. Stock Compensation Plan

April

2002,

our shareholders and Board of Directors adopted the

2002

Equity Incentive Plan (

“2002

Plan”). The

2002

Plan provides for the grant of stock options to officers, employees, consultants and directors of the Company and its subsidiaries. A total of

10,000,000

shares of our common stock

may

be granted under the

2002

Plan. The

2002

Plan expired by its terms in

April 2012,

but it will remain in effect only with respect to the equity awards that have been granted prior to its expiration. As of

December 31, 2019,

there were

69,000

options outstanding under the

2002

Plan.

June 28, 2012,

the Company adopted the

2012

Equity Incentive Plan (

“2012

Plan”), with the approval of the shareholders, which provided for the grant of stock options to officers, employees, consultants and directors of the Company and its subsidiaries. The

2012

Plan provides for the granting to employees of incentive stock options within the meaning of Section

422

of the Internal Revenue Code of

1986,

as amended, and for the granting to employees and consultants of non-statutory stock options. In addition, the Plan permits the granting of stock appreciation rights, or SARs, with or independently of options, as well as stock bonuses and rights to purchase restricted stock. A total of

30,000,000

shares of the Company’s common stock

may

be granted under the

2012

Equity Incentive Plan, and all options granted under this plan had exercise prices that were equal to the fair market value on the date of grant. During

2019,

the Company did

not

grant any option awards under the

2012

Plan, with total options outstanding of

6,930,445

as of

December 31, 2019.

January 27, 2015,

the Company adopted its

2015

Equity Incentive Plan (

“2015

Plan”), which provided for the grant of stock options to officers, employees, consultants and directors of the Company and its subsidiaries. A total of

40,000,000

shares of the Company’s common stock are available for issuance under the

2015

Plan. All options granted under the

2015

Plan had exercise prices that were equal to the fair market value on the dates of grant. During

2019,

the Company did

not

grant any option awards under the

2015

Plan, with total options outstanding of

12,341,667

as of

December 31, 2019.

FASB ASC

718,

Compensation – Stock Compensation,

requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. Under ASC

718,

the Company is required to measure the cost of employee services received in exchange for stock options and similar awards based on the grant-date fair value of the award and recognize this cost in the income statement over the period during which an employee is required to provide service in exchange for the award. The Company recorded

$535

and

$924

for the years ended

December 31, 2019

and

2018,

respectively, of non-cash charges for stock compensation related to amortization of the fair value of restricted stock and unvested stock options. The total compensation costs related to non-vested awards

not

yet recognized were

$559

and

$1,278

for the years ended

December 31, 2019

and

2018,

respectively.

The fair value of each option grant is estimated on the date of the grant using the Black-Scholes option-pricing model with the assumptions noted in the following table.

	December 31,
	2019		2018

Expected volatility		-		64.92%	-	99.30%
Expected dividends					-
Expected term (in years)		-		0.50	-	6.20
Risk-free rate		-		2.07%	-	2.97%

Expected volatilities are based on historical volatility expected over the expected life of the options. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The expected term of options granted represents the period of time that options granted are expected to be outstanding. A forfeiture rate of

23.43%

was used for options granted during the year ended

December 31, 2018.

options were granted during the year ended

December 31, 2019.

The risk free rate used for the period within the expected life of the options is based on U.S. Treasury rates in effect at the time of grant.

The following table summarizes the Company’s stock option transactions for the years ended

December 31, 2019

and

2018:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
								(in thousands)
Options outstanding at December 31, 2017		34,434,994		$	0.17
Granted		9,127,175			0.17
Exercised		(5,438,716	)		0.09
Forfeited		(8,479,583	)		0.21
Expired		(812,700	)		0.29
Options outstanding at December 31, 2018		28,831,170			0.17
Granted		-			-
Exercised		(243,125	)		0.09
Forfeited		(8,796,775	)		0.18
Expired		(450,158	)		0.20
Options outstanding at December 31, 2019		19,341,112		$	0.17		6.4	$	118
Options exercisable at December 31, 2019		13,455,439		$	0.18		5.6	$	100
Options unvested at December 31, 2019		5,885,673		$	0.16		8.2	$	18
Options vested or expected to vest at December 31, 2019		17,919,954		$	0.17		6.2	$	117

The following table provides supplemental data on stock options for the years ended

December 31, 2019

and

2018:

	December 31,
	2019		2018

Weighted average grant date fair value per option granted	$	-	$	0.13
Fair value of options vested		644		911
Cash from participants to exercise stock options		21		463
Intrinsic value of options exercised		13		537

The following table summarizes the Company’s stock options outstanding and exercisable by ranges of option prices as of

December 31, 2019:

Options Outstanding										Options Exercisable
Range of Exercise Prices				Numbers of Options Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number of Options Exercisable		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price

	$0.00	-	0.10		4,093,777		4.86	$	0.07		3,550,111		4.66	$	0.07
	$0.11	-	0.38		15,247,335		6.83		0.20		9,905,328		5.98		0.21

		Total			19,341,112						13,455,439

The Company’s non-vested options at the beginning and ending of fiscal year

2019

had weighted-average grant-date fair values of

$0.14

and

$0.13

per option, respectively.

In connection with the separation of former executives and directors, the Company has modified previously granted equity awards to allow for the acceleration of vesting of equity awards, and the extension of the timing to exercise vested awards, following the respective separation dates. The Company incurred incremental stock-based compensation expense of

and

$66

during the years ended

December 31, 2019

and

2018,

respectively.