urban-gro, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2022

Share-Based Payment Arrangement [Abstract]

NOTE 9 – STOCK-BASED COMPENSATION

Stock-based compensation expense for the three months ended March 31, 2022 and 2021 was $882,000 and $290,805, respectively, based on the vesting schedule of the stock grants and options.

The following schedule shows stock grant activity for the three months ended March 31, 2022.

SCHEDULE OF STOCK GRANT ACTIVITY

Grants unissued as of December 31, 2021	153,673
Grants awarded	311,500
Forfeiture/Cancelled	(7,200	)
Grants Vested	(16,667	)
Grants unissued as of March 31, 2022	441,306

As of March 31, 2022, the Company has $2.2 million in unrecognized share-based compensation expense related to these stock grants.

The following schedule shows stock option activity for the three months ended March 31, 2022.

SCHEDULE OF STOCK GRANT VESTING PERIODS

	Number of Shares			Weighted Average Remaining Life (Years)		Weighted Average Exercise Price
Stock options outstanding as of December 31, 2021		641,337			7.55	$	6.27
Issued		44,410			9.8	$	10.48
Expired		-			-	$	-
Exercised		(4,555	)		-	$	6.00
Stock options outstanding as of March 31, 2022		681,192			7.75	$	6.63
Stock options exercisable as of March 31, 2022		579,169			7.41	$	6.44

The fair value of the options is calculated using the Black-Scholes pricing model based on the market value of the underlying common stock at the valuation measurement date of $10.48, the remaining contractual term of the options of 10 years, risk-free interest rate of 0.66% and expected volatility of the price of the underlying common stock of 100%.

As of March 31, 2022, the Company has $0.7 million in unrecognized share-based compensation expense related to these stock options. The aggregate intrinsic value of the options outstanding and exercisable at March 31, 2022 is $0.