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STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

14. STOCK-BASED COMPENSATION

Under the Company's 2018 Stock Incentive Plan (the “2018 Plan”), 2017 Stock Incentive Plan (the “2017 Plan”), 2016 Stock Incentive Plan (the “2016 Plan”) and the 2012 Stock Option Plan, as amended (the “2012 Plan”) (collectively, the “Plans”), options may be granted to employees, officers, consultants, service providers and directors of the Company. On July 19, 2019, the Company’s stockholders approved an amendment to the 2018 Plan which increased the number of shares of the Company’s common stock that may be issued thereunder to a total of 175,000 shares. The Plans, as amended, provide for the issuance of a maximum of 184,216 shares of the Company’s common stock.

Options granted under the Plans have an exercise price equal to or greater than the fair value of the underlying common stock at the date of grant and become exercisable based on a vesting schedule determined at the date of grant. Typically, options granted generally become fully vested after four years. Any options that are forfeited or cancelled before expiration become available for future grants. The options expire between 5 and 10 years from the date of grant. Restricted stock awards granted under the Plans are subject to a vesting period determined at the date of grant. As of December 31, 2020, an aggregate of 6,693 of the Company's options are still available for future grant.

During the years ended December 31, 2020 and 2019, the Company did not grant any options under the Plans. Generally, options granted under the Plans become fully vested after four years. During the years ended December 31, 2020 and 2019, the Company issued 102,500 and 69,375, respectively, shares of common stock to its consultants and service providers. The grant date fair value of these shares amounted to $182,575 and $338,619 respectively, which was determined from the closing price of the Company’s common stock on the date of issuance.

The options outstanding as of December 31, 2020, have been classified by exercise price, as follows:

Outstanding														Exercisable
						Weighted
						Average				Weighted								Weighted
						Remaining				Average								Average
Exercise		Number				Contractual				Exercise				Number				Exercise
Price		Outstanding				Life (Years)				Price				Exercisable				Price
$480 - $560			894				4.95			$	537.34				592			$	534.25
$1,208 - $1,352			31				2.63			$	1,339.20				31			$	1,339.20
$480 - $1,352			925				4.87			$	564.43				623			$	574.60

Issuances outside of Plans
$1.79			850,000				9.72			$	1.79				0			$	0.00

Total Options
$480 - 1,856			850,925				9.71			$	2.40				623			$	574.60

On December 31, 2020 and 2019, the aggregate intrinsic value of stock options outstanding was $2,176,000 and nil, respectively. On December 31, 2020 and 2019, there was no aggregate intrinsic value of stock options that were exercisable. The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the fair value of the Company’s common stock as of the period-end date.

The total stock-based compensation expense related to stock options and stock awards issued pursuant to the Plans to the Company’s employees, consultants and directors, included in reported net loss for the years ended December 31, 2020 and 2019, is comprised as follows:

		Year Ended December 31,
		2020				2019
Stock-based compensation from Plans		$	260,033			$	715,877
Stock-based compensation from issuances outside of Plans			32,250				868,114
Total Stock-based compensation		$	292,283			$	1,583,991

A summary of option activity under the Company's stock option plans as of December 31, 2020 and 2019, and changes during the years ended are as follows:

							Outstanding Options
														Weighted
										Weighted				Average
		Shares								Average				Remaining				Aggregate
		Available				Number				Exercise				Contractual				Intrinsic
		for Grant				of Shares				Price				Life (years)				Value
January 1, 2019			12,695				4,328			$	576.40				7.52			$	0
Amendment to 2018 SIP			162,500				—
Restricted stock awards			(75,000	)			—
Forfeited ¹			2910				(2,940	)		$	853.47
January 1, 2020			103,105				1,388			$	636.47				6.33			$	0
Restricted stock awards			(96,875	)			—
Forfeited			463				(463	)		$	780.54
December 31, 2020			6,693				925			$	564.43				4.87			$	0

¹ Includes options that were issued pursuant to the Company’s 2002 Plan and are not available for future issuance.

As of December 31, 2020, there was $122,613 of unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under the Plans. That cost is expected to be recognized over a weighted average period of 1.61 years.

On December 31, 2020, Enertec issued Zvika Avni, the Chief Executive Officer of Enertec, a warrant to purchase 27,889 shares of Enertec common stock, at an exercise price per share of $0.01. On the date of issuance 251,000 shares of Enertec common stock were issued and outstanding. The warrant is immediately exercisable with a ten-year life. The stock-based compensation expense related to the warrant included in reported net loss for the year ended December 31, 2020 was $813,405, based on the estimated fair value of the warrant on the date of issuance. The estimated fair value of the warrant was based on observable market prices of the Company’s stock and extrapolated to Enertec based upon its relative fair value within the Company as determined by equal weighting of revenues, operating income, and net tangible assets between the Company’s subsidiaries.