Note 12 – Stock-Based Compensation and Warrants

As of September 30, 2021, the Company had 147,256 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, 2021 and 2020 was $0.7 million and $0.5 million, respectively, and $2.8 million and $1.3 million for the nine months ended September 30, 2021 and 2020, 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 $0.2 million and $0.1 million of stock granted to directors for the three months ended September 30, 2021 and 2020, respectively, and $0.4 million and $0.3 million of stock granted to directors for the nine months ended September 30, 2021 and 2020, respectively. Such grants were awarded consistent with the Board of Director’s compensation practices and included grants to two new board members appointed in September 2021. In addition, stock-based compensation expense for the three months ended June 30, 2021 included $0.4 million of employer payroll taxes associated with stock option and RSU activity during the quarter. Stock-based compensation for the three months ended March 31, 2021 included $0.3 million of compensation costs for the vesting of market condition based options and RSUs.

Stock Option Activity

Stock options in the table below include both time based and market condition based awards. Changes in stock options during the nine months ended September 30, 2021 were as follows:

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A summary of the status of the Company’s non-vested stock options as of December 31, 2020 and September 30, 2021 and changes during the nine months then ended, is presented below:

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The fair value of options that vested in the nine months ended September 30, 2021 was $0.1 million. As of September 30, 2021, there is $0.1 million of total unrecognized compensation cost related to non-vested awards, which will be recognized over a weighted-average period of 0.5 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 nine months ended September 30, 2021 is presented below:

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As of September 30, 2021, the Company had approximately $7.7 million of total unrecognized compensation costs related to RSUs, which will be recognized over a weighted average period of 3.2 years.

Warrants

As of December 31, 2020, there were outstanding warrants to purchase 865,000 shares of common stock at exercise prices ranging from $1.63 to $2.61. During the first quarter of 2021, the Company issued 450,971 shares in connection with the net exercise by Anson Investments Master Fund LP of warrants to purchase 640,000 shares. In April 2021, the Company issued 100,000 shares to 22235570 Ontario Limited in connection with its exercise of a warrant for aggregate consideration of $261,000. As of September 30, 2021, warrants to purchase 125,000 shares at a strike price of $1.63 per share were outstanding to a single party.