Share-Based Compensation

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

NOTE 9: SHARE-BASED COMPENSATION

Stock Options

During the years ended December 31, 2019 and 2018, the Company granted options for the purchase of the Company’s common stock to certain employees, consultants and advisors as consideration for services rendered. The terms of the stock option grants are determined by the Company’s Board of Directors. The Company’s stock options generally vest upon the one-year anniversary date of the grant and have a maximum term of ten years.

The following summarizes the stock option activity for the years ended December 31, 2019 and 2018:

	Options Outstanding			Weighted-Average Exercise Price
Balance as of December 31, 2017		-			-
Grants of stock options		307,021			3.71
Awards Canceled		(140,636	)		3.09
Balance as of December 31, 2018		166,385		$	3.45
Grants of stock options		295,810			1.09
Cancelled stock options		(84,968	)		3.82
Balance as of December 31, 2019		377,227		$	1.86

The weighted average grant date fair value of stock options granted during the year ended December 31, 2019 was $0.72. The total fair value of stock options that granted during the year ended December 31, 2019 was approximately $211,838. The fair value of each stock option is estimated on the date of grant using the Black-Scholes-Merton option pricing model with the following weighted average assumptions for stock options granted during the year ended December 31, 2019:

Expected term (years)		2.8
Expected stock price volatility		153.58	%
Weighted-average risk-free interest rate		1.13	%
Expected dividend	$	0.00

Volatility is a measure of the amount by which a financial variable such as share price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. The Company estimates expected volatility giving primary consideration to the historical volatility of its common stock. The risk-free interest rate is based on the published yield available on U.S. Treasury issues with an equivalent term remaining equal to the expected life of the stock option. The expected lives of the stock options represent the estimated period of time until exercise or forfeiture and are based on the simplified method of using the mid-point between the vesting term and the original contractual term.

The following summarizes certain information about stock options vested and expected to vest as of December 31, 2019:

	Number of		Weighted-Average Remaining Contractual Life		Weighted- Average Exercise
	Options		(In Years)		Price
Outstanding		377,277		6.64	$	1.86
Exercisable		112,100		5.81		3.95
Expected to vest		265,127		6.99	$	0.98

As of December 31, 2019 and 2018, there was approximately $18,229 and $142,000, respectively, of total unrecognized compensation cost related to non-vested share-based compensation arrangements which is expected to be recognized within the next year.

Restricted Stock Awards

During the years ended December 31, 2019 and 2018, the Company issued restricted stock awards for shares of common stock which have been reserved for the holders of the awards. Restricted stock awards were issued to certain consultants and advisors as consideration for services rendered. The terms of the restricted stock units are determined by the Company’s Board of Directors. The Company’s restricted stock shares generally vest over a period of one year and have a maximum term of ten years.

The following summarizes the restricted stock activity for the years ended December 31, 2019 and 2018:

				Weighted-Average
	Shares			Fair Value
Balance as of December 31, 2017		-			-
Shares of restricted stock granted		235,576			3.13
Exercised		-			-
Cancelled		(109,144	)		2.47
Balance as of December 31, 2018		126,432		$	3.70
Shares of restricted stock granted		900,203			0.78
Exercised		(261,135	)		1.67
Cancelled		(241,163	)		0.95
Balance as of December 31, 2019		524,337			0.79

	December 31,
Number of Restricted Stock Awards	2019		2018
Vested		57,243		-
Non-vested		467,094		126,432

As of December 31, 2019 and 2018, there was approximately $147,743 and $291,000, respectively, of total unrecognized compensation cost related to non-vested share-based compensation, which is expected to be recognized over the next year.