Note 3 – Equity

Stock Options

In 2017, the Board of Directors of the Company approved the CNS Pharmaceuticals, Inc. 2017 Stock Plan (the “2017 Plan”). The 2017 Plan allows for the Board of Directors to grants various forms of incentive awards for up to 2,000,000 shares of common stock. No key employee may receive more than 500,000 shares of common stock (or options to purchase more than 500,000 shares of common stock) in a single year.

In 2020, the Board of Directors of the Company approved the CNS Pharmaceuticals, Inc. 2020 Stock Plan (the “2020 Plan”). The 2020 Plan allows for the Board of Directors to grants various forms of incentive awards for up to 3,000,000 shares of common stock. No key employee may receive more than 750,000 shares of common stock (or options to purchase more than 750,000 shares of common stock) in a single year.

On March 12, 2020, the Board of Directors approved to grant 175,000 options to one employee of the Company and two consultants. The options to the employee vest in four equal annual installments beginning on the first anniversary following issuance. The options to the consultants vest in one annual installment on the first anniversary following issuance. The options have a ten-year term and have an exercise price of $2.21 per share. The fair value of the options at issuance was $337,691.

On April 6, 2020, the Board of Directors approved to grant 125,000 options to one employee of the Company. The options to the employee vest in four equal annual installments beginning on the first anniversary following issuance. The options have a ten-year term and have an exercise price of $2.20 per share. The fair value of the options at issuance was $242,151. On June 12, 2020, the Board of Directors approved a grant of 46,559 options each to four directors of the Company. The options to the Board of Directors vest in one annual installment on the first anniversary of grant date. The options have a ten-year term and have an exercise price of $2.47 per share. The fair value of the options at issuance was $399,991.

During the six months ended June 30, 2020 and 2019, the Company recognized $565,433 and $91,431 of stock-based compensation, respectively, related to outstanding stock options. At June 30, 2020, the Company had $3,092,935 of unrecognized expenses related to options.

The following table summarizes the stock option activity for the six months ended June 30, 2020:

The following table discloses information regarding outstanding and exercisable options at June 30, 2020:

As of June 30, 2020, the aggregate intrinsic value of options vested and outstanding was $638,679. As of June 30, 2020, there are no awards remaining to be issued under the 2017 Plan and 2,749,264 awards remaining to be issued under the 2020 Plan.

Stock Warrants

The following table summarizes the stock warrant activity for the six months ended June 30, 2020:

The following table discloses information regarding outstanding and exercisable warrants at June 30, 2020

As of June 30, 2020 the aggregate intrinsic value of warrants vested and outstanding was $3,582,083.