Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.19.1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation

Note 15 - Stock-Based Compensation

 

As of March 31, 2019, the Company had 458,746 remaining shares available for issuance under the 2013 Employee, Director and Consultant Equity Incentive Plan (the “2013 Equity Plan”).

 

Stock-based compensation cost for each of the three months ended March 31, 2019 and 2018 was $0.2 million and is included in general and administrative expenses in the consolidated statement of operations and comprehensive income.

 

Stock Option Activity

 

Changes in outstanding stock options during the three months ended March 31, 2019 were as follows:

 

    Shares     Weighted average 
exercise price		     Weighted average remaining 
contractual life		   Intrinsic 
value 
(thousands)		  
Outstanding at December 31, 2018     2,001,008     $ 3.29              
Granted     68,000       2.99              
Exercised     —       —              
Cancelled, expired or forfeited     (63,000 )     2.80              
Outstanding at March 31, 2019     2,006,008     $ 3.29     6.67 years   $ 1,063  
Exercisable at March 31, 2019     1,065,508     $ 4.16     5.45 years   $ —  

 

The fair value of options granted in the three months ended March 31, 2019 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

 

Expected life, in years     8.5 years  
Risk-free interest rate     2.62 %
Volatility     42.0 %
Dividend yield     0.0 %
  

A summary of the status of the Company’s non-vested stock options as of December 31, 2018 and March 31, 2019 and changes during the three months then ended, is presented below:

 

    Shares     Weighted 
average grant 
date fair value		  
Non-vested stock options at December 31, 2018     926,500     $ 0.91  
Granted     68,000       2.99  
Vested     —       —  
Cancelled, expired or forfeited     (54,000 )     0.99  
Non-vested stock options at March 31, 2019     940,500     $ 0.95  

 

As of March 31, 2019, there are 579,402 milestone-based options outstanding. These options vest based on the achievement of Company and individual objectives as set by the Board.

 

As of March 31, 2019, 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.

 

Restricted Stock Unit Activity

 

The Company issues restricted stock units (“RSUs”) under the 2013 Equity Plan. The fair value of these RSUs is determined based upon the closing fair market value of the Company’s common stock on the grant date.

 

A summary of the status of RSUs and changes during the three months ended March 31, 2019 is presented below:

 

    Shares     Weighted 
average grant 
date fair value		  
Non-vested RSUs at December 31, 2018     764,201     $ 2.54  
Granted     142,205       2.93  
Vested     (20,544 )     2.86  
Cancelled, expired or forfeited     (9,000 )     2.73  
Non-vested RSUs at March 31, 2019     764,201     $ 2.59  

 

As of March 31, 2019, 150,000 RSUs subject to performance-based vesting were still outstanding. As of March 31, 2019, the Company had approximately $3.2 million of total unrecognized compensation costs related to RSUs, which will be recognized over a weighted average period of 2.8 years.