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7. Stock Based Compensation

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Employee Stock Incentive Plan

In November 2016, our stockholders approved a stock incentive plan (the “2016 Plan”) under which we are authorized to grant awards for up to 500,000 shares of our common stock over the 10-year life of the plan.

In September 2019, our Board approved a share purchase match program to encourage ownership and further align the interests of key employees and directors with those of our shareholders. Under this program, we will match 20% of any shares of our common stock purchased on the open market by key employees and directors up to $25,000 in aggregate value per individual within any one-year period. These shares vest on the second anniversary of the date on which the matched shares were purchased.

In January 2020, we issued 10,124 shares of restricted common stock pursuant to the 2016 Plan valued at approximately $70,000 to certain members of our Board of Directors for their services in lieu of cash compensation. Of these 10,124 shares, 8,436 shares vest equally over the following three months, and the remaining 1,688 shares vest on the second anniversary of the date of grant. Also in January 2020, we issued 8,582 shares of restricted common stock pursuant to our share purchase match program valued at approximately $59,000.

In November 2019, we issued 9,833 shares of restricted common stock pursuant to the 2016 Plan valued at approximately $59,000 to certain members of our Board of Directors for their services in lieu of cash compensation. Of these 9,833 shares, 8,194 shares vest equally over the following three months, and the remaining 1,639 shares vest on the second anniversary of the date of grant. Also in November of 2019, we issued 4,202 shares of restricted common stock pursuant to the 2016 Plan valued at $25,000 to an employee in lieu of cash for a bonus, which vest equally over the following three months.

In September 2019, we issued 160,000 shares of restricted common stock to certain key employees pursuant to the 2016 Plan valued at approximately $1.1 million for services, and to encourage retention. These shares vest over four years, with 50% vesting on September 1, 2021, and 6.25% vesting each quarter thereafter for the next eight quarters. Also in September 2019, we issued 90,000 shares of restricted common stock pursuant to the 2016 Plan valued at $648,000 for services to non-employee members of our Board of Directors. These shares vest equally over approximately three years with the first vesting occurring the day before our annual stockholder meeting to be held in 2020, and the remainder vesting in equal portions on each of the first two anniversaries of that date.

The following table summarizes our restricted stock outstanding at December 31, 2019, and changes during the quarter ended March 31, 2020.

	Shares			Weighted average grant date price
Non-vested, December 31, 2019		255,634		$	7.18
Granted		18,706			7.15
Vested		(14,057	)		6.69
Non-vested, March 31, 2020		260,283			7.32

Stock options that were outstanding at Command Center were deemed to be issued on the date of the Merger. Outstanding awards continue to remain in effect according to the terms of the Command Center 2008 Plan, the 2016 Plan, and the corresponding award documents. There were approximately 24,000 stock options vested at March 31, 2020 and December 31, 2019.

The following table summarizes our stock options outstanding at December 31, 2019, and changes during the quarter ended March 31, 2020:

	Number of shares underlying options		Weighted average exercise price per share		Weighted average grant date fair value
Outstanding, December 31, 2019		29,165	$	7.20	$	3.46
Granted		-		-		-
Forfeited		-		-		-
Exercised		-		-		-
Outstanding, March 31, 2020		29,165		7.20		3.76

The following table summarizes our non-vested stock options outstanding at December 31, 2019, and changes during the quarter ended March 31, 2020:

	Number of shares underlying options		Weighted average exercise price per share		Weighted average grant date fair value
Non-vested, December 31, 2019		5,416	$	5.48	$	3.01
Granted		-		-		-
Forfeited		-		-		-
Vested		-		-		-
Non-vested, March 31, 2020		5,416		5.48		3.01

The following table summarizes information about our outstanding stock options, and reflects the intrinsic value recalculated based on the closing price of our common stock of $5.97 at March 31, 2020:

	Number of shares underlying options		Weighted average exercise price per share		Weighted average remaining contractual life (years)		Aggregate intrinsic value
Outstanding		29,165	$	7.20		4.47	$	36,171
Exercisable		23,749		7.59		3.64		32,334

At March 31, 2020, there was unrecognized stock-based compensation expense totaling approximately $1.3 million relating to non-vested options and restricted stock grants that will be recognized over the next 3.3 years.