Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation

v3.20.2
Stock-based Compensation
6 Months Ended
Jun. 30, 2020
Stock-based Compensation  
Note 7 - Stock-based Compensation

a) Warrants

 

The following table summarizes the changes in warrants outstanding of the Company during the six-month period ended June 30, 2020:

 

 

 

Number of

 

 

Weighted Average

 

 

 

Warrants

 

 

Exercise Price ($)

 

Outstanding at December 31, 2019

 

 

190,000

 

 

 

2.90

 

Granted

 

 

50,000

 

 

 

3.45

 

Exercised

 

 

-

 

 

 

-

 

Expired

 

 

-

 

 

 

-

 

Outstanding at June 30, 2020

 

 

240,000

 

 

 

3.02

 

 

 

 

 

 

 

 

 

 

Exercisable at June 30, 2020

 

 

190,000

 

 

 

2.90

 

  

Effective February 26, 2020, the vesting criteria of the remaining installment of a warrant originally granted March 20, 2013 to an officer of the Company, and previously amended, was deemed met pursuant to the approval of the Compensation Committee, resulting in the vesting of the Warrant as to 125,000 shares effective February 26, 2020, with an expiration date of February 26, 2023.

 

Effective March 1, 2020, the Company granted warrants to purchase 50,000 shares of common stock to a Company employee for services to the Company. These warrants vest on September 1, 2021 (subject to continued employment through such date) and expire on March 1, 2026, with an exercise price of $3.45 per share. The Company has calculated the estimated fair market value of these warrants at $86,771, using the Black-Scholes model and the following assumptions: term 3.75 years, stock price $3.44, exercise price $3.45, 69.03% volatility, 0.95% risk free rate, and no forfeiture rate.

 

Below is a table summarizing the warrants issued and outstanding as of June 30, 2020, which have an aggregate weighted average remaining contractual life of 2.65 years.

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

Remaining

 

 

Proceeds to

 

Number

 

 

Number

 

 

Exercise

 

 

Contractual

 

 

Company if

 

Outstanding

 

 

Exercisable

 

 

Price ($)

 

 

Life (Years)

 

 

Exercised ($)

 

 

150,000

 

 

 

150,000

 

 

 

2.47

 

 

 

1.44

 

 

 

370,500

 

 

50,000

 

 

 

-

 

 

 

3.45

 

 

 

5.67

 

 

 

172,500

 

 

40,000

 

 

 

40,000

 

 

 

4.53

 

 

 

0.38

 

 

 

181,200

 

 

240,000

 

 

 

190,000

 

 

 

 

 

 

 

 

 

 

 

724,200

 

 

Stock-based compensation expense related to warrants of $41,587 and $4,127 was recorded in the six months ended June 30, 2020 and June 30, 2019, respectively. Total remaining unrecognized compensation cost related to non-vested warrants is $65,519 and is expected to be recognized over a period of 1.17 years. As of June 30, 2020, the total intrinsic value of warrants outstanding was $235,000.

 

b) Options

 

The following table summarizes the changes in options outstanding of the Company during the six-month period ended June 30, 2020:

 

 

 

Number of

 

 

Weighted Average

 

 

 

Options

 

 

Exercise Price ($)

 

Outstanding at December 31, 2019

 

 

4,169,301

 

 

 

3.88

 

Granted

 

 

835,000

 

 

 

3.60

 

Exercised

 

 

(68,882 )

 

 

3.33

 

Expired/Cancelled

 

 

(19,167 )

 

 

5.00

 

Outstanding at June 30, 2020

 

 

4,916,252

 

 

 

3.84

 

 

 

 

 

 

 

 

 

 

Exercisable at June 30, 2020

 

 

4,081,252

 

 

 

3.89

 

   

Effective April 13, 2020, the Company granted stock options to purchase 835,000 shares of common stock to various Company personnel (including directors, executives, members of management and employees) in exchange for services provided to the Company. These options vest on April 13, 2021 and expire 5 years after the vesting date, with an exercise price of $3.44 per share. The Company has calculated the estimated fair market value of these options at $1,481,709, using the Black-Scholes model and the following assumptions: term 3.5 years, stock price $3.52, exercise price $3.60, 72.94% volatility, 0.54% risk free rate, and no forfeiture rate.

