Annual report pursuant to Section 13 and 15(d)

Stock Based Compensation

v3.19.1
Stock Based Compensation
12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
STOCK BASED COMPENSATION
8. STOCK BASED COMPENSATION

 

Options to directors, officers, consultants and employees

 

The Company maintains, as adopted by the board of directors, the 2017 Stock Incentive Plan, the 2016 Stock Incentive Plan, the 2014 Stock Incentive Plan, the 2014 Stock Compensation Plan, 2013 Incentive Stock Plan, the 2012 Incentive Stock Plan, the 2011 Incentive Stock Plan and the 2010 Stock Incentive Plan (the “Plans”) providing for the issuance of options to employees, officers, directors or consultants of the Company. Non-qualified stock options granted under the plans may only be granted with an exercise price equal to the fair market value of the Company’s common stock on the date of grant.  Awards under the plans may be either vested or unvested options. The 2017 Stock Incentive Plan authorized 5,000,000 shares with vesting in sixteen equal quarterly tranches.

 

In addition to the Plans, the Company has granted, on various dates, stock options to directors, officers, consultants and employees to purchase common stock of the Company. The terms, exercise prices and vesting of these awards vary. 

 

The following table summarizes option activity for directors, officers, consultants and employees:

 

          Outstanding Stock Options  
    Options Available for Grant     Number of Options     Weighted
Average
Exercise Price
per Option
    Weighted
Average Grant
Date Fair Value
 per Option
    Weighted
Average
Remaining
Exercise Term
in Months
 
Balance December 31, 2016     1,045,774       2,321,782     $ 2.31     $ 1.49       43  
Additional stock reserved     5,000,000       -       -       -       -  
Granted     (1,900,000 )     1,900,000       5,01       3.41       72  
Exercised     -       (74,109 )     1.13       0.95       -  
Forfeited     -       (296,302 )     -       -       -  
Expired     -       -       -       -       -  
Balance December 31, 2017     4,145,774       3,851,371       3.11       1.84       43  
Additional stock reserved     -       -       -       -       -  
Granted     (340,000 )     340,000       1.18       0.54       56  
Exercised     -       (52,500 )     1.24       0.68       -  
Forfeited     -       -     -       -       -  
Expired     -       (271,250 )     3.22       1.58       -  
Balance December 31, 2018     3,805,774       3,867,621     $ 4.05     $ 1.84       64  

 

The Company recorded approximately $1.1 million and $1.4 million of compensation expense for stock options to directors, officers, consultants and employees for the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018, unrecognized compensation expense of $2.4 million is related to non-vested options granted to directors, officers, consultants and employees which is anticipated to be recognized over the next 60 months, commensurate with the vesting schedules.

 

Warrants

 

In addition to the stock options above and the stock warrants associated with the Arosa Loan and Marathon Credit Facility previously discussed, the Company has outstanding warrants with certain Accredited Investors. There are 2,618,307 of these warrants outstanding, which were issued in November 2015 with a five-year life and an exercise price of $5.28. These warrants were initially accounted for as equity instruments and as such, no amounts have been recorded as compensation expense or mark to market adjustment for the years ended December 31, 2018 and December 31, 2017.

 

The Company recorded no compensation expense for stock warrants to the placement agent and consultants for the years ended December 31, 2018 and 2017, respectively. There is no unrecognized compensation expense for the placement agent warrants because they are fully vested at date of grant.