Note 14

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, 2020, the aggregate number of shares of common stock remaining available for issuance for awards under the 2016 Plan totaled 41,774.

A summary of option transactions for all of the Company’s stock options during the years ended December 31, 2020, and 2019 follows:

	Number of Stock Options			Weighted Average Exercise Price
Outstanding at January 1, 2019		4,342,765		$	2.02
Granted		875,000			2.46
Exercised		(86,250	)		1.74
Expired/forfeited		(223,477	)		6.43
Outstanding at December 31, 2019		4,908,038			1.90
Granted		400,000			1.46
Exercised		(15,000	)		1.29
Expired/forfeited		(150	)		170.00
Outstanding at December 31, 2020		5,292,888		$	1.87
Exercisable at December 31, 2020		3,442,501		$	1.87
Options expected to vest at December 31, 2020		1,850,387		$	1.86

The outstanding options at December 31, 2020, 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 Average Exercise Price
$	1.11 - $2.00		4,185,877		7.59	$	1.47		2,918,323	$	1.43
$	2.01 - $5.00		941,000		8.67		2.52		358,267		2.61
$	5.01 - $181.00		166,011		4.54		8.07		165,911		8.03
Total			5,292,888		7.69	$	1.87		3,442,501	$	1.87

The weighted average remaining contractual life of exercisable options was 7.30 years and 8.03 years at December 31, 2020, and 2019, respectively.

The share price as of December 31, 2020, was $1.50 and the aggregate intrinsic value for options outstanding and exercisable was $611 and $546, respectively. The intrinsic value of the options that were exercised was $3 during the year ended December 31, 2020. The share price for December 31, 2019, was $2.08 and the intrinsic value for options outstanding and exercisable was $2,300 and $1,156, respectively.

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 2020 or 2019. 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,
	2020	2019
Risk-free interest rate	.53%	1.66%
Volatility	94%	71%
Expected dividend yield	0%	0%
Expected life	6.0 years	6.0 years

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 Company historical volatility and 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.

For the year ended December 31, 2019, 86,250 of options were exercised in a cashless exercise at a weighted average exercise price of $1.74 which resulted in the issuance of 36,410 of shares of common stock. For the year ended December 31, 2020, 15,000 of options were exercised at a weighted average exercise price of $1.29.

On November 21, 2019, the Company granted options to purchase 300,000 shares of common stock to its Chief Executive Officer, 150,000 shares of common stock to its Chief Financial Officer and 425,000 in additional grants to management at a strike price of $2.46. The options vest over three years and expire ten years from the date of grant. The aggregate fair value of the options granted was $1,361.

On November 13, 2020, the Company granted options to purchase 150,000 shares of common stock to its Chief Financial Officer and 250,000 in additional grants to management at a strike price of $1.46. The options vest over three years and expire ten years from the date of grant. The aggregate fair value of the options granted was $443.

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

	Options			Weighted Average Grant Date Fair Value
Unvested balance as of January 1, 2019		3,394,468		$	0.82
Granted		875,000			1.56
Vested		(1,265,956	)		0.78
Forfeited/expired		-			-
Unvested balance as of December 31, 2019		3,003,512		$	1.05
Granted		400,000			1.11
Vested		(1,553,125	)		0.96
Forfeited/expired		-			-
Unvested balance at December 31, 2020		1,850,387		$	1.15

Restricted Stock Units

In connection with the closing of an equity financing in May 2018, 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. The aggregate fair value of the restricted stock units granted was $290. Restricted stock units issued to the Chairman were cancelled in January 2019.

On November 21, 2019, the Company granted 77,237 restricted stock units to certain board members at a fair value of $2.46. The restricted stock units vest quarterly over twelve months. The aggregate fair value of the restricted stock units granted was $190.

Stock-based compensation expense, which is included in general and administrative expense, for the years ended December 31, 2020, and 2019, was $1,633 and $1,195, respectively. As of December 31, 2020, there was $1,715 in unrecognized compensation expense, which will be recognized over a weighted average period of 1.05 years.

Restricted stock unit unvested are summarized in the following table:

	Number of restricted stock units			Weighted Average Grant Date Fair Value
Unvested balance at January 1, 2019		70,049		$	2.07
Granted		77,237			2.46
Vested/settled		(60,387	)		2.07
Forfeited/expired		(9,662	)		2.07
Unvested balance at December 31, 2019		77,237		$	2.46
Granted		-			-
Vested/settled		(68,091	)		2.46
Forfeited/expired		(9,146	)		2.46
Unvested balance at December 31, 2020		-		$	-

At December 31, 2020 and 2019, restricted stock units vested but not issued were 88,194 and 91,787, respectively.