Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.20.2
Stock-Based Compensation
6 Months Ended
Jun. 30, 2020
Stock-Based Compensation  
Stock-Based Compensation

Note 12 – Stock-Based Compensation

As of June 30, 2020, the Company had 1,390,326 remaining shares available for issuance under the 2019 Equity Incentive Plan (“2019 Equity Plan”).

Stock-based compensation cost for the three months ended June 30, 2020 and 2019 was $0.5 million and $0.5 million, respectively, and $0.8 million and $0.6 million for the six months ended June 30, 2020 and 2019, respectively. Stock-based compensation is included in general and administrative expenses in the condensed consolidated statements 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 the three and six months ended June 30, 2020, respectively. Such grants were awarded consistent with the Board’s compensation practices.

Stock Option Activity

Changes in outstanding stock options during the six months ended June 30, 2020 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

Weighted

 

average

 

Intrinsic

 

 

 

 

average exercise

 

remaining

 

value

 

    

Shares

    

price

    

contractual life

    

(thousands)

Outstanding at December 31, 2019

 

1,806,508

 

$

3.37

 

5.87 years

 

$

1,428

Exercisable at December 31, 2019

 

1,270,508

 

$

3.93

 

5.10 years

 

$

665

Exercised

 

(18,000)

 

 

2.13

 

  

 

 

  

Cancelled, expired or forfeited

 

(81,500)

 

 

3.75

 

  

 

 

  

Outstanding at June 30, 2020

 

1,707,008

 

$

3.37

 

5.49 years

 

$

63

Exercisable at June 30, 2020

 

1,343,675

 

$

3.73

 

5.02 years

 

$

42

 

A summary of the status of the Company’s non-vested stock options as of December 31, 2019 and June 30, 2020 and changes during the six months then ended, is presented below:

 

 

 

 

 

 

 

 

 

 

 

Weighted average

 

    

Shares

    

grant date fair value

Non-vested stock options at December 31, 2019

 

536,000

 

$

0.87

Vested

 

(172,667)

 

 

0.88

Non-vested stock options at June 30, 2020

 

363,333

 

$

0.86

 

The fair value of options that vested in the six months ended June 30, 2020 were less than $0.2 million. As of June 30, 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 June 30, 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 2.3 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 six months ended June 30, 2020 is presented below:

 

 

 

 

 

 

 

 

 

 

 

Weighted average

 

    

Shares

    

grant date fair value

Non-vested RSUs at December 31, 2019

 

955,011

 

$

2.69

Granted

 

1,240,599

 

 

1.19

Vested

 

(271,894)

 

 

2.78

Cancelled, expired or forfeited

 

(32,566)

 

 

2.66

Non-vested RSUs at June 30, 2020

 

1,891,150

 

$

1.69

 

As of June 30, 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 awards. As of June 30, 2020, the Company had approximately $2.5 million of total unrecognized compensation costs related to RSUs, which will be recognized over a weighted average period of 2.4 years.