XML 36 R20.htm IDEA: XBRL DOCUMENT v3.19.1
Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of valuation assumptions
The assumptions used in the Black-Scholes option pricing model for stock options granted for the year ended December 31, 2018 are as follows:
 
Years Ended December 31,
 
2018
 
2017
Risk-Free interest rate
2.24% - 2.96%
 
1.87%-2.15%

Expected dividend yield
—%
 
—%

Expected stock price volatility
27.80% -30.36%
 
70.24%-71.43%

Expected life of options
5 - 6.25 Years
 
5-6.25 Years

Discount for lack of marketability
9.35%
 
17.72
%
Schedule of stock option activity
The following table summarizes the combined stock option activity under the Company’s Equity Compensation Plans:    

Shares
 
Weighted-Average Exercise Price
 
Weighted-Average Remaining Contractual Term
 
Aggregate Intrinsic Value
Outstanding at December 31, 2016
2,158,083

 
$1.60
 
6.10
 
$214,883
Granted
660,557

 
1.61

 

 

Exercised
(6,250
)
 
0.23

 

 

Expired
(100,000
)
 
1.33

 

 

Canceled
—

 
—

 

 

Outstanding at December 31, 2017
2,712,390

 
$1.62
 
6.09
 
$69,090
Granted (1)
1,120,500

 
1.44

 

 

Exercised
(30,000
)
 
0.15

 

 

Expired
—

 
—

 

 

Canceled (2)
(250,000
)
 
1.69

 

 

Outstanding at December 31, 2018
3,552,890

 
$1.57
 
5.06
 
$1,149,461
 

 

 

 

Exercisable at December 31, 2018
2,135,598

 
$1.57
 
3.82
 
$1,149,461
_________________
Notes:
(1) Represents the following stock options granted:
•
Annual share-based compensation awards on January 2, 2018, including: (a) 492,000 stock options with an exercise price of $1.39 granted to executives and key personnel, vesting upon grant or one year anniversary, (b) 250,000 stock options with an exercise price of $1.39 granted to Board of Directors, vesting 25% upon grant and the remaining 75% will vest annually in equal installments over four years, and (c) 87,500 stock options with an exercise price of $1.39 granted to employees, vesting annually in equal installments over four years.
•
One-time awards on March 18, 2018, including: (a) 50,000 stock options with an exercise price of $1.44 granted to key personnel, vesting upon one year anniversary, (b) a sign-on award of 50,000 stock options and a conditional award of 50,000 stock options with an exercise price of $1.44 to the Chief Accounting Officer. The sign-on options will vest annually in equal installments over four years, and the conditional award will vest once certain conditions are met.
•
One-time awards on November 16, 2018, including: (a) a conditional award of 125,000 stock options with an exercise price of $1.76 granted to the Chief Accounting Officer, vesting upon certain achievements, but not before November 28, 2019, (b) 16,000 stock options with an exercise price of $1.76 granted to employees, vesting annually in equal installments over four years.
(2) Represents the cancellation of performance-based stock options granted to the Company’s former Chief Financial Officer, who separated from the Company on March 22, 2018. In addition, the Compensation Committee approved an extension of the exercise period of his vested stock options to June 30, 2019. The incremental cost of such modification, which approximated $39,000, was recognized immediately.

Schedule of non-cash stock option compensation expense
Total non-cash stock option compensation expense was allocated among the following expense categories:    
 
Years Ended December 31,
 
2018
 
2017
General and administrative
$
390,854

 
$
510,679

Research and development
76,349

 
132,751

Total
$
467,203

 
$
643,430