Note 17. Employee Benefit Plan

The Company grants stock options and restricted stock awards under the 2017 Long-Term Incentive Compensation Plan (“2017 Plan”) and the 2018 Long-Term Incentive Plan (“2018 Plan”). The Company also maintains the 2008 Long-term Incentive Plan (“2008 Plan”). There have been no new grants of share-based compensation under the 2008 Plan during the years ended December 31, 2019 and 2018. Stock options under each long-term incentive plan are granted with an exercise price equal to the fair market value of the Company’s common stock on the date of grant, and generally vest from one to three years from the date of grant. Options are generally granted with a five-year term. The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option pricing model. The fair value of restricted stock awards is based on the fair market value at the date of grant and expensed over the vesting period, which generally range from one to three years from the date of the grant.

2008 Long-Term Incentive Compensation Plan

The 2008 Plan allowed for the grant of awards of up to 2,240,000 shares of common stock, after giving effect to a 1-for-25 reverse stock-split in 2008, in the form of incentive and non-qualified stock options, stock appreciation rights, performance units, restricted stock awards and performance bonuses. As of December 31, 2019, no further awards may be granted under the 2008 Plan and 131,268 awards remain outstanding in accordance with their terms. In addition, there are 62,180 previously granted restricted stock awards that have vested for which shares have not been issued as of December 31, 2019.

The stock option activity of the 2008 Plan for the years ended December 31, 2019 and 2018 follows:


		Weighted		Initial Fair
		Average		Market Value
	Number of	Exercise		(Outstanding
	Options	Price		Options)
Outstanding as of December 31, 2017	1,128,384	$	9.40	$	6,854
Revoked (cancelled)	(786,697)		6.33		(3,495)
Forfeitures	(175)		3.07		—
Expirations	(138,246)		25.60		(1,997)
Outstanding as of December 31, 2018	203,266		10.74		1,381
Forfeitures	(71,998)		7.72		(335)
Outstanding as of December 31, 2019	131,268	$	12.40	$	1,046

2017 Long-Term Incentive Compensation Plan

The 2017 Plan allows for the grant of awards of up to 6,500,000 shares of common stock in the form of options, restricted stock awards, stock appreciation rights (“SAR’s”), performance units and performance bonuses to eligible employees and the grant of nonqualified stock options, restricted stock awards, SAR’s and performance units to consultants and eligible directors. As of December 31, 2019, there were 57,155 shares available for grant under the 2017 Plan. As of December 31, 2019, there were 2,950,519 stock options outstanding under the 2017 Plan. In addition, there are 53,399 previously granted restricted stock awards that have vested for which shares have not been issued as of December 31, 2019.

The remaining 57,155 shares available for grant under the 2017 Plan may be issued to former directors and staff. The Company plans on filing a registration statement on Form S-8 for issuances that have been approved by stockholders, but still require registration.

The stock option activity of the 2017 Plan for the years ended December 31, 2019 and December 31, 2018 follows:


		Weighted		Initial Fair Market
		Average		Value
		Exercise		(Outstanding
	Number of Options	Price		Options)
Outstanding as of December 31, 2017	1,899,800	$	1.00	$	1,053
Granted	1,999,685		2.42		3,378
Exercised	(59,220)		1.00		(59)
Forfeitures	(374,663)		1.55		(766)
Expirations	(5,056)		1.00		(5)
Outstanding as of December 31, 2018	3,460,546	$	1.76	$	3,601
Exercised	(177,678)		1.19		(129)
Forfeitures	(294,178)		2.37		(442)
Expirations	(38,171)		1.09		(25)
Outstanding as of December 31, 2019	2,950,519	$	1.74	$	3,005

There were no stock options granted under 2017 Plan during 2019. The key assumptions included in Black-Scholes option pricing model for stock options granted in 2018 follows:


	Year-ended
	December 31, 2018
Expected Volatility		130	%
Weighted-average Expected Term (years)		2.79
Weighted-average Risk-free Interest Rate		2.69	%
Dividend yield		—
Weighted-average Fair Value at Grant-date	$	1.68

Additional information for stock options issued under the 2017 Plan follows:


	December 31, 2019			December 31, 2018
Options Outstanding
Total Options Outstanding		2,950,519			3,460,546
Weighted-average Remaining Contractual Term (Years)		1.90			2.98
Weighted-average Remaining Expected Term (Years)		1.04			1.84
Weighted-average Exercise Price	$	1.74		$	1.81
Aggregate Intrinsic Value (1)	$	—		$	1,723

Options Exercisable
Total Options Exercisable		2,066,506			841,053
Weighted-average Exercise Price	$	1.61		$	1.00
Weighted-average Remaining Contractual Term (Years)		1.70			2.24
Aggregate Intrinsic Value (1)	$	—		$	580

Unvested Options
Total Unvested Options		884,013			2,619,493
Weighted-average Exercise Price	$	2.06		$	2.01
Forfeiture rate used for this period ending		18.65	%		11.25	%

Options expected to vest
Number of options expected to vest corrected by forfeiture		719,109			2,324,885
Unrecognized share-based compensation expense	$	1,412		$	2,449
Weighting Average remaining contract Term (Years)		1.92			2.86

Exercises
Total shares delivered/issued		177,678			59,220
Weighted-average Exercise Price	$	1.19		$	1.00
Intrinsic Value of Options Exercised	$	363		$	101

⁽¹⁾

Excludes options with exercise prices that were greater than the average market price of our common shares for the period.

