Note 15 – Stock-Based Compensation

Effective June 4, 2019, the Company’s stockholders approved amendments to the 2013 Employee, Director and Consultant Equity Incentive Plan  (the “2019 Equity Plan”). Among other things, the amendments increased the number of shares of common stock authorized for issuance under the 2019 Equity Plan by 2,300,000 shares to a new maximum aggregate limit of 7,073,922 shares. As of June 30, 2019, the Company had 2,634,177, remaining shares available for issuance under the 2019 Equity Plan.

Stock-based compensation cost was  $0.5 and $0.3 million for the three months ended June 30, 2019 and 2018, respectively, and $0.6 and $0.7 million for the six months ended June 30, 2019 and 2018, respectively. Stock-based compensation is included in general and administrative expenses in the consolidated statements of operations and comprehensive income.

Stock Option Activity

Changes in outstanding stock options during the six months ended June 30, 2019 were as follows:

 

 

The fair value of options granted in the six months ended June 30, 2019 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

 

 

A summary of the status of the Company’s non-vested stock options as of December 31, 2018 and June 30, 2019 and changes during the six months then ended, is presented below:

 

 

As of June 30, 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 June 30, 2019, there is approximately $0.5 million of total unrecognized compensation cost related to non-vested awards, which will be recognized over a weighted-average period of 3.1 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 six months ended June 30, 2019 is presented below:

 

 

As of June 30, 2019, 150,000 RSUs subject to performance-based vesting were still outstanding. As of June 30, 2019, the Company had approximately $1.8 million of total unrecognized compensation costs related to RSUs, which will be recognized over a weighted average period of 3.0 years.