 

Below is a table summarizing the options issued and outstanding as of June 30, 2020, all of which were issued pursuant to the 2011 Equity Incentive Plan (for option issuances prior to 2016) or the 2015 Stock Incentive Plan (for option issuances commencing in 2016) and which have an aggregate weighted average remaining contractual life of 3.05 years. As of June 30, 2020, an aggregate of 4,250,000 shares of common stock were authorized for issuance under the 2015 Stock Incentive Plan, of which 261,867 shares of common stock remained available for future issuance thereunder. 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

Remaining

 

 

Proceeds to

 

Number

 

 

Number

 

 

Exercise

 

 

Contractual

 

 

Company if

 

Outstanding

 

 

Exercisable

 

 

Price ($)

 

 

Life (Years)

 

 

Exercised ($)

 

 

2,717

 

 

 

2,717

 

 

 

2.35

 

 

 

0.18

 

 

 

6,385

 

 

310,000

 

 

 

310,000

 

 

 

2.50

 

 

 

0.13

 

 

 

775,000

 

 

310,000

 

 

 

310,000

 

 

 

3.00

 

 

 

0.13

 

 

 

930,000

 

 

685,000

 

 

 

685,000

 

 

 

3.25

 

 

 

4.62

 

 

 

2,226,250

 

 

17,767

 

 

 

17,767

 

 

 

3.35

 

 

 

0.62

 

 

 

59,519

 

 

835,000

 

 

 

-

 

 

 

3.60

 

 

 

5.79

 

 

 

3,006,000

 

 

20,000

 

 

 

20,000

 

 

 

3.80

 

 

 

0.88

 

 

 

76,000

 

 

1,782,837

 

 

 

1,782,837

 

 

 

4.00

 

 

 

2.31

 

 

 

7,131,348

 

 

17,768

 

 

 

17,768

 

 

 

4.35

 

 

 

1.62

 

 

 

77,291

 

 

89,163

 

 

 

89,163

 

 

 

4.38

 

 

 

3.57

 

 

 

390,534

 

 

50,000

 

 

 

50,000

 

 

 

4.80

 

 

 

2.51

 

 

 

240,000

 

 

796,000

 

 

 

796,000

 

 

 

5.00

 

 

 

2.74

 

 

 

3,980,000

 

 

4,916,252

 

 

 

4,081,252

 

 

 

 

 

 

 

 

 

 

 

18,898,327

 

 

Stock-based compensation expense related to stock options of $482,103 and $715,838 was recorded in the six months ended June 30, 2020 and June 30, 2019, respectively. Total remaining unrecognized compensation cost related to non-vested stock options is $1,165,070. As of June 30, 2020, the total intrinsic value of stock options outstanding was $1,402,929.

 

c) Restricted Stock Units (RSUs)

 

Below is a table summarizing the RSUs issued and outstanding as of June 30, 2020, all of which were issued pursuant to the 2015 Stock Incentive Plan.

 

 

 

Number of

 

 

 

 

 

RSUs

 

 

Share Price ($)

 

Outstanding at December 31, 2019

 

 

-

 

 

 

-

 

Granted

 

 

52,500

 

 

 

3.52

 

Vested

 

 

-

 

 

 

-

 

Cancelled

 

 

-

 

 

 

-

 

Outstanding at June 30, 2020

 

 

52,500

 

 

 

3.52

 

 

Effective April 13, 2020, the Company granted RSUs of 52,500 shares of common stock to various Company personnel (including a director and employee) in exchange for services provided to the Company. These RSUs vest over 2 years, with 50% vesting on each of April 13, 2021 and April 13, 2022 and will result in total compensation expense of $184,800.

 

Below is a table summarizing the RSUs issued and outstanding as of June 30, 2020 and which have an aggregate weighted average remaining contractual life of 1.29 years.

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

Remaining

 

Number

 

 

Number

 

 

Share

 

 

Contractual

 

Outstanding

 

 

Exercisable

 

 

Price ($)

 

 

Life (Years)

 

 

52,500

 

 

 

-

 

 

 

3.52

 

 

 

1.29

 

 

Stock-based compensation expense related to RSUs of $29,619 and $nil was recorded in the six months ended June 30, 2020 and June 30, 2019, respectively. Total remaining unrecognized compensation cost related to non-vested RSUs is $155,181. As of June 30, 2020, the total intrinsic value of the RSUs outstanding was $19,425.