2018 Long-Term Incentive Compensation Plan

On October 10, 2018, the Company filed a registration statement on Form S‑8 to register the issuance and sale of the remaining 8,000,000 shares of common stock of the 2018 Long Term Incentive Compensation Plan which was previously ratified by our stockholders on September 12, 2017 at our annual meeting. This incentive plan provides for awards of up to 8,000,000 shares of common stock, in the form of options, restricted stock awards, stock appreciation rights (“SAR’s”), performance units and performance bonuses to eligible employees and the grant of nonqualified stock options, restricted stock awards, SAR’s and performance units to consultants and eligible directors.

Pursuant to the terms of the 2018 Plan, as amended, the number of shares available under the plan shall increase on the first day of each fiscal year in an amount equal to the lesser of (i) 15% of the total number of shares of common stock outstanding as of December 31st of the preceding fiscal year or (ii) such number of shares of common stock determined by the Board of Directors (the “Evergreen Increase”). As a result of the 2019 Evergreen Increase, the number of shares available under the 2018 Plan increased by 7,500,000 shares, such number determined by the Board of Directors being the lesser of (i) and (ii) as described herein (the “2018 Plan Increase”). The 2018 Plan Increase took effect upon the filing of the Registration Statement on Form S-8 on June 28, 2019.

As of December 31, 2019, there were 6,456,665 shares available for grant under the 2018 Plan. As of December 31, 2019, there were 3,842,649 stock options and 1,447,780 unvested restricted stock units outstanding under the 2018 Plan. In addition, there are 34,304 previously granted restricted stock awards that have vested for which shares have not been issued as of December 31, 2019.

There were no stock options issued under the 2018 Plan during the year ended December 31, 2018. The stock option activity under the 2018 Plan follows:


		Weighted		Initial Fair Market
		Average		Value
		Exercise		(Outstanding
Options:	Number of Options	Price		Options)
Outstanding as of December 31, 2018	—	$	—	$	—
Granted	5,649,649		2.24		10,629
Forfeitures	(1,542,000)		2.38		(2,927)
Expirations	(265,000)		3.07		(813)
Outstanding as of December 31, 2019	3,842,649	$	2.13	$	6,889

The key assumptions included in Black-Scholes option pricing model for stock options granted in 2019 follows:


	Year-ended
	December 31, 2019
Expected Volatility		121	%
Weighted-average Expected Term (years)		3.19
Weighted-average Risk-free Interest Rate		2.40	%
Dividend yield		—
Weighted-average Fair Value at Grant-date	$	1.88

Additional information for stock options issued under the 2018 Plan follows:


	December 31, 2019
Options Outstanding
Total Options Outstanding		3,842,649
Weighted-average Remaining Contractual Term (years)		4.05
Weighted-average Remaining Expected Term (years)		2.39
Weighted-average Exercise Price	$	2.13
Aggregate Intrinsic Value (1)	$	—

Options Exercisable (1)
Total Options Exercisable		100,000
Weighted-average Exercise Price	$	0.36
Weighted-average Remaining Contractual Term (years)		3.83
Aggregate Intrinsic Value	$	8

Unvested Options
Total Unvested Options		3,742,649
Weighted-average Exercise Price	$	2.18
Forfeiture Rate Used for this Period Ending		28	%

Options expected to vest
Number of options Expected to Vest Corrected by Forfeiture		2,678,081
Unrecognized Share-based Compensation Expense	$	7,625
Weighting Average Remaining Contract Term (years)		2.90

Exercises
Total shares delivered/issued		—
Weighted-average Exercise Price	$	—
Intrinsic Value of Options Exercised	$	—

⁽¹⁾

Excludes options with exercise prices that were greater than the average market price of our common shares for the period.

There were 60,696 shares of restricted stock awarded to two officers in 2019 that remain unvested as of December 31, 2019. A rollforward of restricted stock activity under the 2018 Plan follows:


		Weighted-average
		Grant Date
	Number of Shares	Fair Value
Nonvested as of December 31, 2017	—	$	—
Granted	2,000,000		3.00
Vested	(1,000,000)		3.00
Forfeited	—
Outstanding as of December 31, 2018	1,000,000	$	3.00
Granted	345,000		2.56
Vested	(950,967)		3.03
Forfeited	(333,337)		2.28
Outstanding as of December 31, 2019	60,696	$	3.92

Share-Based Compensation Expense

The Company recorded for the year ended December 31, 2019 and 2018, $11,236 and $6,783, respectively, of share-based compensation under all plans for both equity and liability classified awards. At December 31, 2019, the unrecognized expense portion of the share-based compensation awards granted under all plans was approximately $9,321 adjusted for cancellations, forfeitures and returns during the preceding period, which is expected to be recognized over a weighted-average period of 1.2 years. The fair value of the time conditioned awards that vested during 2019 and 2018 was $2,884 and $3,708, respectively.