• Filing Date: 2019-08-13
  • Form Type: 10-Q
  • Description: Quarterly report
v3.19.2
Share-Based Compensation (Tables)
6 Months Ended
Jun. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of valuation assumptions
The assumptions used in the Black-Scholes option pricing model for stock options granted through the six months ended June 30, 2019 are as follows:
Risk-Free interest rate
1.69% - 2.50%

Expected dividend yield
0
%
Expected stock price volatility
28.59% -37.29%

Expected life of options
2 - 6.25 Years

Discount for lack of marketability
0.0%-8.48%

Schedule of stock option activity
The following table summarizes the stock option activities for the six months ended June 30, 2019:    

Shares
 
Weighted-Average Exercise Price
 
Weighted-Average Remaining Contractual Term (Years)
 
Aggregate Intrinsic Value
Outstanding at December 31, 2018
3,552,890

 
$1.57
 
5.06
 
$1,149,461
Granted (1)
1,089,000

 
2.26

 

 

Exercised (2)
(533,500
)
 
1.59

 

 

Expired

 

 

 

Canceled

 

 

 

Outstanding at June 30, 2019
4,108,390

 
$1.75
 
6.04
 
$18,532,876
 

 

 

 

Exercisable at June 30, 2019
2,848,573

 
$1.65
 
4.79
 
$13,139,047
_________________
Notes:
(1) Represents the following stock options granted:
Annual share-based compensation awards on January 2, 2019, including: (a) 600,000 stock options with an exercise price of $1.87 per share granted to executives and key personnel, vesting upon grant, or one year anniversary, or vest annually in equal installments over four years, (b) 300,000 stock options with an exercise price of $1.87 per share granted to the Board of Directors, vesting 25% upon grant and the remaining 75% will vest annually in equal installments over four years, and (c) 24,000 stock options with an exercise price of $1.87 per share granted to employees, vesting annually in equal installments over four years.    
One-time awards granted on (a) January 2, 2019 of 50,000 stock options with an exercise price of $1.87 per share granted to a contractor, vesting upon one year anniversary, (b) March 7, 2019 of 15,000 stock options with an exercise price of $3.00 per share granted to a contractor, vesting upon one year anniversary, (c) June 25, 2019 of 75,000 stock options with an exercise price of $5.83 per share granted to three members of the Board of Directors, vesting upon one year anniversary, and (d) June 28, 2019 of 25,000 stock options with an exercise price of $6.26 per share granted to the Chief Financial Officer, vesting immediately.
(2) Represents the following stock options exercised:
A total of 533,500 stock options exercised with a weighted average market price of $5.03, including (a) net share exercise of 440,000 stock options resulting in the issuance of 304,171 shares of common stock, and surrender of 135,829 shares, and (b) 93,500 stock options exercised with cash payment.

Schedule of non-cash stock option compensation expense
Total non-cash stock option compensation expense was allocated among the following expense categories:    
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
General and administrative
$
555,455

 
$
54,896

 
$
839,089

 
$
304,138

Research and development
25,148

 
18,529

 
51,077

 
38,883

Total
$
580,603

 
$
73,425

 
$
890,166

 
$
343,021