(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 months ended March 31, 2020, 14,000 stock option awards were granted under the 2017 Stock Plan. During the three months ended March 31, 2019, 0.3 million stock option awards were granted under the 2017 Stock Plan. At March 31, 2020, the company had 1.3 million stock options outstanding and 0.7 million exercisable under the following plans:


	Outstanding	Exercisable
	Number of Options	Number of Options
	(in thousands)	(in thousands)
Plan Category
2005 Stock Option Plan	388		388
Equity Compensation Plans not approved by Shareholders	59		30
2017 Stock Option Plan	869		238
Total	1,316	$	656

During the three months ended March 31, 2020, 165,000 shares of restricted stock were granted to the Board of Directors and management under the 2017 Stock Plan. During the three months ended March 31, 2019, 5,000 shares of restricted stock were granted. 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 is typically released quarterly over three years for the Board of Directors and annually or quarterly over four years for management.

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


	For the Three Months Ended March 31,
	2020		2019
Cost of Revenue	$	6	$	6
Sales and marketing expense		29		41
General, and administrative		462		93
Total stock based compensation expense	$	497	$	140

During the three months ended March 31, 2020, there were 14,000 options granted at a weighted average exercise price of $10.15 per share. The weighted-average grant date fair value of options granted during the three months ended March 31, 2020 was $8.88. The Company issued 165,000 shares of restricted stock to management during the three months ended March 31, 2020.

During the three months ended March 31, 2019, there were 0.3 million options granted at a weighted average exercise price of $4.37 per share. The weighted-average grant date fair value of options granted during the three months ended March 31, 2019 was $3.86. The Company issued 5,000 shares of restricted stock to management during the three months ended March 31, 2019.

The Company received proceeds of $0.2 million and $8,000 related to option exercises during the three months ended March 31, 2020 and 2019, 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 months ended March 31, 2020 and March 31, 2019.


	For the Three Months
	Ended March 31,
	2020		2019
Expected term (years)	6.79		6.25
Risk-free interest rate	1.59	%	2.62	%
Expected volatility	116.76	%	121.98	%
Expected dividend yield	—	%	—	%

A summary of stock option activity under all equity compensation plans for the three months ended March 31, 2020, 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, 2019	1,855	$	2.48	6.42	$	10,032
Granted	14	$	10.15
Forfeited	(175)	$	5.40
Exercised	(378)	$	0.58
Outstanding at March 31, 2020	1,316	$	2.72	7.18	$	10,991

Exercisable at March 31, 2020	656	$	1.00	5.81	$	6,604

A summary of restricted stock award activity under all equity compensation plans for the three months ended March 31, 2019, is presented below:


		Number of
		Shares
		(in thousands)
Granted but not vested at December 31, 2019		102
Granted		165
Vested		(7)
Granted but not vested at March 31, 2020		260

As of March 31, 2020, the Company had approximately $3.8 million of unrecognized compensation expense related to stock options and restricted stock awards that will be recognized over a weighted average period of approximately 2.5 years.