Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2022
Share-based Payment Arrangement [Abstract]  
As of December 31, 2021, there were 38,976,000 shares of Company common stock authorized for issuance under the CV Sciences, Inc. Amended and Restated 2013 Equity Incentive Plan (the "2013 Plan"). On June 11, 2019, the Company’s stockholders approved an amendment to the 2013 Plan to add an automatic “evergreen” provision regarding the number of shares to be annually added to the 2013 Plan. As a result, the number of shares of common stock that will be automatically added to the 2013 Plan on January 1 of each year during the term of the plan, starting with January 1, 2020, will be the lesser of: (a) 4% of the total shares of the Company’s common stock outstanding on December 31st of the prior year, (b) 4,000,000 shares of the Company’s common stock, or (c) a lesser number of shares of the Company’s common stock as determined by the Company’s Board of Directors. On January 1, 2022, the Company's Board of Directors elected not to add any shares to the 2013 Plan. In March 2022, the Company cancelled 9,000,000 outstanding stock options, of which 7,000,000 were previously granted under the 2013 Plan. On March 30, 2022, the Company's Board of Directors approved, and the Company adopted, an amendment to the 2013 Plan to reduce the number of shares available for issuance under the 2013 Plan by 8,000,000 shares. As of March 31, 2022, the Company had 4,347,000 authorized unissued shares reserved and available for issuance under the 2013 Plan.
As of March 31, 2022, total unrecognized compensation cost related to non-vested stock-based compensation arrangements was $1.0 million, which is expected to be recognized over a weighted-average period of 0.89 years.
The following summarizes activity related to the Company's stock options (in thousands, except per share data):
Number of Shares Weighted Average
Exercise Price
Weighted Average
Remaining Contract
Term (in years)
Aggregate Intrinsic Value
Outstanding - December 31, 2021 30,163 $ 0.49  5.5 $ — 
Granted —  —  — 
Exercised —  —  — 
Forfeited (7,872) 0.47  —  — 
Outstanding - March 31, 2022 22,291 0.49  4.6
Exercisable - March 31, 2022 19,120 0.50  3.9
Vested or expected to vest - March 31, 2022 22,291 $ 0.49  4.6 $
The Company has established performance milestones in connection with drug development efforts for its lead drug candidate CVSI-007. The above table includes 4,250,000 vested performance-based options as of March 31, 2022, which were issued outside of the 2013 Plan. As of March 31, 2022, there were 6,750,000 remaining unvested stock options granted to Michael Mona Jr. ("Mona Jr.") outside of the 2013 Plan which are not included in the above table. These stock options vest upon the completion of future performance conditions (refer to Note 11).

There were no stock options exercised during the three months ended March 31, 2022 and 2021.
The following table presents the weighted average grant date fair value of stock options granted and the weighted-average assumptions used to estimate the fair value on the date of grant using the Black-Scholes valuation model:
Three months ended March 31,
2022 2021
Volatility * 134.1%
Risk-Free Interest Rate * 1.0%
Expected Term (in years) * 5.61
Dividend Rate * —%
Fair Value Per Share on Grant Date * $0.53
* there were no grants during the three months ended March 31, 2022.
The risk-free interest rates are based on the implied yield available on U.S. Treasury constant maturities with remaining terms equivalent to the respective expected terms of the options. Expected volatility is based on the historical volatility of the
Company's common stock. The Company estimates the expected term for stock options awarded to employees, non-employees, officers and directors using the simplified method in accordance with ASC Topic 718, Stock Compensation, because the Company does not have sufficient relevant historical information to develop reasonable expectations about future exercise patterns. In the future, as the Company gains historical data for the actual term over which stock options are held, the expected term may change, which could substantially change the grant-date fair value of future stock option awards, and, consequently, compensation of future grants.