XML 25 R14.htm IDEA: XBRL DOCUMENT

Stock-Based Compensation

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Note 7 – Stock-Based Compensation

In addition to cash compensation, the Company may compensate certain service providers, including employees, directors, consultants, and other advisors, with equity-based compensation in the form of stock options and restricted stock awards. The Company recognizes all equity-based compensation as stock-based compensation expense based on the fair value of the compensation measured at the grant date. For stock options, fair value is calculated at the date of grant using the Black-Scholes-Merton option pricing model. For restricted stock awards, fair value is the closing stock price for the Company’s common stock on the grant date. The expense is recognized over the vesting period of the grant. For the periods presented, all stock-based compensation expense was classified as a component within selling, general and administrative expense in the Company’s consolidated statements of operations.

The amount of stock-based compensation expense is as follows (amounts in thousands):

	Three months ended March 31,
	2021		2020
Stock options	$	24	$	30
Restricted stock awards		1		1
Total	$	25	$	31

During the three months ended March 31, 2021, no stock options were awarded. During the three months ended March 31, 2020, the Company awarded stock options to purchase 5,000 shares of the Company’s common stock at an exercise price of $7.24 per share to employees of the Company (all share and dollar amounts have been adjusted to reflect the 1-for-4 reverse split that occurred in December 2020).

The Company estimated the fair value of stock options using the Black-Scholes-Merton option pricing model with the following assumptions (all share amounts have been adjusted to reflect the 1-for-4 reverse split that occurred in December 2020):

	Three months ended March 31,
	2021		2020
Number of options awarded to purchase common shares		0		5,000
Risk-free interest rate		N/A		1.56	%
Expected volatility		N/A		97.0	%
Assumed dividend yield		N/A		N/A
Expected life of options from the date of grant		N/A		9.9 years

The estimated unrecognized compensation cost from unvested awards which will be recognized ratably over the remaining vesting phase is as follows (amounts in thousands):

Years ended December 31st:	Unvested stock options		Unvested restricted stock awards		Total unrecognized compensation expense
2021 (remaining nine months)		49		-		49
2022		20		-		20
2023		4		-		4
2024		-		-		-
	$	73	$	-	$	73

Equity Incentive Plans

Our 2006 Equity Incentive Plan (the “2006 Plan”) and 2016 Equity Incentive Plan (the “2016 Plan,” and together with the 2006 Plan, the “Plans”) provide for the issuance of stock-based awards to employees, officers, directors and consultants. The Plans permit the granting of stock awards and stock options. The vesting of stock-based awards is generally subject to the passage of time and continued employment through the vesting period.

Stock Option Activity

Stock option activity under our Equity Incentive Plans is summarized as follows (all share and dollar amounts have been adjusted to reflect the 1-for-4 reverse split that occurred in December 2020):

								Weighted avg.
				Weighted avg.		Weighted avg.		remaining
	Number of			exercise price		grant date fair		contractual life		Aggregate
	awards			per share		value per share		(in years)		intrinsic value

Outstanding, December 31, 2020		105,086		$	6.25	$	6.06		5.38	$	814,090
Granted		-		$	-	$	-		-
Exercised		(17,195	)	$	2.31	$	2.25		1.27
Expired/Forfeited		(1,343	)	$	7.11	$	6.65		-
Outstanding, March 31, 2021		86,548		$	7.02	$	6.81		5.86	$	560,478
Exercisable, March 31, 2021		69,526		$	6.93	$	6.80		5.30	$	456,726
Unvested, March 31, 2021		17,022		$	7.40	$	7.16		8.11	$	103,752

The aggregate intrinsic value represents the total pre-tax intrinsic value (the aggregate difference between the closing price of our common stock on March 31, 2021 and the exercise price for the in-the-money options) that would have been received by the option holders if all the in-the-money options had been exercised on March 31, 2021.

Restricted Stock Activity

Restricted stock activity under our Equity Incentive Plans is summarized as follows (all share and dollar amounts have been adjusted to reflect the 1-for-4 reverse split that occurred in December 2020):

				Weighted avg.
	Number of			grant date
	options			fair value
Non-vested restricted shares, December 31, 2020		1,250		$	10.20
Granted		-		$	-
Vested		(1,250	)	$	10.20
Forfeited		-		$	-
Non-vested restricted shares, March 31, 2021		-		$	-