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STOCK BASED COMPENSATION | 9 Months Ended
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Sep. 30, 2020
STOCK BASED COMPENSATION |
STOCK BASED COMPENSATION | 11. STOCK-BASED COMPENSATION Stock-based compensation awards consist of stock options, restricted stock units and bonus shares issued under the Company’s equity incentive plans which include: the 2013 Omnibus Incentive Plan (the “2013 Plan”) and the Amended and Restated 2004 Directors’ Stock Option and Restricted Stock Plan (the “2004 Directors’ Plan”). Upon approval of the 2013 Plan by the Company’s stockholders on June 4, 2013, the Company’s authority to grant new awards under all plans other than the 2013 Plan was terminated. On July 18, 2017, April 18, 2019 and April 28, 2020, the Company’s stockholders approved amendments to the 2013 Plan to increase the authorized number of shares of common stock available and reserved for issuance under the 2013 Plan by 20,000 shares, 66,000 and 350,000 shares, respectively and in 2017 re-approved the material terms of the performance goals under the plan. Under the 2013 Plan, the Company may grant awards of stock options, stock appreciation rights, restricted stock awards, restricted stock units (“RSUs”), unrestricted stock, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards and cash bonus awards to eligible persons. The maximum number of the Company’s common stock that may be reserved for issuance under the 2013 Plan is currently 416,278 shares of common stock, plus unissued shares under the prior plans. Equity awards under the 2013 Plan are granted from time to time at the discretion of the Compensation Committee of the Board (the “Committee”), with vesting periods and other terms as determined by the Committee with a maximum term of 10 years. The 2013 Plan is administered by the Committee, which can delegate the administration to the Board, other Committees or to such other officers and employees of the Company as designated by the Committee and permitted by the 2013 Plan. As of September 30, 2020, 58,586 shares were available for future issuances under the 2013 Plan. For the nine months ending September 30, 2020 and 2019, the Company recorded stock-based compensation expense of $169,700 and $255,000, respectively. Stock compensation expense is recorded in general and administrative expenses. In addition to the plans above, upon closing of the Company’s acquisition of Alabama Graphite in April 2018, the Company issued 50,168 replacement options and warrants to the option and warrant holders of Alabama Graphite. The number of replacement options and warrants shares was determined using the arrangement exchange rate of 0.0016. The exercise prices for the option and warrant shares were first converted for the exchange rate of 0.0016 and then converted to USD using the exchange rate on December 13, 2017 of 0.77809 (CAD to USD). The options and warrant shares were issued with the same terms and conditions as were applicable prior to the acquisition of Alabama Graphite. As of September 30, 2020, there were 2,840 replacement options outstanding but all replacement warrants have expired. Stock Options The following tables summarize stock options outstanding and changes for the three and nine-month periods ending September 30, 2020 and 2019:
|  | Three months ended |  | Three months ended
|  | September 30, 2020 |  | September 30, 2019
|  |  |  | Weighted |  |  |  | Weighted
|  | Number of |  | Average |  | Number of |  | Average
|  | Stock |  | Exercise |  | Stock |  | Exercise
|  | Options |  | Price |  | Options |  | Price
Stock options outstanding at beginning of period |  | 161,897 |  | $ | 9.25 |  | 18,546 |  | $ | 64.49
