6. SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

NOTE 6: SHARE-BASED COMPENSATION

On July 27, 2018, we granted 300 shares of restricted stock to our Chief Financial Officer (“CFO”) who is now our current Chief Executive Officer (“CEO”) after our former officer resigned effective August 31, 2019. These shares had a fair value grant price of $0.79 per share, based on the closing price of our common stock on that day. These shares vest over three years in equal tranches on the anniversary date of his appointment to the role of the CFO, subject to continued service as an officer of the Company. For the three months ended September 30, 2019 and 2018, we recognized share based compensation expense of $20 and $14, respectively. We are amortizing the related share-based compensation of $237 over the three-year requisite service period.

On June 24, 2019, the three non-employee members of the Board of Directors (the “Board”) were each granted an option to purchase 50 shares of our common stock at a price of $0.75 per share. Fair value of these stock options was $0.44 per share at the date of grant. The options vested 25% on August 31, 2019, and the remainder is scheduled to vest in three tranches on November 30, 2019, February 29, 2020 and May 31, 2020, subject to the recipient’s continued service on the Board. Once vested, the options are exercisable until June 24, 2024.

On September 23, 2019, we granted 200 shares of restricted stock to our Chief Operating Officer (“COO”). These shares had a fair value grant price of $0.65 per share, based on the closing price of our common stock on that day. One fourth of the shares vested immediately and the remaining shares are scheduled to vest over three years in equal tranches on the anniversary date of his appointment to the role, subject to continued service as our COO. We recognized $33 in compensation expense for the quarter ended September 30, 2019 and we are amortizing the remaining share-based compensation of $64 over the three-year requisite service period as the shares vest.

On September 24, 2019, we granted our new CEO an option to purchase 150 shares of our common stock at a price of $0.65 per share. Fair value of these stock options was $0.39 per share at the date of grant. The options are scheduled to vest in two equal tranches on the first and second anniversaries of the grant subject to his continued service as our CEO. We recognized $0 in compensation expense for the quarter ended September 30, 2019 and we are amortizing the related share based compensation of $59 over the two-year requisite service period as the shares vest.

Summary of Shares of Restricted Stock

For the three months ended September 30, 2019 and 2018, we recognized a total of $55 and $5 respectively, of share based compensation related to restricted stock awards. For the nine months ended September 30, 2019 and 2018, we recognized a total of $183 and $15 respectively, of share-based compensation expense related to restricted stock awards, which is included in selling, general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations. The unamortized estimated fair value of unvested shares of restricted stock was $168 at September 30, 2019 and $222 at December 31, 2018. These costs are expected to be recognized as expense over a weighted-average period of 1.80 years.

Summary of Stock Options

For the three and nine months ended September 30, 2019, we recognized $17 in compensation expense related to outstanding stock option awards. The share-based compensation expense is recognized over the vesting period and is included in selling, general and administrative expenses in the condensed consolidated statements of operations. The estimated fair value of non-vested stock options was $108 at September 30, 2019 and $0 as of December 31, 2018. This cost is expected to be recognized as an expense over the period ending September 24, 2021.