Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation Plans

v3.10.0.1
Stock Based Compensation Plans
9 Months Ended
Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Based Compensation Plans
Note 11 – Stock Based Compensation Plans
 
A summary of stock option activity for the nine months ended September 30, 2018 is as follows:
 
 
 
Number of 

Options
 
 
Weighted

Average

Exercise

Price
 
 
 
 
 
Outstanding at December 31, 2017
 
 
1,510,244
 
 
$
5.04
 
Granted
 
 
133,500
 
 
 
5.55
 
Exercised
 
 
(76,354
)
 
 
5.61
 
Expired or Forfeited
 
 
(177,527
)
 
 
6.14
 
 
 
 
 
 
 
 
 
 
Outstanding at September 30, 2018
 
 
1,389,863
 
 
$
4.93
 
 
The weighted average remaining contractual term for all options as of September 30, 2018 and December 31, 2017 was 7 years and 7.6 years, respectively.
 
As of September 30, 2018, there were 924,309 options that were fully-vested and exercisable at a weighted average exercise price of $4.53 per share. The weighted average remaining contractual term on the vested options is 6.1 years.
 
As of September 30, 2018, there were 465,554 unvested options exercisable at a weighted average exercise price of $5.72 per share. The weighted average remaining contractual term on the unvested options is 8.8 years.
 
For the nine months ended September 30, 2018, all options exercised were on a cashless basis.
 
The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. At September 30, 2018, the Company had approximately $2,410,000 of unrecognized stock compensation expense, which will be recognized over a weighted average period of approximately 2.7 years.
 
During the three months ended September 30, 2018, the Company issued 45,000 shares of common stock to its independent board members as part of their annual retainer for services covering the period of July 2018 to June 2019. The fair market value on the date of award of the stock issued was $6.88, resulting in an aggregate fair value of approximately $310,000. The fair market value of these awards is expensed over 12 months. As of September 30, 2018, there was 
approximately
$232,000 of unrecognized expense related to these stock awards.
 
During the nine months ended September 30, 2018, the Company awarded 100,000 shares of common stock to its board members and members of management. The fair market value of each share awarded was $6.10 on the date of grant, May 4, 2018, for an aggregate fair market value of $610,000. The aggregate fair market value of stock awards issued to external directors was $122,000 and
the aggregate fair market value of stock awards issued
to other members of management 
was $488,000,
 which are vesting over 12 and 48 month periods, respectively. As of September 30, 2018, there was approximately $508,000 of unrecognized expense related to these stock awards.
 
For the three months ended September 30, 2018 and 2017, the Company recorded total stock-based compensation expense of approximately $291,000 and $425,000, respectively. For the nine months ended September 30, 2018 and 2017, the Company recorded total stock-based compensation expense of approximately $1,473,000 and $912,000, respectively. For the nine months ended September 30, 2018, stock-based compensation expense includes approximately $384,000 of one-time compensation expense related to accrued severance.