In October 2013, the Board approved the 2013 Employee, Director and Consultant Equity Incentive Plan (the “2013 Equity Plan”). The 2013 Equity Plan provides for the granting of stock options, warrants, restricted stock or other stock-based awards to directors, officers, key employees and other key individuals performing services for the Company. All awards are required to be approved by the Board or a designated committee of the Board. The 2013 Equity Plan will terminate automatically in October 2023, unless terminated by the Board at an earlier date. The Board has the authority to amend, modify or terminate the 2013 Equity Plan, subject to any required approval by the Company’s stockholders under applicable law or upon advice of counsel. No such action would affect any options previously granted under the 2013 Equity Plan without the consent of the holders.

 

The 2013 Equity Plan provides for the issuance of up to 4,773,992 shares of common stock. Options are generally granted with an exercise price equal to fair market value on the date of grant and expire after ten years. Vesting of options and restricted stock can either be based on the passage of time or on the achievement of performance goals. As of December 31, 2018, there were 596,951 shares remaining available for issuance under the 2013 Equity Plan.

 

 

Stock-based compensation cost for the years ended December 31, 2018 and 2017 was $1.3 million and $1.1 million, respectively, and is included in general and administrative expenses in the consolidated statement of operations and comprehensive income (loss). Included in stock-based compensation cost was $0.1 million and $0.2 million of unrestricted stock granted to directors for years ended December 31, 2018 and 2017, respectively. Such grants were awarded consistent with the Board’s compensation practices.

 

The fair value of options granted during 2017 and 2016 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions by grant year:

 

 

The weighted average fair value of stock options issued was $0.77 for the year ended December 31, 2017. There were no stock options granted in the year ended December 31, 2018.

 

 

 

 

 

 

$0.5 

579,402

 

As of December 31, 2018, there is approximately $0.6 million of total unrecognized compensation cost related to non-vested awards, which will be recognized over a weighted-average period of 2.8 years.

 

 

The Company issues restricted stock awards under the 2013 Equity Plan. The fair value of these awards is determined based upon the closing fair market value of the Company’s common stock on the grant date.

 

 

 

As of December 31, 2018, 150,000 restricted shares subject to performance-based vesting were still outstanding. As of December 31, 2018, the Company had approximately $1.2 million of total unrecognized compensation costs related to restricted stock awards, which will be recognized over a weighted average period of 3.1 years.