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Stock Based Compensation | 6 Months Ended
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Jun. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Stock Based Compensation | Note 6 – Stock-Based Compensation Equity Incentive Plans 2013 Equity Incentive Plan Effective on May 26, 2020, the Company’s stockholders approved the amendment and restatement of the 2013 Equity Incentive Plan to increase the number of shares reserved for issuance thereunder by 1,200,000 shares, bringing to 7,285,967 the total number of shares approved for issuance under that plan. As of June 30, 2020, 1,882,783 shares of common stock remain eligible to be issued through equity-based instruments under the 2013 Equity Incentive Plan. 2014 Non-Employee Equity Compensation Plan Effective on May 26, 2020, the Company’s stockholders approved the amendment and restatement of the 2014 Non-employee Equity Compensation Plan to increase the number of shares reserved for issuance through equity-based instruments thereunder by 800,000 shares, bringing to 1,650,000 the total number of shares approved for issuance under that plan. As of June 30, 2020, 1,072,794 shares of common stock remain eligible to be issued through equity-based instruments under the 2014 Non-Employee Equity Compensation Plan. 2015 Performance Share Unit Plan Effective on May 26, 2020, the Company’s stockholders approved the amendment and restatement of the 2015 Performance Share Unit Plan to increase the number of shares reserved for issuance through equity-based instruments thereunder by 700,000 shares, bringing to 3,410,104 the total number of shares approved for issuance under that plan. Note 6 – Stock-Based Compensation, continued Equity Incentive Plans, continued As of June 30, 2020, 1,498,274 shares of common stock remain eligible to be issued through equity-based instruments under the 2015 Performance Share Unit Plan. 2017 Equity Inducement Plan On December 28, 2017, the Board approved the 2017 Equity Inducement Plan. Under the plan, the Board reserved 600,000 shares for the grant of RSUs. These grants will be administered by the Board or a committee of the Board. These awards will be granted to individuals who (a) are being hired as an employee by the Company or any subsidiary and such award is a material inducement to such person being hired; (b) are being rehired as an employee following a bona fide period of interruption of employment with the Company or any subsidiary; or (c) will become an employee of the Company or any subsidiary in connection with a merger or acquisition. As of June 30, 2020, 213,776 shares of common stock remain available to be issued through equity-based instruments under the 2017 Equity Inducement Plan. Employee Stock Purchase Plan In April 2015, the Company’s Board approved the ESPP, under which 600,000 shares of common stock have been reserved for purchase by the Company’s employees, subject to the approval by the stockholders. On May 21, 2015, the Company’s stockholders approved the ESPP. Effective on May 26, 2020, the Company’s stockholders approved the amendment and restatement of the Employee Stock Purchase Plan to increase the number of shares reserved for issuance through equity-based instruments thereunder by 250,000 shares, bring to 850,000 the total number of shares approved for issuance under that plan. Under the ESPP, employees may designate an amount not less than 1% but not more than 10% of their annual compensation for the purchase of Company shares. No more than 7,500 shares may be purchased by an employee under the ESPP during an offering period. An offering period shall be six months in duration commencing on or about January 1 and July 1 of each year. The exercise price of the option will be the lesser of 85% of the fair market of the common stock on the first business day of the offering period and 85% of the fair market value of the common stock on the applicable exercise date. As of June 30, 2020, 271,380 shares of common stock remain eligible to be issued under the ESPP. Employees contributed $217,204 through payroll withholdings to the ESPP for the offering period ended June 30, 2020 and shares were deemed delivered on June 30, 2020. Stock Option Activity The following is a summary of the Company’s stock option activity during the six months ended June 30, 2020:
|  | Number of Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Life In Years |  |  | Intrinsic Value |
Outstanding at January 1, 2020 |  |  | 550,985 |  |  | $ | 5.67 |  |  |  | 4.3 |  |  | $ | 2,538 |
Granted |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |
Exercised |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |
Forfeited |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |
Outstanding at June 30, 2020 |  |  | 550,985 |  |  | $ | 5.67 |  |  |  | 3.8 |  |  | $ | 32,232 |
Exercisable at January 1, 2020 |  |  | 550,985 |  |  | $ | 5.67 |  |  |  | 4.3 |  |  | $ | 2,538 |
Vested |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |
Exercised |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |
Forfeited |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |
Exercisable at June 30, 2020 |  |  | 550,985 |  |  | $ | 5.67 |  |  |  | 3.8 |  |  | $ | 32,232 |
