Quarterly report pursuant to Section 13 or 15(d)

Stock Options, Warrants and Restricted Common Stock

v3.20.1
Stock Options, Warrants and Restricted Common Stock
3 Months Ended
Mar. 31, 2020
Share-based Payment Arrangement [Abstract]  
Stock Options, Warrants and Restricted Common Stock

Note 9. Stock Options, Warrants and Restricted Common Stock

 

Stock based compensation:

 

The Company’s stock-based compensation expenses recognized during the three months ended March 31, 2020 and 2019, were attributable to selling, general and administrative expenses, which are included in the accompanying unaudited condensed interim consolidated statements of operations.

 

The Company recognized total stock-based compensation expense during the three months ended March 31, 2020 and 2019, granted under the Equity Plan, from the following categories (in thousands):

 

    Three Months Ended March 31,
    2020   2019
Restricted stock awards under the Plan   $ 1,914     $ 177  
Stock option awards under the Plan     —         58  
    Total stock-based compensation   $ 1,914     $ 235  

 

Restricted common stock awards:

 

A summary of the Company’s unvested restricted common stock awards activity in the three months ended March 31, 2020 is presented here:

 

    Number of Shares   Weighted Average Grant-Date
 Fair Value
  Unvested at January 1, 2020       1,524,499     $ 1.37  
          Vested       (1,623,834 )   $ 1.35  
          Granted       1,544,359     $ 1.27  
  Unvested at March 31, 2020       1,445,024     $ 1.29  

 

On February 7, 2020, the Company issued 122,377 shares of common stock as disclosed above, and 5,000 vested restricted stock units to an officer of the Company pursuant to the Equity Plan.

 

On February 7, 2020, in relation to its amended and restated employment agreement with its Chief Executive Officer and Chief Financial Officer, the Company awarded 209,790 restricted common stock units, which vest in four equal quarterly installments, with each quarterly installment vesting as of the end of each quarter pursuant to the Equity Plan.

 

On February 27, 2020, for 2020 services the Company awarded 1,212,192 restricted common stock units vesting over a one-year period to directors and certain employees of the Company issued pursuant to the Equity Plan.

 

The total fair value of restricted stock rights granted during the three months ended March 31, 2020 was approximately $2.0 million. The fair value of each restricted stock right was based upon the closing stock price on the grant date.

 

The fair value of restricted stock rights is measured based on their fair value on the date of grant and amortized over the vesting period of twelve to twenty-four months. As of March 31, 2020, there was approximately $1.7 million of unrecognized compensation cost related to unvested restricted common stock awards, which is expected to be recognized over a remaining weighted-average vesting period of approximately 10 months.

 

Stock incentive plan options:

 

As of March 31, 2020, 12,000 stock options were outstanding under the Equity Plan, with a weighted average exercise price of $4.09, and a weighted average remaining contractual term of approximately 3.5 years.

 

Other common stock purchase warrants:

 

Following is a summary of outstanding warrants that were issued outside of the Equity Plan for the three months ended March 31, 2020:

 

    Shares Underlying Options/Warrants   Weighted Average Exercise Price   Weighted Average Remaining Contractual
 Term (Years)
  Aggregate Intrinsic Value
  Outstanding at January 1, 2020       3,574,257     $ 19.48       2.9     $ —    
  Forfeited       (20,000 )   $ 3.50       —            
  Outstanding at March 31, 2020       3,554,257     $ 19.57       2.7     $ —    
                                     
  Exercisable at March 31, 2020       3,554,257     $ 19.57       2.7     $ —    

 

 

The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the Company’s closing stock price on March 31, 2020 and the exercise price, multiplied by the number of in-the-money warrants) that would have been received by the warrant holders, had all warrant holders exercised their warrants on March 31, 2020.