Note 14 – Stock-Based Compensation

As of March 31, 2020, the Company had 1,301,357 remaining shares available for issuance under the 2019 Equity Incentive Plan (“2019 Equity Plan”).

Stock-based compensation cost for the three months ended March 31, 2020 and 2019 was $0.3 million and $0.2 million, respectively, and is included in general and administrative expenses in the consolidated statements of operations and comprehensive (loss) income. Included in stock-based compensation cost was $0.1 million of unrestricted stock granted to directors for the three months ended March 31, 2020. Such grants were awarded consistent with the Board’s compensation practices.

Stock Option Activity

Changes in outstanding stock options during the three months ended March 31, 2020 were as follows:

 

 

A summary of the status of the Company’s non-vested stock options as of December 31, 2019 and March 31, 2020 and changes during the three months then ended, is presented below:

 

 

The fair value of options that vested in the three months ended March 31, 2020 were less than $0.1 million. As of March 31, 2020, there are 579,402 milestone-based options outstanding, and there is approximately $0.7 million of unrecognized compensation cost related to these milestone-based options. These options vest based on the achievement of Company and individual objectives as set by the Board. As of March 31, 2020, there is approximately $0.3 million of total unrecognized compensation cost related to non-vested awards, which will be recognized over a weighted-average period of 2.5 years.

Restricted Stock Unit Activity

The Company issues restricted stock units (“RSUs”) under the 2019 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, 2020 is presented below:

 

 

As of March 31, 2020,  150,000 RSUs subject to performance-based vesting were still outstanding, and there is approximately $0.4 million of unrecognized compensation cost related to these milestone-based options. As of March 31, 2020, the Company had approximately $2.9 million of total unrecognized compensation costs related to RSUs, which will be recognized over a weighted average period of 2.5 years.