During the three months ended March 31, 2020, a total of 2,260,505 options to purchase Common Stock, with an aggregate fair market value of approximately $13.3 million, were granted to employees, officers and a director of the Company. Options have a term of 10 years from the grant date. Options granted to employees, officers and directors vest ratably over a three-year period. The fair value of each option is amortized as compensation expense evenly through the vesting period.

The fair value of each option award is estimated on the grant date using the Black-Scholes valuation model that uses assumptions for expected volatility, expected dividends, expected term, and the risk-free interest rate. Expected volatilities are based on implied volatilities from historical volatility of the Common Stock, and other factors estimated over the expected term of the options.

Expected term of options granted is derived using the “simplified method” which computes expected term as the average of the sum of the vesting term plus contract term. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the period of the expected term.

The key assumptions used in determining the fair value of options granted during the three months ended March 31, 2020 follows:


Expected price volatility			59.00%-61.76%
Risk-free interest rate			0.51%-1.68%
Weighted average expected life in years			6 years
Dividend yield			—


	Number of shares	Weighted average exercise price per share		Aggregate intrinsic value
Outstanding at January 1, 2020	5,496,971	$	3.64	$	15,455
Granted in 2020:
Officers and Directors	1,074,998	6.08
Employees	1,185,517	5.67
Exercised	(107,287)	3.15
Forfeitures	(171,060)	3.68
Outstanding at March 31, 2020	7,479,139	$	4.32	$	3,336

As of March 31, 2020, options exercisable totaled 2,369,440. There are approximately $12.7 million of unrecognized compensation costs related to non-vested share-based compensation awards, including options and restricted stock units (“RSUs”) granted. These costs will be expensed through 2023.

During the three months ended March 31, 2020, a cumulative total of 229,769 RSUs were granted to the Company’s executive officers, a member of senior management, and a director with a fair market value of approximately $1.3 million. The fair value of restricted units is determined using quoted market prices of the Common Stock and the number of shares expected to vest. RSU grants are time-based, all of which generally vest from a one to three-year period.


	Number of restricted shares	Weighted average fair market value per RSU
Outstanding at January 1, 2020	1,648,559	$	3.86
Granted:
Executive officers	201,314	5.52
Directors	16,000	4.46
Employees	12,455	5.52
Vested	(459,670)	4.36
Forfeitures	(407,217)	3.45
Outstanding at March 31, 2020	1,011,441	$	3.66

The Company has granted warrants to purchase shares of Common Stock. Warrants may be granted to affiliates in connection with certain agreements. There were no warrants issued during the three months ended March 31, 2020 and as of March 31, 2020, a cumulative of 2,136,019 warrants remain outstanding.

During the three months ended March 31, 2020, 175 shares of Series B Preferred Stock (“Series B”) were converted into 972,222 shares of Common Stock. As of March 31, 2020, 443 shares of Series B are outstanding.

During the three months ended March 31, 2020, 2,093,155 shares of Series A Preferred Stock (“Series A”) were converted on a one-for-one basis into shares of Common Stock. There are no remaining outstanding shares of Series A as of March 31, 2020.


	Three months ended March 31,
	2020		2019
Basic:
Net income (loss) attributable to common stockholders	$	4,966	$	(3,833)
Weighted average common shares outstanding	97,118,267		71,344,831
Basic earnings (loss) per common share	$	0.05	$	(0.05)
Diluted:
Effect of dilutive securities:
Net income (loss) attributable to common stockholders, diluted	$	4,966	$	(3,833)
Weighted average common shares outstanding	97,118,267		71,344,831
Effect of dilutive options and warrants	9,847,495		—
Dilutive weighted average common shares outstanding	106,965,762		71,344,831
Diluted earnings (loss) per common share	$0.05		$(0.05)

During the three months ended March 31, 2020, outstanding stock options, RSUs, warrants and preferred shares of 9,847,495 were included in the computation of diluted earnings per common share. During the three months ended March 31, 2019, outstanding stock options, RSUs, warrants and preferred shares of 24,743,605 were not included in the computation of diluted earnings per common share, because to do so would have had an antidilutive effect.