Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

The assumptions used in the Black-Scholes option pricing model for stock options granted for the three months ended March 31, 2019 are as follows:



Risk-Free interest rate	2.46% - 2.50%
Expected dividend yield	0	%
Expected stock price volatility	28.590	%
Expected life of options	2 - 6.25 Years
Discount for lack of marketability	8.480	%

Schedule of stock option activity

The following table summarizes the stock option activity for the three months ended March 31, 2019:



	Shares	Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2018	3,552,890	$1.57	5.06	$1,149,461
Granted⁽¹⁾	989,000	1.89
Exercised	—	—
Expired	—	—
Canceled	—	—
Outstanding at March 31, 2019	4,541,890	$1.64	5.53	$7,320,547

Exercisable at March 31, 2019	2,936,759	$1.59	4.55	$4,860,859

_________________

Notes:

(1) Represents the following stock options granted:

•

Annual share-based compensation awards on January 2, 2019, including: (a) 600,000 stock options with an exercise price of $1.87 granted to executives and key personnel, vesting upon grant, or one year anniversary, or vest annually in equal installments over four years, (b) 300,000 stock options with an exercise price of $1.87 granted to Board of Directors, vesting 25% upon grant and the remaining 75% will vest annually in equal installments over four years, and (c) 24,000 stock options with an exercise price of $1.87 granted to employees, vesting annually in equal installments over four years.


•	One-time award on January 2, 2019 of 50,000 stock options with an exercise price of $1.87 to a contractor, vesting upon one year anniversary.


•	One-time award on March 7, 2019 of 15,000 stock options with an exercise price of $3.00 to a contractor, vesting upon one year anniversary.

Schedule of non-cash stock option compensation expense

Total non-cash stock option compensation expense was allocated among the following expense categories:



	Three Months Ended March 31,
	2019		2018
	(Unaudited)		(Unaudited)
General and administrative	$	233,214	$	249,242
Research and development	76,349		20,354
Total	$	309,563	$	269,596