Note 15

Stock-based compensation:

Stock Options

On October 27, 2016, the Company’s stockholders approved the Company’s adoption of the new 2016 Omnibus Incentive Stock Plan (“2016 Plan”) having 2,058,880 shares available for issuance in respect of awards made thereunder. The Company terminated the 2013 Stock Incentive Plan in October 2016. On May 29, 2018, the Company’s stockholders approved the Company’s amendment to the 2016 Plan to increase the number of the Company’s common stock available for grants under the plan by 3,134,365. As of December 31, 2018, the aggregate number of shares of common stock remaining available for issuance for awards under the 2016 Plan totaled 1,142,210.

A summary of option transactions for all of the Company’s stock options during the years ended December 31, 2018 and 2017 follows:

	Number of Stock Options			Weighted Average Exercise Price
Outstanding at January 1, 2017		900,139		$	5.11
Granted		101,250			1.46
Exercised		-			-
Expired/forfeited		(135,667	)		4.78
Outstanding at December 31, 2017		865,722			4.74
Granted		3,770,877			1.48
Exercised		-			-
Expired/forfeited		(293,834	)		2.80
Outstanding at December 31, 2018		4,342,765		$	2.02
Exercisable at December 31, 2018		948,297		$	3.78
Options expected to vest at December 31, 2018		3,394,468		$	1.53

The outstanding options at December 31, 2018, have a range of exercise prices and associated weighted remaining contractual life and weighted average exercise price, as follows:

Options Range of Exercise Prices		Outstanding Number of Shares		Weighted Average Remaining Contractual Life (years)		Weighted Average Exercise Price		Exercisable Number of Shares		Exercisable Weighted Avg. Exercise Price
$	1.11 - $5.00		3,983,127		9.06	$	1.52		588,758	$	1.49
$	5.01 - $10.00		350,000		3.25		6.21		350,000		6.21
$	10.01 - $181.00		9,638		2.93		56.65		9,538		56.35
Total			4,342,765		8.58	$	2.02		948,296	$	3.78

The weighted average remaining contractual life of exercisable options was 5.80 years and 7.84 years at December 31, 2018 and 2017, respectively.

The share price as of December 31, 2018, was $2.60 and the aggregate intrinsic value for options outstanding and exercisable was $4,355 and $694, respectively. The share price for December 31, 2017, was $1.23 and the intrinsic value for options outstanding and exercisable was $0.

Stock awards under the Company’s stock option plans have been granted with exercise prices that are no less than the market value of the stock on the date of the grant. Options granted under the plans are generally time-based or performance-based options and vesting varies accordingly (see below for specific vesting conditions).There were no performance based options granted in 2018 or 2017. Options under the plans expire up to a maximum of ten years from the date of grant. The fair value of each option award granted during the period is estimated on the date of grant using the Black-Scholes option valuation model and assumptions as noted in the following table:

	Years Ended December 31,
	2018	2017
Risk-free interest rate	2.56-2.89%	1.98 – 2.17%
Volatility	52%-55%	46%-48%
Expected dividend yield	0%	0%
Expected life	6.0 years	5.5 years
Estimated forfeiture rate	0%	0%

The expected life of the options is based on the observed and expected time to full-vesting, forfeiture and exercise. Groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. Volatility is based on comparable companies’ historical stock prices matching the expected term of the award. The risk-free rate is based on rates provided by the U.S. Treasury with a term equal to the expected life of the option. The Company has never paid dividends and does not currently anticipate paying any in the foreseeable future.

On May 10, 2017, the Company granted 11,250 options to purchase common stock to a new board director with a strike price of $2.78. The options vested during 2017 and expire ten years from the date of grant. The aggregate fair value of the options granted was $14.

On December 1, 2017, The Company granted an aggregate of 90,000 options to purchase common stock to the board directors with a strike price of $1.29. The options vest over a one year period and expire ten years from the date of grant. The aggregate fair value of the options granted was $54.

On March 30, 2018, the Company issued options to purchase 1,557,628 shares of common stock to its then Interim, now current Chief Executive Officer with a strike price of $1.12 per share. The options vest over three years and expire ten years from the date of grant. The aggregate fair value of the options granted was $950.

On May 23, 2018, the Company issued options to purchase 1,413,249 shares of common stock to its Chief Executive Officer with a strike price of $1.66 per share. The options vest over three years and expire ten years from the date of grant. The aggregate fair value of the options granted was $1,273.

There were additional grants made to management during the quarter ended June 30, 2018, totaling 800,000 at strike prices ranging from $1.66 to $1.93. The options vest over three years and expire ten years from the date of grant. The aggregate fair value of the options granted was $801.

The following table summarizes the Company’s unvested stock option activity:

	Options			Weighted Average Grant Date Fair Value
Unvested balance as of Decembr 31, 2017		322,817		$	0.65
Granted		3,770,877			0.80
Vested		(488,407	)		0.63
Forfeited/expired		(210,819	)		0.51
Unvested balance at December 31, 2018		3,394,468		$	0.82

Restricted Stock Units

In connection with the closing of the Financing, there were changes to the board of directors and the Company issued initial grants to new members as well as grants to all members as compensation. In total, the Company granted 140,097 restricted stock units to the board members at a fair value of $2.07. The restricted stock units vest quarterly over twelve months and expire ten years from the date of grant. The aggregate fair value of the restricted stock units granted was $290. Restricted stock units issued to the Chairman were cancelled in January 2019.

Stock-based compensation expense, which is included in general and administrative expense, for the years ended December 31, 2018 and 2017, was $904 and $186, respectively. As of December 31, 2018, there was $2,520 in unrecognized compensation expense, which will be recognized over a weighted average period of 1.25 years.