Stock Based Compensation (Tables)
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9 Months Ended |
Sep. 30, 2018 |
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| Share-based Compensation [Abstract] |
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| Schedule of stock-based compensation expense |
The amount of stock-based compensation expense recognized for the three and nine months ended September 30, 2018 and 2017 as follows:
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2018 |
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2017 |
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2018 |
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2017 |
Research and development |
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$ |
32,202 |
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$ |
41,323 |
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$ |
64,077 |
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$ |
123,883 |
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General and administrative |
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843,122 |
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222,924 |
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1,599,703 |
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728,327 |
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Sales and marketing |
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69,809 |
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— |
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132,607 |
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— |
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Total stock-based compensation |
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$ |
945,133 |
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$ |
264,247 |
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$ |
1,796,387 |
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$ |
852,210 |
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| Summary of option activity |
A summary of option activity for the nine months ended September 30, 2018 is as follows:
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Options Outstanding |
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Number of shares |
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Weighted average exercise price |
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Grant date fair value of options |
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Weighted average remaining contractual term (in years) |
Balance at December 31, 2017 |
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2,823,489 |
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$ |
3.93 |
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7.29 |
Granted |
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1,504,700 |
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$ |
3.88 |
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$ |
3,475,857 |
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Exercised |
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(243,115 |
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$ |
2.08 |
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Forfeited |
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(465,887 |
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$ |
2.73 |
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Balance at September 30, 2018 |
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3,619,187 |
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$ |
4.18 |
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7.97 |
Exercisable at September 30, 2018 |
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1,832,581 |
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$ |
4.88 |
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6.72 |
Activity for the market-based options was as follows for the nine months ended September 30, 2018:
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Options Outstanding |
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Number of shares |
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Weighted average exercise price |
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Weighted average remaining contractual term (in years) |
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Aggregate intrinsic value (1) |
Balance at December 31, 2017 |
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— |
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Granted |
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500,000 |
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$ |
4.24 |
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Exercised |
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— |
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Forfeited |
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— |
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Balance at September 30, 2018 |
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500,000 |
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$ |
4.24 |
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9.49 |
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215,000 |
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Exercisable at September 30, 2018 |
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— |
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(1) The aggregate intrinsic value in the above table represents the total pre-tax amount that a participant would receive if the option had been exercised on the last day of the respective fiscal period. Options with a market value less than its exercise value are not included in the intrinsic value amount.
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| Schedule of fair value assumptions for options |
The following table shows the assumptions used to compute stock-based compensation expense for stock options granted to employees and members of the board of directors under the Black-Scholes valuation model, and the assumptions used to compute stock-based compensation expense market-based stock option grants under a Monte Carlo simulation, for nine months ended September 30, 2018:
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Service-based options |
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Expected dividend yield |
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—% |
Expected volatility |
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55 - 65% |
Expected life (in years) |
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5.0 - 6.25 |
Risk-free interest rate |
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2.53 - 2.94% |
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Market-based options |
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Expected dividend yield |
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—% |
Expected volatility |
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60% |
Expected life (in years) |
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10 |
Risk-free interest rate |
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2.84% |
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| Nonvested Restricted Stock Shares Activity |
The following table summarizes the Company's RSA grants for nine months ended September 30, 2018:
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Non-vested RSAs Outstanding |
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Number of shares |
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Weighted average grant date fair value |
Non-vested RSAs at December 31, 2017 |
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— |
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$ |
— |
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Granted |
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445,000 |
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$ |
4.27 |
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Vested |
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— |
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$ |
— |
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Forfeited |
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— |
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$ |
— |
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Non-vested RSAs at September 30, 2018 |
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445,000 |
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