XML 31 R21.htm IDEA: XBRL DOCUMENT
v3.20.1

Stock-Based Compensation | 12 Months Ended
--- | ---
Dec. 31, 2019
Share-based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | NOTE 15: STOCK-BASED COMPENSATION A summary of outstanding options, including non-employee directors, is included below:
|  |  |  |  | Weighted |  |  |  |  |  |  |  |  |  |
|  |  |  |  | Average |  |  | Weighted |  |  |  |  |  | Weighted |
|  |  |  |  | Remaining |  |  | Average |  |  |  |  |  | Average |
Range of Exercise |  | Number |  |  | Contractual |  |  | Exercise |  |  | Options |  |  | Exercise |
Prices between |  | Outstanding |  |  | Life |  |  | Price |  |  | Exercisable |  |  | Price |
$0.01 - $5.39 |  |  | 25,000 |  |  |  | 9.86 |  |  | $ | 1.88 |  |  |  | - |  |  | $ | - |
$5.40 - $19.50 |  |  | 287,341 |  |  |  | 6.04 |  |  | $ | 8.35 |  |  |  | 250,257 |  |  | $ | 8.45 |
$19.51 - $23.70 |  |  | 1,000 |  |  |  | 4.04 |  |  |  | 23.70 |  |  |  | 1,000 |  |  | $ | 23.70 |
$23.71 - $367.50 |  |  | 519 |  |  |  | 2.58 |  |  |  | 112.30 |  |  |  | 519 |  |  | $ | 112.30 |
|  |  | 313,860 |  |  |  | 6.33 |  |  | $ | 8.06 |  |  |  | 251,776 |  |  |  |  |
|  | Options |  |  | Weighted Average Exercise |
|  | Outstanding |  |  | Price |
Balance, December 31, 2018 |  |  | 288,860 |  |  | $ | 8.59 |
Granted |  |  | 25,000 |  |  |  | 1.88 |
Exercised |  |  | - |  |  |  | - |
Forfeited or expired |  |  | - |  |  |  | - |
Balance, December 31, 2019 |  |  | 313,860 |  |  | $ | 8.06 |
The weighted average remaining contractual life for options exercisable is 5.68 years as of December 31, 2019. Valuation Information for Stock-Based Compensation For purposes of determining estimated fair value under FASB ASC 718-10, Stock Compensation, the Company computed the estimated fair values of stock options using the Black-Scholes model. On November 7, 2019, the Company granted 10-year options to purchase an aggregate of 25,000 shares of its common stock to one non-employee director. The options vest over 3 years and have an exercise price of $1.88, the market value of the Company's common stock on the grant date. The fair value of the options on the grant date was $1.19 and was determined using the Black-Scholes model. These values were calculated using the following weighted average assumptions:
Risk-free interest rate |  |  | 1.92 | %
Expected term |  |  | 6.25 years |
Expected price volatility |  |  | 68.77 | %
Dividend yield |  |  | 0 | %
On September 7 and September 20, 2018, the Company granted 10-year options to purchase an aggregate of 33,334 shares of its common stock to two employees, 16,667 of which were granted to an Officer. The options vest over 4 years and have an exercise price of $7.50. The fair value of the options on the grant date was $4.58 and was determined using the Black-Scholes model. These values were calculated using the following weighted average assumptions:
Risk-free interest rate |  |  | 2.82 – 2.96 | %
Expected term |  |  | 6.25 years |
Expected price volatility |  |  | 63.45 | %
Dividend yield |  |  | 0 | %
Stock-based compensation expense is based on awards ultimately expected to vest. ASC 718-10-55 allows companies to either estimate forfeitures at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates or elect to account for forfeitures as they occur by reversing compensation cost when the award is forfeited. Our accounting policy is to account for forfeitures as they occur by reversing compensation cost in the period in which forfeitures occur. Stock Compensation Expense Information ASC 718-10, Stock Compensation, requires measurement and recognition of compensation expense for all stock-based payments including warrants, stock options, restricted stock grants and stock bonuses based on estimated fair values. Under the Amended and Restated 2006 Equity Incentive Plan, the Company reserved 1,720,000 shares for purchase by the Company's employees and under the Amended and Restated 2006 Non-Employee Director Stock Option Plan the Company reserved 700,000 shares for purchase by the Company's employees. There are 12,186 options outstanding under the 2006 Equity Incentive Plan. In October 2014, the Company's shareholders approved the 2014 Stock Incentive Plan, under which 7,390,355 shares were reserved for purchase by the Company's employees. In August 2018, a special meeting of shareholders was held in which the shareholders voted to amend the Company's 2014 Stock Incentive Plan to increase the reserve of shares authorized for issuance thereunder, from 7,390,355 shares to 18,000,000 shares. There are 301,674 options outstanding under the 2014 Stock Incentive Plan. Compensation expense recognized for the issuance of stock options for the years ended December 31, 2019 and 2018 of $447 and $1,383, respectively, was included in general and administrative expense in the Consolidated Financial Statements. At December 31, 2019, there was approximately $174 of total unrecognized compensation expense related to unvested share-based awards. Generally, this expense will be recognized over the next three years and will be adjusted for any future forfeitures as they occur. Stock-based compensation expense is based on awards ultimately expected to vest. ASC 718-10-55 allows companies to either estimate forfeitures at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates or elect to account for forfeitures as they occur by reversing compensation cost when the award is forfeited. Our accounting policy is to account for forfeitures as they occur by reversing compensation cost in the period in which forfeitures occur. On September 20, 2018, the Compensation Committee of the Board of Directors proposed, and the Board of Directors approved, an aggregate award of 166,667 shares of common stock to our current CEO in light of performance and growth of certain key customer relationships. Of those shares granted, 133,334 were deemed to be awarded and fully vested as of such date, with the remaining 33,333 shares restricted to vest upon the Company's recognition in accordance with GAAP of approximately $6,200 of revenue which was deferred on the Company's balance sheet. During 2018, the Company recorded compensation expense for those vested awards based on the grant-date close price of the Company's common stock, or $7.50, resulting in a non-cash compensation expense in the period of $1,000. During 2019, the conditions were met for those remaining shares to vest and the Company recorded compensation expense of $250 based on the grant-date close price of the Company's common stock, or $7.50. On December 31, 2018, the Company recorded $35 in additional compensation expense for the accelerated vesting of outstanding, unvested stock options in conjunction with the separation agreement executed between the Chief Operating Officer and the Company during the year ended December 31, 2018.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration