ProPhase Labs, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Stockholders??? Equity (Tables)

Stockholders’ Equity (Tables)

12 Months Ended

Dec. 31, 2021

The following table summarizes stock options activity during Fiscal 2021 and 2020 for the Amended 2010 Plan, the Amended 2010 Directors’ Plan, the 2018 Stock Plan and the Inducement Award (in thousands, except per share data).

Schedule of Stock Options Activity

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Total Intrinsic Value
Outstanding as of January 1, 2020		3,082			1.67		3.7	$	1,085
Granted		713			4.58		7.0		-
Outstanding as of December 31, 2020		3,795		$	2.21		3.4	$	26,441
Granted		1,825			7.29		6.2		-
Forfeited		(505	)		8.50		-		-
Expired		(5	)		1.39
Outstanding as of December 31, 2021		5,110		$	3.27		3.4	$	20,820
Options vested and exercisable		3,994		$	2.51		2.6	$	19,218

Summary of Weighted Average Assumptions Used in Determining Fair Value of Options

The following table summarizes weighted average assumptions used in determining the fair value of the stock options at the date of grant during Fiscal 2021 and 2020:

	For the years ended
	December 31,
	2021			2020
Exercise price	$	7.29		$	4.58
Expected term (years)		4.0			4.2
Expected stock price volatility		79	%		52	%
Risk-free rate of interest		0.8	%		0	%
Expected dividend yield (per share)		0	%		0	%

Schedule of Warrant Activity

The following table summarizes warrant activities during Fiscal 2021 and 2020 (in thousands, except per share data):

Schedule of Warrant Activity

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)
Outstanding as of January 1, 2020		-		$	-		-
Warrants granted		450			3.22		3.0
Outstanding as of December 31, 2020		450		$	3.22		2.7
Warrants granted		455			12.83		3.0
Cashless exercise		(50	)		5.00		-
Outstanding as of December 31, 2021		855		$	8.23		1.9
Warrants vested and exercisable		855		$	8.23		1.9

Summary of Weighted Average Assumptions Used in Determining Fair Value of Warrants

The following table summarizes weighted average assumptions used in determining the fair value of the warrants at the date of grant during Fiscal 2021 and Fiscal 2020:

	For the years ended
	December 31,
	2021			2020
Exercise price	$	12.83		$	3.22
Expected term (years)		3.0			2.0
Expected stock price volatility		81	%		58	%
Risk-free rate of interest		0.2	%		0	%
Expected dividend yield (per share)		0	%		0	%