(4) STOCK-BASED COMPENSATION PLANS

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, 2019, 0.2 million and 0.6 million stock option awards were granted under the 2017 Stock Plan, respectively. 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, 2019,there were 2.1 million stock option awards issued and 1.2 million stock option awards exercisable under all plans. As of September 30, 2019, 3.7 million stock options remain reserved for issuance under the 2017 Stock Plan.

During the three and nine months ended September 30, 2019, 35,000 and 45,000 shares of restricted stock were granted to management under the 2017 Stock Plan, respectively. 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 of the Restricted Stock Awards typically occur quarterly over three years for the Board of Directors and quarterly over four years for management.

The following summarizes stock-based compensation expenses recorded in the consolidated statements of operations:

During the three and nine months ended September 30, 2019, the Company recorded compensation expense related to stock options and restricted stock of approximately $0.3 million and $0.6 million, respectively. During the three and nine months ended September 30, 2018, the Company recorded compensation expense of approximately $0.1 million and $0.2 million, respectively. The Company includes stock-based compensation expense in its in general and administrative expense on the accompanying consolidated statements of operations.

The Company received proceeds of approximately $34,000 and $0.2 million related to option exercises during three and nine months ended September 30, 2019, 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.

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, 2019 and 2018.


	For the Three Months				For the Nine Months
	Ended September 30,				Ended September 30,
	2019		2018		2019		2018
Expected term (years)	6.25		6.25		6.25		6.25
Risk-free interest rate	1.83	%	2.78	%	2.34	%	2.78	%
Expected volatility	121.58	%	123.05	%	121.83	%	123.05	%
Expected dividend yield	—	%	—	%	—	%	—	%

A summary of stock option activity under all equity compensation plans for the nine months ended September 30, 2019, is presented below:


				Weighted-
				Average
		Weighted-		Remaining	Aggregate
	Number of	Average		Contractual	Intrinsic
	Shares	Exercise		Term	Value
	(in thousands)	Price		(Years)	(in thousands)
Outstanding at December 31, 2018	1,885	$	0.80	6.3	$	4,085
Granted	616	$	5.62
Expired	(7)		1.00
Forfeited	(115)	$	2.47
Exercised	(253)	$	0.68
Outstanding at September 30, 2019	2,126	$	2.12	6.6	$	15,720

Exercisable at September 30, 2019	1,171	$	0.43	4.7	$	10,626

A summary of restricted stock award activity under all equity compensation plans for the nine months ended September 30, 2019, is presented below:


		Number of
		Shares
		(in thousands)
Granted but not vested at December 31, 2018		76
Granted		45
Forfeited		—
Vested		(21)
Granted but not vested at September 30, 2019		100

As of September 30, 2019, the Company had approximately $3.6 million of unrecognized compensation expense related to stock options and restricted stock awards that will be recognized over a weighted average period of approximately 3.0 years.