STOCK BASED COMPENSATION

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

8.	STOCK BASED COMPENSATION

In May 2017, the Company’s shareholders approved its 2017 Stock Incentive Plan (“2017 Plan”) after its 2007 Stock Incentive Plan (“2007 Plan”) had expired in March 2017. 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 shares. 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 are eligible to receive incentive awards under the 2017 Plan. Generally, stock options and restricted stock issued under the 2017 Plan vest over a period of one to four years from the date of grant.

The following table summarizes the stock-based compensation expense recorded in the Company’s results of operations during the three and nine months ended September 30, 2021 and 2020 for stock options and restricted stock granted under the 2017 Plan and the 2007 Plan (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Research and development	$	267	$	319	$	757	$	843
General and administrative		442		470		1,451		1,269
Selling and Marketing		47		40		126		112
Total	$	756	$	829	$	2,334	$	2,224

As September 30, 2021, there was approximately $6.1 million of total unrecognized compensation expense related to unvested share-based compensation arrangements. This cost is expected to be recognized over a weighted-average period of 2.3 years.

The weighted average grant date fair value per share of the options granted under the Company’s 2017 Plan was $13.77 and $15.29 for the three and nine months ended September 30, 2021, respectively. The weighted average grant date fair value per share of the options granted under Company’s 2017 plan was $7.64 and $2.80 for the three and nine months ended September 30, 2020, respectively.

The following table summarizes stock option activity during the nine months ended September 30, 2021 (in thousands except exercise prices and contractual terms):

Schedule of stock option activity
	Number of Shares			Weighted- Average Exercise Prices per Share		Weighted- Average Remaining Contractual Term (In Years)		Intrinsic Value
Outstanding at January 1, 2021		3,446		$	5.97
Granted		153		$	21.77
Exercised		(506	)	$	6.14
Forfeited		(118	)	$	4.50
Outstanding at September 30, 2021		2,975		$	6.81		6.03	$	48,544
Exercisable at September 30, 2021		2,310		$	6.47		5.36	$	38,471

During the nine months ended September 30, 2021, the Company granted options under the 2017 Plan to purchase approximately 153,000 shares of its common stock to its employees. The fair value of these options was approximately $2.3 million at the time of grant.

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 nine months ended September 30, 2021 (in thousands except per share data):


	Number of Shares			Weighted- Average Grant Date Fair Value per Share
Outstanding at January 1, 2021		642		$	4.43
Granted		89		$	21.02
Vested		(216	)	$	6.39
Forfeited		(63	)	$	5.69
Outstanding non-vested shares at September 30, 2021		452		$	6.58

During the nine months ended September 30, 2021 the Company granted approximately 89,000 restricted stock awards under the 2017 Plan to its employees and directors. The fair value of these awards was approximately $1.9 million at the time of grant.

During the nine months ended September 30, 2021, approximately 63,000 restricted stock awards were forfeited and reissued under the Company’s equity compensation plan.