6. STOCK BASED COMPENSATION

3 Months Ended

Mar. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK BASED COMPENSATION

6.	STOCK BASED COMPENSATION

In May 2017, the Company’s shareholders approved its 2017 Stock Incentive Plan (“2017 Plan”). The 2017 Plan provides for the grant of non-qualified stock options and incentive stock options to purchase shares of the Company’s common stock and for the grant of restricted and unrestricted share grants. The 2017 Plan provides for the issuance of 3,750,000 shares of common stock. All of the Company’s employees and any subsidiary employees (including officers and directors who are also employees), as well as all of the Company’s nonemployee directors and other consultants, advisors and other persons who provide services to the Company will be eligible to receive incentive awards under the 2017 Plan. Generally stock options and restricted stock vest over a one to four-year period from the date of grant under the 2017 Plan.

The following table summarizes the stock-based compensation expense recorded in the Company’s results of operations during the three months ended March 31, 2018 and 2017 for stock options and restricted stock from the 2017 Plan and 2007 Plan, the 2007 Plan expired in March 2017 (in thousands):

		Three Months Ended March 31,
		2018				2017
Research and development		$	112			$	88
General and administrative			400				852
Selling and Marketing			34				270
		$	546			$	1,210

As of March 31, 2018, there was approximately $5.5 million of total unrecognized compensation expense related to non-vested share-based compensation arrangements that are expected to vest. This cost is expected to be recognized over a weighted-average period of 2.7 years.

The weighted average grant date fair value per share of the options granted under the plan was $2.16 and $3.01 for the three months ended March 31, 2018 and 2017, respectively.

The following table summarizes stock option activity during the three months ended March 31, 2018 (in thousands except exercise prices and contractual terms):

				Number of Shares				Weighted- Average Exercise Prices				Weighted- Average Remaining Contractual Term (In Years)				Intrinsic Value
	Outstanding at January 1, 2018				2,141			$	7.03
	Granted				335			$	5.64
	Outstanding at March 31, 2018				2,476			$	6.84				8.3			$	493
	Exercisable at March 31, 2018				1,105			$	7.15				7.71			$	119

During the three months ended March 31, 2018 the Company granted options under its 2017 Stock Incentive Plan to purchase 335,424 shares of its common stock to its employees. The fair value of these options was approximately $725,000.

The Company issues restricted stock to employees, directors and consultants and estimates the fair value based on the closing price on the day of grant. The following table summarizes all restricted stock activity during the three months ended March 31, 2018 (in thousands except per share data):

				Number of Shares				Weighted- Average Grant Date Fair Value
	Outstanding at January 1, 2018				121			$	6.90
	Granted				200			$	5.64
	Vested				(5	)		$	7.01
	Outstanding non-vested shares at March 31, 2018				316			$	6.10

During the three months ended March 31, 2018 the Company granted restricted stock awards under its 2017 Stock Incentive Plan to purchase 200,432 shares of its common stock to its employees. The fair value of these options was approximately $1.1 million at the time of grant.