v3.22.2.2
Non-Controlling Interest (Tables)
 9 Months Ended
Sep. 30, 2022
Noncontrolling Interest [Abstract]  
Schedule of preferred stock
At September 30, 2022, Series B Preferred Stock consisted of the following:

Shares AuthorizedShares Issued and OutstandingStated Value per ShareInitial Carrying ValueAccrued Preferred DividendsLiquidation Preference
1,000,000 3,138 $1,000 $3,138,000 $258,672 $3,396,672 
Schedule of condensed financial statements
The following table summarizes Levo non-controlling interests presented as a separate component of stockholders’ equity on the Company’s condensed consolidated balance sheet at September 30, 2022:

September 30, 2022
 
Net loss attributable to non-controlling interests as of September 30, 2022
$(2,380,821)
Less: dividends paid to non-controlling interests as of September 30, 2022
195,912 
Less: Preferred share accretion adjustment as of September 30, 2022
484,398 
Non-controlling interests$(3,061,131)
Schedule of condensed income statement
The following table summarizes Levo non-controlling interests presented as a separate component of the Company’s condensed consolidated statements of operations as of September 30, 2022:

Three Months Ended
September 30, 2022		Nine Months Ended September 30, 2022
Net loss attributable to non-controlling interests
$(168,985)$(2,380,821)
Schedule of redeemable noncontrolling interest
Redeemable Non-controlling Interest Reconciliation — Mezzanine Equity

Nine Months Ended September 30, 2022
Beginning balance - December 31, 2021
$2,885,426 
Preferred share Accretion adjustment as of September 30, 2022
484,398 
Ending balance - September 30, 2022
 $3,369,824 
Schedule of black-scholes option pricing model to estimate the fair value of stock options The following assumptions were used in the Black-Scholes model to calculate the fair value of stock options granted for the nine months ended September 30, 2022 for the 2010 Plan and the 2020 Plan.
2010 Plan2020 Plan
Expected life of options (in years) (1)6.16.1
Dividend yield (2)0 %0 %
Risk-free interest rate (3)2.94 %2.54 %
Volatility (4)57.0 %55.8 %
__________________
(1)The expected life of options is the average of the contractual term of the options and the vesting period.
(2)No cash dividends have been declared on the Company’s common stock since the Company’s inception, and the Company currently does not anticipate declaring or paying cash dividends over the expected life of the options.
(3)The risk-free interest rate is based on the yields on U.S. Treasury debt securities with maturities approximating the estimated life of the options.
(4)Volatility is estimated by management. As the Company has been a private company for most of its existence, there is not enough historical volatility data related to the Company’s Common stock as a public entity. Therefore, this estimate is based on the average volatility of certain public company peers within the Company’s industry.
The following assumptions were used in the Monte Carlo Simulation model to calculate the fair value of Class D Incentive Units granted for the nine months ended September 30, 2022.
Class D Units
Expected life of Class D Incentive Units (in years) (1)5.5
Risk-free interest rate (2)3.02 %
Volatility (3)69.50 %
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(1)The expected life of options is the average of the contractual term of the Class D Incentive Units and the vesting period.
(2)The risk-free interest rate is based on the yields on U.S. Treasury debt securities with maturities approximating the estimated life of the options.
(3)Volatility is estimated by management. As the Company has been a private company for most of its existence, there is not enough historical volatility data related to the Company’s Common stock as a public entity. Therefore, this estimate is based on the average volatility of certain public company peers within the Company’s industry.
Schedule of stock option activity
The following is a summary of the stock option activity under the 2010 Plan, as converted to the Company’s shares due to Reverse Recapitalization, for the nine months ended September 30, 2022:
SharesWeighted-
Average
Exercise
Price per
Share($)		Weighted-
Average
Remaining
Contractual
Term
(Years)		Aggregate Intrinsic Value($)
Outstanding - December 31, 20211,035,035 3.21 5.905,688,201 
Granted— — — — 
Exercised(59,729)2.09 — — 
Forfeited(44,030)7.49 — — 
Expired/Cancelled(19,249)6.68 — — 
Outstanding - September 30, 2022912,027 3.16 5.5980,968 
Options Exercisable at September 30, 2022824,446 2.54 4.5180,968 
Option Vested at September 30, 2022
823,915 2.54 4.5180,968 
The following is a summary of the stock option activity under the 2020 Plan for the nine months ended September 30, 2022:
SharesWeighted-
Average
Exercise
Price per
Share ($)		Weighted-
Average
Remaining
Contractual
Term
(Years)		Aggregate Intrinsic Value($)
Outstanding - December 31, 20211,602,850 13.18 9.2746,920 
Granted281,100 5.25 9.92— 
Exercised— — — — 
Forfeited(201,388)10.29 — — 
Expired/Cancelled(1,250)8.25 — — 
Outstanding - September 30, 20221,681,312 12.10 8.67— 
Options Exercisable at September 30, 2022519,932 13.36 8.47— 
Option Vested at September 30, 2022
519,932 13.38 8.47— 
A summary of the status of the Company’s Class D Incentive Units as of December 31, 2021, and changes during the nine months ended September 30, 2022, is presented below:
SharesWeighted-
Average Grant
Date Fair Value($)
Nonvested at December 31, 2021— — 
Granted250,000 13.28 
Vested— — 
Cancelled— — 
Nonvested and Outstanding at September 30, 2022
250,000 13.28