XML 21 R11.htm IDEA: XBRL DOCUMENT v3.20.2

STOCK-BASED COMPENSATION

3 Months Ended

Jun. 30, 2020

STOCKHOLDERS' EQUITY

STOCK-BASED COMPENSATION

2017 Equity Incentive Plan  

In October 2017, the Company’s board of directors (the Board) approved the 2017 Equity Incentive Plan (the Plan) with 3,000,000 shares of common stock reserved for issuance. In January 2020, the Board approved an increase in the number of shares reserved for issuance by 1,000,000 shares. Under the Plan, eligible employees, directors and consultants may be granted a broad range of awards, including stock options, stock appreciation rights, restricted stock, performance-based awards and restricted stock units. The Plan is administered by the Board or, in the alternative, a committee designated by the Board. 

Stock-Based Compensation Expense 

The expense relating to stock options is recognized on a straight-line basis over the requisite service period, usually the vesting period, based on the grant date fair value. The unamortized compensation cost, as of June 30, 2020, was $2,733,904 related to stock options and is expected to be recognized as expense over a weighted-average period of approximately 2.48 years. 

During the three months ended June 30, 2020, the Company granted options to purchase 230,476 shares of its common stock to employees, directors and consultants. The options had 10-year terms, and 10,476 options vested immediately on the grant dates. The fair value of the options was determined to be $572,903 of which $101,891 was recorded as stock-based compensation expense and included in the condensed consolidated statement of operations for the three months ended June 30, 2020. 

The following assumptions were used in the fair value method calculations: 

		Three Months Ended June 30, 2020
Risk-free interest rates			.31% - .37	%
Volatility			123% - 128	%
Expected life (years)			5.0 - 6.0
Dividend yield			—

The fair values of options at the grant date were estimated utilizing the Black-Scholes valuation model, which includes simplified methods to establish the fair term of options as well as average volatility of three comparable organizations. The risk-free interest rate was derived from the Daily Treasury Yield Curve Rates, as published by the U.S. Department of the Treasury as of the grant date for terms equal to the expected terms of the options. A dividend yield of zero was applied because the Company has never paid dividends and has no intention to pay dividends in the foreseeable future. In accordance with ASU No. 2016-09, the Company accounts for forfeitures as they occur.

A summary of stock option activity under the EIP is presented below:

						Options Outstanding
										Weighted
		Shares								Average
		Available				Number of				Exercise
		for Grant				Shares				Prices
Balance at March 31, 2020			822,055				3,177,945			$	1.58
Options granted			(230,476	)			230,476				2.88
Options cancelled and returned to the Plan			833				(833	)			2.25
Balance at June 30, 2020			592,412				3,407,588			$	1.48

There were no stock options exercised during the three months ended June 30, 2020 and 2019. 

The following table summarizes the range of outstanding and exercisable options as of June 30, 2020:  

		Options Outstanding												Options Exercisable
Range of Exercise Price		Number Outstanding				Weighted Average Remaining Contractual Life (in Years)				Weighted Average Exercise Price				Number Exercisable				Weighted Average Exercise Price				Aggregate Intrinsic value
$0.66 - $3.16			3,407,587				8.9			$	1.67				1,642,550			$	0.97			$	—

The intrinsic value per share is calculated as the excess of the closing price of the common stock on the Company’s principal trading market over the exercise price of the option.

The Company is required to present the tax benefits resulting from tax deductions in excess of the compensation cost recognized from the exercise of stock options as financing cash flows in the consolidated statements of cash flows. For the three months ended June 30, 2020 and 2019, there were no such tax benefits associated with the exercise of stock options. 

X

- Definition

The entire disclosure for compensation costs, including compensated absences accruals, compensated absences liability, deferred compensation arrangements and income statement compensation items. Deferred compensation arrangements may include a description of an arrangement with an individual employee, which is generally an employment contract between the entity and a selected officer or key employee containing a promise by the employer to pay certain amounts at designated future dates, usually including a period after retirement, upon compliance with stipulated requirements. This type of arrangement is distinguished from broader based employee benefit plans as it is usually tailored to the employee. Disclosure also typically includes the amount of related compensation expense recognized during the reporting period, the number of shares (units) issued during the period under such arrangements, and the carrying amount as of the balance sheet date of the related liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 710
-URI http://asc.fasb.org/topic&trid=2127225

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 710
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6409950&loc=d3e20396-108366

+ Details

Name:	us-gaap_CompensationRelatedCostsGeneralTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_StockholdersEquityAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration