5. Stock Options

On June 7, 2016, stockholders of the Company approved amendments to the Innodata Inc. 2013 Stock Plan. The Innodata Inc. 2013 Stock Plan, as amended and restated effective June 7, 2016, is referred to herein as the “Plan.” The number of shares of common stock of Innodata Inc. that may be delivered, purchased or used for reference purposes (with respect to stock appreciation rights or stock units) for awards granted under the Plan after June 7, 2016 is 5,858,892 (the Share Reserve). Shares subject to an option or stock appreciation right granted under the Plan after June 7, 2016 count against the Share Reserve as one share for every share granted, and shares subject to any other type of award granted under the Plan after June 7, 2016 count against the Share Reserve as two shares for every share granted. Any award, or portion of an award, under the Plan or under the Company’s 2009 Stock Plan (as amended and restated (the Prior Plan)) that expires or terminates unexercised, becomes unexercisable or is forfeited or otherwise terminated, surrendered or canceled as to any shares without delivery of shares or other consideration will be added back to the Share Reserve as one share for each such share that was subject to an option or stock appreciation right granted under the Plan or the Prior Plan, and two shares for each such share that was subject to an award other than an option or stock appreciation right granted under the Plan or the Prior Plan. If any shares are withheld, tendered or exchanged by a participant in the Plan as full or partial payment to Innodata of the exercise price under an option under the Plan or the Prior Plan or in satisfaction of a participant’s tax withholding obligations with respect to any award under the Plan or the Prior Plan, there will be added back to the Share Reserve one share for each such share that was withheld, tendered or exchanged in respect of an option or stock appreciation right granted under the Plan or the Prior Plan, and two shares for each such share that was withheld, tendered or exchanged in respect of an award other than an option or stock appreciation right granted under the Plan or the Prior Plan.

A summary of stock option activity under the Plan as of March 31, 2020, and changes during the three months then ended, are presented below:


				Weighted-
		Weighted -		Average
		Average		Remaining	Aggregate
	Number of	Exercise		Contractual Term	Intrinsic
	Options	Price		(years)	Value
Outstanding at January 1, 2020	6,833,303	$	1.86
Granted	—
Exercised	—
Forfeited/Expired	(544,303)		3.39
Outstanding at March 31, 2020	6,289,000	$	1.73	7.19	$	-

Exercisable at March 31, 2020	4,108,622	$	2.01	6.29	$	-

Vested and Expected to Vest at March 31, 2020	6,289,000	$	1.73	7.19	$	-

The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The weighted-average fair value of the options granted, and weighted-average assumptions were as follows:


	For the three months ended March 31,
	2020		2019
Weighted average fair value of options granted	$	—	$	0.64

Risk-free interest rate		—		2.55	%
Expected term (years)		—		6
Expected volatility factor		—		45	%
Expected dividends		—		None

A summary of restricted shares under the Company’s Plan as of March 31, 2020 are presented below:


		Weighted-Average
		Grant Date Fair
	Number of Shares	Value
Granted	75,000	$	1.38
Vested	(25,000)		—
Forfeited/Expired	—		—
Unvested at March 31, 2020	50,000	$	1.38

The compensation cost related to non-vested stock options and restricted stock awards not yet recognized as of March 31, 2020 totaled approximately $1.2 million. The weighted-average period over which these costs will be recognized is twenty-three months.

The stock-based compensation expense related to the Company’s various stock awards was allocated as follows (in thousands):


	For the three months ended
	March 31,
	2020		2019
Direct operating costs	$	40	$	18
Selling and administrative expenses		130		111
Total stock-based compensation	$	170	$	129