Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation Plans

v3.8.0.1
Stock Based Compensation Plans
3 Months Ended
Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Based Compensation Plans
Note 10 — Stock Based Compensation Plans
 
A summary of stock option activity for the three months ended March 31, 2018 is as follows:
 
 
 
Number of
Options
 
Weighted
Average
Exercise
Price
 
 
 
 
 
 
 
 
 
Outstanding at December 31, 2017
 
 
1,510,244
 
$
5.04
 
Granted
 
 
 
 
 
Exercised
 
 
 
 
 
Expired or Forfeited
 
 
(29,435)
 
 
7.81
 
 
 
 
 
 
 
 
 
Outstanding at March 31, 2018
 
 
1,480,809
 
$
4.99
 
 
The weighted average remaining contractual term for all options as of March 31, 2018 and December 31, 2017 was 7.5 years and 7.6 years, respectively.
 
As of March 31, 2018, there were 850,721 options that were fully vested and exercisable at a weighted average exercise price of $4.55 per share. The weighted average remaining contractual term on the vested options is 6.6 years.
  
As of March 31, 2018, there were 630,088 unvested options exercisable at a weighted average exercise price of $5.57 per share. The weighted average remaining contractual term on the unvested options is 8.7 years.
   
The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. At March 31, 2018, the Company had approximately $3,130,000 of unrecognized stock compensation expense, which will be recognized over a weighted average period of approximately 2.8 years.
 
During the year ended December 31, 2017, the Company issued 100,000 shares of non-vested stock to an executive officer which vest over 48 months. The fair market value on the date of grant of the non-vested stock issued was $5.90, resulting in an aggregate fair value of $590,000. As of March 31, 2018, there was approximately $458,000 of unrecognized compensation expense related to unvested stock awards. This amount is expected to be recognized over a weighted-average period of 3.1 years.
 
During the year ended December 31, 2017, the Company issued 50,000 common shares of stock to its external board members as part of their annual retainer for services covering the period of July 2017 to June 2018. The fair market value on the date of award of the stock issued was $6.70, resulting in an aggregate fair value of $335,000. The fair market value of these awards is expensed over 12 months. As of March 31, 2018, there was approximately $83,750 of unrecognized expense related to these stock awards.
 
For the three months ended March 31, 2018 and 2017, the Company recorded total stock compensation expense of approximately $425,000 and $210,000, respectively.