Stock Based Compensation

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

STOCK BASED COMPENSATION

STOCK-BASED COMPENSATION

The Company maintains, as approved by the board of directors, the 2019 Stock Incentive Plan (the “Plan”) providing for the issuance of stock-based awards to employees, officers, directors or consultants of the Company. Non-qualified stock options may only be granted with an exercise price equal to the market value of the Company’s common stock on the grant date. Awards under the plans may be either vested or unvested options, or unvested restricted stock. The Plan has authorized 8,000,000 shares for issuance of stock-based awards. As of December 31, 2019, there were 8,029,778 shares available for issuance of future stock awards, which includes shares available under the 2019 and 2017 Incentive plans.

Stock-based compensation expense

The following table summarizes stock-based compensation expense:

	Years Ended December 31,
	2019		2018
Stock options	$	1,542,644	$	1,059,582
Restricted stock	437,354		—
Total stock-based compensation expense	$	1,979,998	$	1,059,582

In November 2019, the vesting for 1,000,000 stock options issued to an officer of the Company were accelerated, resulting in the remaining unvested compensation of $460,000 being recognized in the year ended December 31, 2019.

Stock options

The following table summarizes stock option activity:

	Number of Options	Weighted Average Exercise Price per Option		Weighted Average Grant Date Fair Value per Option	Weighted Average Remaining Contractual Life (Years)
Balance December 31, 2017	3,851,371	$	3.11
Granted	340,000	1.18		0.54
Exercised	(52,500)	1.24
Forfeited	—	—
Expired	(271,250)	3.22
Balance December 31, 2018	3,867,621	4.05
Granted	2,450,000	0.96		0.51
Exercised	(736,552)	0.72
Forfeited	(907,500)	4.49
Expired	(948,569)	5.01
Balance December 31, 2019	3,725,000	$	2.32
Number of options exercisable at December 31, 2019	3,069,000	$	2.35		5.4

As of December 31, 2019, unrecognized compensation expense was $0.5 million for unvested options which is expected to be recognized over the next 2.0 years.

Restricted stock

The following table summarizes restricted stock activity:

	Number of Unvested Shares	Weighted Average Grant Date Fair Value per Share
Balance December 31, 2018	—	$	—
Granted	1,805,222	2.57
Vested	(36,496)	2.74
Forfeited	—	—
Balance December 31, 2019	1,768,726	$	2.57

As of December 31, 2019, unrecognized compensation expense was $4.2 million for unvested restricted stock awards which is expected to be recognized over the next 2.3 years.