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Compensation Plans | 6 Months Ended
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Jun. 30, 2020
Share-based Payment Arrangement [Abstract] |
Compensation Plans | 10. Compensation Plans The Company provides stock-based compensation in the form of (a) stock awards to employees and directors, comprised of restricted stock awards and restricted stock units (collectively referred to as the “Restricted Stock Awards”), (b) stock option grants to employees directors and consultants (referred to as the “Common Stock Awards”) (c) stock option awards, restricted stock awards, unrestricted stock awards, and stock appreciation rights to employees, directors and consultants (collectively the “Common Equity Awards”), (d) stock option awards outside the 2016 Stock Incentive Plan and 2019 Equity Incentive Plan to certain officers, directors and employees (referred to as the “Outside Options”), (e) common stock warrants to the Company’s channel partners (referred to as the “Channel Partner Warrants”), and (f) common stock warrants to ABG-SI, LLC (referred to as the “ABG Warrants”). Stock-based compensation and equity-based expense charged to operations or capitalized during the three months and six months ended June 30, 2020 and 2019 are summarized as follows:
|  | Restricted |  |  | Common |  |  | Common |  |  |  |  |  | Channel |  |  |  |  |  |  |
|  | Stock |  |  | Stock |  |  | Equity |  |  | Outside |  |  | Partner |  |  | ABG |  |  |  |
|  | Awards |  |  | Awards |  |  | Awards |  |  | Options |  |  | Warrants |  |  | Warrants |  |  | Totals |
During the Three Months Ended June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue |  | $ | 35,750 |  |  | $ | 27,970 |  |  | $ | 1,073,674 |  |  | $ | 1,967 |  |  | $ | 27,623 |  |  | $ | - |  |  | $ | 1,166,984 |
Selling and marketing |  |  | 298,187 |  |  |  | 23,783 |  |  |  | 701,925 |  |  |  | 43,489 |  |  |  | - |  |  |  | - |  |  |  | 1,067,384 |
General and administrative |  |  | 135,332 |  |  |  | 138,156 |  |  |  | 819,916 |  |  |  | 95,394 |  |  |  | - |  |  |  | 360,289 |  |  |  | 1,549,087 |
Total costs charged to operations |  |  | 469,269 |  |  |  | 189,909 |  |  |  | 2,595,515 |  |  |  | 140,850 |  |  |  | 27,623 |  |  |  | 360,289 |  |  |  | 3,783,455 |
Capitalized platform development |  |  | 75,709 |  |  |  | 80,608 |  |  |  | 341,642 |  |  |  | 1,652 |  |  |  | - |  |  |  | - |  |  |  | 499,611 |
Total stock-based compensation |  | $ | 544,978 |  |  | $ | 270,517 |  |  | $ | 2,937,157 |  |  | $ | 142,502 |  |  | $ | 27,623 |  |  | $ | 360,289 |  |  | $ | 4,283,066 |
During the Three Months Ended June 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue |  | $ | 26,526 |  |  | $ | 6,965 |  |  | $ | 131,057 |  |  | $ | 149 |  |  | $ | 6,561 |  |  | $ | - |  |  | $ | 171,258 |
Selling and marketing |  |  | - |  |  |  | 25,995 |  |  |  | 120,036 |  |  |  | 25,305 |  |  |  | - |  |  |  | - |  |  |  | 171,336 |
General and administrative |  |  | 859,222 |  |  |  | 395,087 |  |  |  | 931,393 |  |  |  | 44,695 |  |  |  | - |  |  |  | 67,307 |  |  |  | 2,297,704 |
