Note 12 – Stock-Based Compensation

As of September 30, 2020, the Company had 1,204,428 remaining shares available for issuance under the 2019 Equity Incentive Plan (“2019 Equity Plan”).

Stock-based compensation cost for the three months ended September 30, 2020 and 2019 was $0.5 million and $0.3 million, respectively, and $1.3 million and $1.0 million for the nine months ended September 30, 2020 and 2019, respectively. Stock-based compensation is included in general and administrative expenses in the condensed consolidated statements of operations and comprehensive (loss) income. Included in stock-based compensation cost was $0.1 million and $0.3 million of stock granted to directors for the three and nine months ended September 30, 2020, respectively. Such grants were awarded consistent with the Board of Director’s compensation practices.

Stock Option Activity

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

 

 

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

 

 

The fair value of options that vested in the nine months ended September 30, 2020 was $0.2 million. As of September 30, 2020, there are 579,402 milestone-based options outstanding and $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 of Directors. As of September 30, 2020, there is $0.2 million of total unrecognized compensation cost related to non-vested awards, which will be recognized over a weighted-average period of 2.1 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 nine months ended September 30, 2020 is presented below:

 

 

As of September 30, 2020, 150,000 RSUs subject to performance-based vesting were outstanding with unrecognized compensation cost of $0.4 million related to these milestone-based awards. As of September 30, 2020, the Company had approximately $2.2 million of total unrecognized compensation costs related to RSUs, which will be recognized over a weighted average period of 2.1 years.