Note G - Stock-based Compensation

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

G. Stock-Based Compensation

The Company maintains a stock-based compensation plan (the “

Incentive Stock Plan”) that governs stock awards made to employees and directors prior to completion of the IPO.  

In

November 2014,

the Board of Directors of the Company ("the Board"), and in

April 2015,

the Company's stockholders, approved the Company's

2014

Equity Incentive Plan (the

“2014

Plan”), which became effective in

April 2015.

The

2014

Plan provides for the grant of stock options, other forms of equity compensation, and performance cash awards. The maximum number of shares of common stock that

may

be issued under the

2014

Plan is 

6,530,725

as of

September 30, 2020

.

The number of shares of common stock reserved for issuance under the

2014

Plan will automatically increase on

January 1

of each year, beginning on

January 1, 2016,

and ending on and including

January 1, 2024,

by

4%

of the total number of shares of the Company's capital stock outstanding on

December 31

of the preceding calendar year, or a lesser number of shares determined by the Board. Pursuant to the terms of the

2014

Plan, on

January 1,

2020

,

the common stock reserved for issuance under the

2014

Plan automatically increased by 

1,454,031

shares.

During 

2020,

the Company granted to certain consultants fully vested restricted stock awards ("RSAs") under the

2014

Plan. The RSAs were granted as compensation in accordance with each consultants consulting agreement for services performed during 

2020.

 For the 

three

and

nine

months ended

September 30, 2020

, RSAs were granted for a total of

22,180

and

147,379

shares of common stock.

During the

second

quarter of

2019,

the Company granted to each non-employee member of the Company's board of directors (each a "non-employee Director") 

two

separate fully vested RSAs under the

2014

Plan. The RSAs were granted in lieu of the quarterly cash compensation payable under the Company's Third Amended and Restated Non-Employee Director Compensation Policy to each non-employee Director for service as a member of the Company's board of directors, and applicable committees thereof, for the

first

and

second

quarters of

2019.

 For the

three

and

nine

months ended

September 30, 2019

, RSAs were granted for a total of

81,720

shares of common stock.

No

RSAs were granted during the

three

months ended

September 30, 2019.

During the

three

and

nine

months ended

September 30, 2020,

stock options were exercised for a total of

4,470

shares of common stock. 

No

stock options were exercised during the

 

three

and

nine

 months ended 

September 30, 2020

and

2019

.

Stock-based compensation expense recorded under the Incentive Stock Plan

and the

2014

Plan is included in the following line items in the accompanying condensed statements of operations (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Research and development	$	157	$	400	$	748	$	1,196
General and administrative		228		657		866		2,468
Severance expense		—		—		420		—
Total stock-based compensation expense	$	385	$	1,057	$	2,034	$	3,664

There was

$0.3

million of stock-based compensation expense related to performance-based awards recognized during the

three

and

nine

months ended

September 30, 2020

. There was 

no

stock-based compensation expense related to performance-based awards recognized during the

three

months ended September

30,

2020

or the 

three

and

nine

months ended

September 30, 2019

.