Total costs charged to operations |  |  | 885,748 |  |  |  | 428,047 |  |  |  | 1,182,486 |  |  |  | 70,149 |  |  |  | 6,561 |  |  |  | 67,307 |  |  |  | 2,640,298 |
Capitalized platform development |  |  | 194,353 |  |  |  | 42,793 |  |  |  | 165,030 |  |  |  | 2,146 |  |  |  | - |  |  |  | - |  |  |  | 404,322 |
Total stock-based compensation |  | $ | 1,080,101 |  |  |  | 470,840 |  |  | $ | 1,347,516 |  |  | $ | 72,295 |  |  | $ | 6,561 |  |  | $ | 67,307 |  |  | $ | 3,044,620 |
During the Six Months Ended June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue |  | $ | 73,326 |  |  | $ | 97,766 |  |  | $ | 2,083,266 |  |  | $ | 3,173 |  |  | $ | 35,662 |  |  | $ | - |  |  | $ | 2,293,193 |
Selling and marketing |  |  | 597,402 |  |  |  | 59,511 |  |  |  | 1,380,204 |  |  |  | 98,867 |  |  |  | - |  |  |  | - |  |  |  | 2,135,984 |
General and administrative |  |  | 158,252 |  |  |  | 309,828 |  |  |  | 1,575,163 |  |  |  | 150,577 |  |  |  | - |  |  |  | 720,578 |  |  |  | 2,914,398 |
Total costs charged to operations |  |  | 828,980 |  |  |  | 467,105 |  |  |  | 5,038,633 |  |  |  | 252,617 |  |  |  | 35,662 |  |  |  | 720,578 |  |  |  | 7,343,575 |
Capitalized platform development |  |  | 145,992 |  |  |  | 121,765 |  |  |  | 597,643 |  |  |  | 4,263 |  |  |  | - |  |  |  | - |  |  |  | 869,663 |
Total stock-based compensation |  | $ | 974,972 |  |  | $ | 588,870 |  |  | $ | 5,636,276 |  |  | $ | 256,880 |  |  | $ | 35,662 |  |  | $ | 720,578 |  |  | $ | 8,213,238 |
During the Six Months Ended June 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue |  | $ | 61,901 |  |  | $ | 27,184 |  |  | $ | 131,057 |  |  | $ | 1,278 |  |  | $ | 18,909 |  |  | $ | - |  |  | $ | 240,329 |
Selling and marketing |  |  | 34,393 |  |  |  | 47,940 |  |  |  | 120,036 |  |  |  | 77,251 |  |  |  | - |  |  |  | - |  |  |  | 279,620 |
General and administrative |  |  | 1,574,859 |  |  |  | 799,517 |  |  |  | 932,285 |  |  |  | 66,008 |  |  |  | - |  |  |  | 67,307 |  |  |  | 3,439,976 |
Total costs charged to operations |  |  | 1,671,153 |  |  |  | 874,641 |  |  |  | 1,183,378 |  |  |  | 144,537 |  |  |  | 18,909 |  |  |  | 67,307 |  |  |  | 3,959,925 |
Capitalized platform development |  |  | 332,309 |  |  |  | 72,785 |  |  |  | 165,030 |  |  |  | 2,146 |  |  |  | - |  |  |  | - |  |  |  | 572,270 |
Total stock-based compensation |  | $ | 2,003,462 |  |  |  | 947,426 |  |  | $ | 1,348,408 |  |  | $ | 146,683 |  |  | $ | 18,909 |  |  | $ | 67,307 |  |  | $ | 4,532,195 |
Unrecognized compensation expense related to the stock-based compensation awards and equity-based awards as of June 30, 2020 was as follows:
|  | Restricted Stock Awards |  |  | Common Stock Awards |  |  | Common Equity Awards |  |  | Outside Options |  |  | Channel Partner Warrants |  |  | ABG Warrants |  |  | Totals |
Unrecognized compensation expense |  | $ | 902,489 |  |  | $ | 1,230,827 |  |  | $ | 26,166,996 |  |  | $ | 464,309 |  |  | $ | 1,011 |  |  | $ | 3,942,598 |  |  | $ | 32,708,230 |
Weighted average period expected to be recognized (in years) |  |  | 0.69 |  |  |  | 0.87 |  |  |  | 2.27 |  |  |  | 1.68 |  |  |  | 0.25 |  |  |  | 2.88 |  |  |  | 2.24 |

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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