Granted |  | — |  |  | — |  | 20,942 |  |  | 19.25
Expired |  | — |  |  | — |  | (1,040) |  |  | 78.00
Canceled or forfeited |  | — |  |  | — |  | (550) |  |  | 19.25
Stock options outstanding at end of period |  | 161,897 |  | $ | 9.25 |  | 37,898 |  | $ | 39.78
Stock options exercisable at end of period |  | 36,093 |  | $ | 34.41 |  | 37,898 |  | $ | 39.78
|  | Nine months ended |  | Nine months ended
|  | September 30, 2020 |  | September 30, 2019
|  |  |  | Weighted |  |  |  | Weighted
|  | Number of |  | Average |  | Number of |  | Average
|  | Stock |  | Exercise |  | Stock |  | Exercise
|  | Options |  | Price |  | Options |  | Price
Stock options outstanding at beginning of period |  | 37,786 |  | $ | 37.42 |  | 19,170 |  | $ | 80.00
Granted |  | 125,804 |  |  | 1.59 |  | 20,942 |  |  | 19.25
Expired |  | (1,693) |  |  | 101.64 |  | (1,664) |  |  | 78.00
Canceled or forfeited |  | — |  |  | — |  | (550) |  |  | 19.25
Stock options outstanding at end of period |  | 161,897 |  | $ | 9.25 |  | 37,898 |  | $ | 39.78
Stock options exercisable at end of period |  | 36,093 |  | $ | 34.41 |  | 37,898 |  | $ | 39.78
The following table summarizes stock options outstanding and exercisable by stock option plan at September 30, 2020:
|  | Outstanding Stock Options |  | Exercisable Stock Options
|  | Number of |  | Weighted |  | Number of |  | Weighted
|  | Outstanding |  | Average |  | Stock Options |  | Average
Stock Option Plan |  | Stock Options |  | Exercise Price |  | Exercisable |  | Exercise Price
2004 Plan |  | 92 |  | $ | 1,638.00 |  | 92 |  | $ | 1,638.00
2004 Directors’ Plan |  | 3 |  |  | 10,380.00 |  | 3 |  |  | 10,380.00
2013 Plan |  | 158,962 |  |  | 6.92 |  | 33,158 |  |  | 25.47
Replacement Options-Alabama Graphite |  | 2,840 |  |  | 75.94 |  | 2,840 |  |  | 75.94
|  | 161,897 |  | $ | 9.25 |  | 36,093 |  | $ | 34.41
Restricted Stock Units Time-based and performance-based RSUs are valued using the closing share price of the Company’s common stock on the date of grant. The final number of shares issued under performance-based RSUs is generally based on the Company’s prior year performance as determined by the Compensation Committee of the Board of Directors at each vesting date, and the valuation of such awards assumes full satisfaction of all performance criteria. The following tables summarizes RSU activity for the three and nine-month periods ended September 30, 2020 and 2019:
|  | Three months ended |  | Three months ended
|  | September 30, |  | September 30,
|  | 2020 |  | 2019
|  |  |  | Weighted- |  |  |  | Weighted-
|  |  |  | Average |  |  |  | Average
|  | Number of |  | Grant Date |  | Number of |  | Grant Date
|  | RSUs |  | Fair Value |  | RSUs |  | Fair Value
Unvested RSUs at beginning of period |  | 211,497 |  | $ | 2.03 |  | 1,695 |  | $ | 70.00
Granted |  | — |  |  | — |  | — |  |  | —
Forfeited |  | — |  |  | — |  | — |  |  | —
Vested |  | — |  |  | — |  | — |  |  | —
Unvested RSUs at end of period |  | 211,497 |  | $ | 2.03 |  | 1,695 |  | $ | 70.00
|  | Nine months ended |  | Nine months ended
|  | September 30, |  | September 30,
|  | 2020 |  | 2019
|  |  |  | Weighted- |  |  |  | Weighted-
|  |  |  | Average |  |  |  | Average
|  | Number of |  | Grant Date |  | Number of |  | Grant Date
|  | RSUs |  | Fair Value |  | RSUs |  | Fair Value
Unvested RSUs at beginning of period |  | — |  | $ | — |  | 2,260 |  | $ | 70.00
Granted |  | 211,497 |  |  | 2.03 |  | — |  |  | —
Forfeited |  | — |  |  | — |  | (565) |  |  | 70.00
Vested |  | — |  |  | — |  | — |  |  | —
Unvested RSUs at end of period |  | 211,497 |  | $ | 2.03 |  | 1,695 |  | $ | 70.00

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