In June 2017, our stockholders approved the 2017 Stock Incentive Plan (the “2017 Stock Plan”) with a maximum of 5,000,000 shares reserved for issuance. Awards permitted under the 2017 Stock Plan include: Stock Options and Restricted Stock. Awards issued under the 2017 Stock Plan are at the discretion of the Board of Directors. As applicable, awards are granted with an exercise price equal to the closing price of our common stock on the date of grant and generally vest over four years. Restricted Stock Awards are issued to the recipient upon vesting and are not included in outstanding shares until such vesting and issuance occurs.

During the three and nine months ended September 30, 2018, 0.1 million stock option awards were granted under the 2017 Stock Plan. At September 30, 2018, 0.7 million Stock Option Awards remain issued and outstanding.

During the three and nine months ended September 30, 2018, 5,000 and 75,000 shares of restricted stock were granted to the Board of Directors and management under the 2017 Stock Plan. The fair market value of restricted shares for share-based compensation expensing is equal to the closing price of our common stock on the date of grant. The vesting on the Restricted Stock Awards are typically released quarterly over three years for the Board of Directors and annually over four years for management.

The Company previously reserved 3,000,000 shares of common stock for issuance under its 2005 Stock Option Plan (the “Option Plan”). The Option Plan expired as of December 31, 2014. Vesting provisions of the expired plan were determined by the Board of Directors. All stock options under the Option Plan expire no later than ten years from the date of grant. Options granted in 2016 and through May 2017 prior to the approval of the 2017 Stock Incentive Plan were approved by and certified by the board of directors on September 6, 2017 under the existing 2005 stock option plan. At September 30, 2018, 1.1 million options remain issued and outstanding under the 2005 Stock Option Plan.

During the three months ended September 30, 2018 and 2017, the Company recorded compensation expense related to stock options of approximately $76,000 and $9,000, respectively, all of which was recorded in selling, general and administrative expense on the accompanying condensed consolidated statements of operations.

During the nine months ended September 30, 2018 and 2017, the Company recorded share based compensation expense related to stock options of approximately $0.2 million and $46,000, respectively, all of which was recorded in selling, general and administrative expense on the accompanying condensed consolidated statements of operations.

During the three and nine months ended September 30, 2018, there were 0.1 million options granted, plus the aforementioned restricted stock grants. The options were granted at a weighted average exercise price of $2.64 per share. The weighted-average grant date fair value of options granted during the three and nine months ended September 30, 2018 was $2.34.

During the three and nine months ended September 30, 2017, the Company granted options to purchase up to 0.1 million and 0.5 million shares of common stock to employees at a weighted average exercise price of $0.92 and $0.41 per share, respectively. The weighted-average grant date fair value of options granted during the three and nine months ended September 30, 2017 were $0.90 and $0.39, respectively. The company issued 0 and 10,000 shares of restricted stock to management during the three and nine months ended September 30, 2017, respectively.

The Company received proceeds of approximately $21,000 and $0.2 million related to option exercises during the three and nine months ended September 30, 2018, respectively. No options were exercised during the three or nine months ended September 30, 2017.

The Company used the Black Scholes option pricing model to determine the fair value of stock option grants, using the following assumptions for the three and nine months ended September 30, 2018 and 2017.

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2018			2017			2018			2017
Expected term (years)		6.25			6.25			6.25			6.25
Risk-free interest rate		2.78	%		1.82	%		2.78	%		1.79	%
Expected volatility		123.05	%		123.85	%		123.05	%		124.38	%
Expected dividend yield		0.00	%		0.00	%		0.00	%		0.00	%

						Weighted-
						Average
				Weighted-		Remaining		Aggregate
	Number of			Average		Contractual		Intrinsic
	Shares			Exercise		Term		Value
	(in thousands)			Price		(Years)		(in thousands)
Outstanding at December 31, 2017		2,126		$	0.56		6.6	$	5,579
Granted		120		$	2.64
Forfeited		(86	)	$	1.31
Exercised		(353	)	$	0.44
Outstanding at September 30, 2018		1,807		$	0.67		6.4	$	4,174

Exercisable at September 30, 2018		1,235		$	0.38		5.3	$	3,215

A summary of restricted stock award activity under all equity compensation plans for the nine months ended September 30, 2018, is presented below:

	Number of
	Shares
	(in thousands)
Granted but not vested at December 31, 2017		15
Granted		75
Forfeited		-
Vested		(13	)
Granted but not vested at September 30, 2018		77

As of September 30, 2018, the Company had approximately $0.8 million of unrecognized compensation expense related to stock options and restricted stock awards that will be recognized over a weighted average period of approximately 2.8 years.