Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation (Tables)

v3.19.2
Stock Based Compensation (Tables)
6 Months Ended
Jun. 30, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]  
Schedule of stock-based compensation expense
The amount of stock-based compensation expense recognized for the three and six months ended June 30, 2019 and 2018 was as follows: 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019

2018
 
2019

2018
Research and development
 
$
120,709

 
$
20,379

 
$
178,085


$
31,876

General and administrative
 
196,211

 
549,199

 
665,336


756,581

Sales and marketing
 
209,789

 
38,853

 
279,981


62,798

Total stock-based compensation
 
$
526,709

 
$
608,431

 
$
1,123,402


$
851,255

Summary of option activity
A summary of option activity for the six months ended June 30, 2019 is as follows:
 
 
Options Outstanding
 
 
Number of shares
 
Weighted average exercise price per share
 
Weighted average grant date fair value of options
 
Weighted average remaining contractual term (in years)
Balance at December 31, 2018
 
3,746,597

 
$
4.16

 


 
7.8
Granted
 
2,381,627

 
$
5.96

 
$
7,691,720

 

Exercised
 
(74,902
)
 
$
3.44

 
 
 
 
Forfeited
 
(796,063
)
 
$
5.12

 
$
2,325,463

 

Expired
 
(80,712
)
 
$
7.95

 
$
279,812

 
 
Balance at June 30, 2019
 
5,176,547

 
$
4.79

 


 
8.3
Exercisable at June 30, 2019
 
2,321,047

 
$
4.38

 


 
7.0
The Company has granted awards that contain market-based vesting conditions. The following table summarizes the Company's market-based option activity for the six months ended June 30, 2019:

 
 
Options Outstanding
 
 
Number of shares
 
Weighted average exercise price per share
 
Weighted average remaining contractual term (in years)
 
Aggregate intrinsic value (1)
Balance at December 31, 2018
 
500,000

 
$
4.24

 
9.2
 
 
Granted
 
300,000

 
$
4.98

 
 
 
 
Exercised
 

 
 
 
 
 
 
Forfeited
 
(500,000
)
 
$
4.24

 
 
 
 
Balance at June 30, 2019
 
300,000

 
$
4.98

 
9.9
 
$
138,000

Exercisable at June 30, 2019
 

 
 
 
 
 
 
(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.
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 for market-based stock options grants under a Monte Carlo simulation for the six months ended June 30, 2019:
 
Service-based options
 
 
Expected dividend yield
 
—%
Expected volatility
 
55%
Expected life (in years)
 
5.0 - 6.25
Risk-free interest rate
 
1.76 - 2.59%
 
 
Market-based options
 
 
Expected dividend yield
 
—%
Expected volatility
 
60%
Expected life (in years)
 
10
Risk-free interest rate
 
2.32%
Nonvested Restricted Stock Shares Activity
The following table summarizes the Company's RSU activity for six months ended June 30, 2019:
 
 
RSUs Outstanding
 
 
Number of shares
 
Weighted average grant date fair value
Unvested RSUs at December 31, 2018
 
445,000

 
$
4.27

Granted
 
295,000

 
$
4.98

Vested
 
(161,250
)
 
$
4.49

Forfeited
 
(300,000
)
 
$
4.24

Unvested RSUs at June 30, 2019
 
278,750