As of June 30, 2020, the unamortized value of options was $0. Note 6 – Stock-Based Compensation, continued Restricted Stock Units (“RSUs”) During the six months ended June 30, 2020, the Compensation Committee granted various employees RSUs covering 645,031 shares of common stock under the 2013 Equity Incentive Plan. The awards vest over terms ranging from two to four years. During the six months ended June 30, 2020, the Compensation Committee granted employees RSUs covering 113,000 shares of common stock under the 2017 Equity Inducement Plan. The awards vest over four years beginning on the anniversary of the grant date. As of June 30, 2020, t he un am or ti zed v a l ue of t he RSUs was $7,576,429. T he un am or ti zed am ount will be e xp e nsed ov er a weighted average p e r i od of 1.4 y ea rs. A summary of the activity related to RSUs for the six months ended June 30, 2020 is presented below:
|  | Total |  |  | Weighted Average Grant Date Fair Value |
Outstanding at January 1, 2020 |  |  | 1,821,852 |  |  | $ | 10.05 |
RSUs granted |  |  | 758,031 |  |  | $ | 1.25 |
RSUs forfeited |  |  | (128,213 | ) |  | $ | 8.66 |
RSUs vested |  |  | (629,554 | ) |  | $ | 9.11 |
Outstanding at June 30, 2020 |  |  | 1,822,116 |  |  | $ | 6.81 |
Performance Share Units (“PSUs”) Performance share units (“PSUs”) are grants that vest upon the achievement of certain performance goals. The goals are commonly related to the Company’s revenue, market capitalization or market share price of the common stock. Amortization for all PSU awards was $0 and $0 for the three months ended June 30, 2020 and 2019, respectively and amortization for all PSU awards was $(88,348) and $0 for the six months ended June 30, 2020 and 2019, respectively. A summary of the activity related to PSUs for the six months ended June 30, 2020 is presented below:
|  | Total |  |  | Weighted Average Grant Date Fair Value |
Outstanding at January 1, 2020 |  |  | 428,000 |  |  | $ | 2.09 |
PSUs granted |  |  | 267,677 |  |  |  | 1.25 |
PSUs forfeited |  |  | (62,000 | ) |  |  | 2.09 |
PSUs vested |  |  | – |  |  |  | – |
Outstanding at June 30, 2020 |  |  | 633,677 |  |  |  | 1.74 |
Note 6 – Stock-Based Compensation, continued Employee Stock Purchase Plan (“ESPP”) The most recent offering period under the ESPP started on January 1, 2020 and concluded on June 30, 2020. During the year ended December 31, 2019, there were two offering periods for the ESPP. The first offering period started on January 1, 2019 and concluded on June 30, 2019. The second offering period started on July 1, 2019 and concluded on December 31, 2019. The weighted-average grant-date fair value of the purchase option for each designated share purchased under this plan was approximately $0.57 and $2.43 for the six months ended June 30, 2020 and 2019, respectively, which represents the fair value of the option, consisting of three main components: (i) the value of the discount on the enrollment date, (ii) the proportionate value of the call option for 85% of the stock and (iii) the proportionate value of the put option for 15% of the stock. The Company recognized compensation expense for the plan of $41,308 and $122,749 for the three months ended June 30, 2020 and 2019, respectively, and $84,135 and $210,574 for the six months ended June 30, 2020 and 2019, respectively. The Company estimated the fair value of ESPP purchase options granted during the six months ended June 30, 2020 and 2019 using the Black-Scholes option pricing model. The fair values of stock options granted were estimated using the following assumptions:
|  | Six Months Ended June 30, 2020 |  |  | Six Months Ended June 30, 2019 |
Stock price |  | $ | 1.77 |  |  | $ | 5.79 |
Dividend yield |  |  | 0 | % |  |  | 0 | %
Expected volatility |  |  | 61 | % |  |  | 96 | %
Risk-free interest rate |  |  | 1.57 | % |  |  | 2.51 | %
Expected life |  | 6 months |  |  | 6 months |
Stock-Based Compensation Expense The following tables summarize total stock-based compensation costs recognized for the three and six months ended June 30, 2020 and 2019:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
RSUs |  | $ | 2,028,599 |  |  | $ | 2,675,184 |  |  | $ | 4,350,419 |  |  | $ | 5,758,751 |
PSUs |  |  | – |  |  |  | – |  |  |  | (88,348 | ) |  |  | – |
ESPP |  |  | 41,308 |  |  |  | 122,749 |  |  |  | 84,135 |  |  |  | 210,574 |
Total |  | $ | 2,069,907 |  |  | $ | 2,797,933 |  |  | $ | 4,346,206 |  |  | $ | 5,969,325 |
The total amount of stock-based compensation was reflected within the statements of operations as:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Research and development |  | $ | 1,032,049 |  |  | $ | 1,361,225 |  |  | $ | 2,133,027 |  |  | $ | 3,017,778 |
Sales and marketing |  |  | 440,335 |  |  |  | 343,945 |  |  |  | 804,793 |  |  |  | 720,993 |
General and administrative |  |  | 597,523 |  |  |  | 1,092,763 |  |  |  | 1,408,386 |  |  |  | 2,230,554 |
Total |  | $ | 2,069,907 |  |  | $ | 2,797,933 |  |  | $ | 4,346,206 |  |  | $ | 5,969,325 |

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- 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
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