Stockholders' Equity 
9 Months Ended  

Sep. 30, 2021  
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY 
NOTE 6  STOCKHOLDERS’ EQUITY
Common Stock
During the nine months ended September 30, 2021, the Company issued 356,385 shares of common stock for cash exercises of warrants for proceeds of $2,116,969.
During the nine months ended September 30, 2021, the Company issued 160,556 shares of common stock for the exercise of options for proceeds of $569,427.
On May 15, 2020, the Company entered into an Open Market Sale Agreement with Jefferies LLC, as sales agent (“Jefferies”), pursuant to which the Company may offer and sell, from time to time, through Jefferies, shares of the Company’s common stock, having an aggregate offering price of up to $75,000,000. The Company is not obligated to sell any shares under the agreement. During the nine months ended September 30, 2021, the Company issued 651,674 shares of common stock for net cash proceeds of $23,416,036 under the agreement. During the nine months ended September 30, 2020, the Company issued shares of common stock for net cash proceeds of $19,816,597.
Options and Warrants
In December 2014, the Board of Directors adopted and the Company’s shareholders approved Relmada’s 2014 Stock Option and Equity Incentive Plan, as amended (the “Plan”), which allows for the granting of common stock awards, stock appreciation rights, and incentive and nonqualified stock options to purchase shares of the Company’s common stock to designated employees, nonemployee directors, and consultants and advisors.
In May 2021, the Company’s shareholders approved Relmada’s Board of Director approved 2021 Equity Incentive Plan which allows for the granting of 1,500,000 options or stock awards.
These combined plans allow for the granting of up to 6,652,942 options or stock awards.
Stock options are exercisable generally for a period of 10 years from the date of grant and generally vest over four years. As of September 30, 2021, 1,609,011 shares were available for future grants under the Plan.
As of September 30, 2021, no stock appreciation rights have been issued.
The Company utilizes the BlackScholes option pricing model to estimate the fair value of stock options and warrants. The riskfree interest rate assumptions were based upon the observed interest rates appropriate for the expected term of the equity instruments. The expected dividend yield was assumed to be zero as the Company has not paid any dividends since its inception and does not anticipate paying dividends in the foreseeable future. The expected volatility was based on historical volatility. The Company routinely reviews its calculation of volatility changes in future volatility, the Company’s life cycle, its peer group, and other factors.
The Company uses the simplified method for sharebased compensation to estimate the expected term for equity awards for sharebased compensation in its optionpricing model.
On January 6, 2021, the Company awarded a total of 1,490,000 options to employees and directors with an exercise price of $33.43 and a 10year term vesting over a 4year period. The options granted include time based vesting grants and performance vesting based on the Company’s achievement of performance metrics. The options have an aggregate fair value of $39.7 million calculated using the BlackScholes optionpricing model. Variables used in the BlackScholes optionpricing model include: (1) discount rate of 0.59% (2) expected life of 6.25 years, (3) expected volatility of 101%, and (4) zero expected dividends. As of September 30, 2021, five performance metrics for 468,000 options were met. Vesting of such options is subject to the passage of time. At September 30, 2021, the Company incurred expense of $2,268,562 related to these options.
On February 18, 2021, the Company awarded a total of 25,000 options to an employee with an exercise price of $35.15 and a 10year term, vesting over a 4year period. The options have an aggregate fair value of $701,000 calculated using the BlackScholes optionpricing model. Variables used in the BlackScholes optionpricing model include: (1) discount rate of 0.75% (2) expected life of 6.25 years, (3) expected volatility of 101%, and (4) zero expected dividends.
At September 30, 2021, the Company has unrecognized stockbased compensation expense of approximately $67.6 million related to unvested stock options over the weighted average remaining service period of 2.76 years.
Options
A summary of the changes in options during the nine months ended September 30, 2021 is as follows:
Warrants
A summary of the changes in outstanding warrants during the nine months ended September 30, 2021 is as follows:
At September 30, 2021, the Company had approximately $12.5 million of unrecognized compensation expense related to outstanding warrants.
On January 6, 2021, the Company awarded a total of 400,000 warrants to consultants with an exercise price of $33.43 and a 10year term, vesting over 4year period. The warrants granted include time based vesting grants and performance vesting based on the Company’s achievement of performance metrics. The warrants have an aggregate fair value of $10.6 million calculated using the BlackScholes optionpricing model. Variables used in the BlackScholes optionpricing model include: (1) discount rate of 0.59% (2) expected life of 6.25 years, (3) expected volatility of 101%, and (4) zero expected dividends. As of September 30, 2021, five performance metrics for 180,000 warrants were met. Vesting of such options is subject to the passage of time. At September 30, 2021, the Company incurred expense of $872,524 related to these warrants.
On June 18, 2021, the Company awarded a total of 10,000 warrants to a consultant with an exercise price of $30.90 and a 5year term, vesting over a 1year period. The warrants granted are time based vesting. The warrants have an aggregate fair value of $190,401 calculated using the BlackScholes optionpricing model. Variables used in the BlackScholes optionpricing model include: (1) discount rate of 0.47% (2) expected life of 3.00 years, (3) expected volatility of 100%, and (4) zero expected dividends.
On June 25, 2021, the Company awarded a total of 10,000 warrants to a consultant with an exercise price of $34.35 and a 5year term, vesting over a 1year period. The warrants granted are time based vesting. The warrants have an aggregate fair value of $211,653 calculated using the BlackScholes optionpricing model. Variables used in the BlackScholes optionpricing model include: (1) discount rate of 0.43% (2) expected life of 3.00 years, (3) expected volatility of 100%, and (4) zero expected dividends.
On July 12, 2021, the Company awarded a total of 10,000 warrants to a consultant with an exercise price of $34.77 and a 5year term, vesting over a 1year period. The warrants granted are time based vesting. The warrants have an aggregate fair value of $212,219 calculated using the BlackScholes optionpricing model. Variables used in the BlackScholes optionpricing model include: (1) discount rate of 0.43% (2) expected life of 3.00 years, (3) expected volatility of 99%, and (4) zero expected dividends.
On July 16, 2021, the Company awarded a total of 500,000 warrants to Arbormentis, LLC with an exercise price of $31.17 and a 7year term, vesting immediately. The warrants have an aggregate fair value of $10,241,599 calculated using the BlackScholes optionpricing model. Variables used in the BlackScholes optionpricing model include: (1) discount rate of 0.48% (2) expected life of 3.50 years, (3) expected volatility of 101%, and (4) zero expected dividends.
At September 30, 2021, the aggregate intrinsic value of warrants vested and outstanding was approximately $40.0 million and $40.1 million, respectively.
At December 31, 2020, the aggregate intrinsic value of warrants vested and outstanding was approximately $61.0 million and $61.2 million, respectively.
The following table summarizes the components of stockbased compensation expense which includes stock options and warrants in the unaudited consolidated statements of operations for the nine months ended September 30, 2021 and 2020 (rounded to nearest $00):
