NOTE 17 - SHARE BASED AND OTHER COMPENSATION

On April 20, 2016, the Company’s Board and the Compensation Committee of the Board approved the Company’s 2016 Omnibus Incentive Plan (the “2016 Plan”). As of December 31, 2019, 5.4 million shares of the 18 million shares of the Company’s common stock authorized for awards under the 2016 Plan remained available for future issuances. The Company generally issues new shares to satisfy awards under employee stock based payment plans. The Company no longer grants any awards under the Lilis 2012 Omnibus Incentive Plan (the “2012 Plan”).

The following table sets forth the stock based compensation expense recognized during the years ended December 31, 2019 and 2018 and the unamortized portion of the stock based compensation expense and weighted average amortization period of the remaining vesting period for the year ended December 31, 2019 and 2018, the Company’s share-based compensation consisted of the following (dollars in thousands):



	Year Ended December 31,
	2019						2018
	Stock Options		Restricted Stock		Total		Stock Options		Restricted Stock		Total
Share based compensation expensed	$	317	$	6,189	$	6,506	$	2,158	$	6,842	$	9,000
Unrecognized share-based compensation costs	$	100	$	1,228	$	1,328	$	487	$	3,501	$	3,988
Weighted average amortization period remaining (in years)	1.55		1.05				0.03		0.50

Restricted Stock

Employees may be granted restricted stock in the form of restricted stock awards or restricted stock units. Restricted stock is subject to forfeiture restrictions and cannot be sold, transferred, or disposed of during the restriction period. The holders of restricted stock awards have the same rights as a stockholder of the Company with respect to such shares, including the right to vote and receive dividends or other distributions paid with respect to the shares. Restricted stock vests over service periods ranging from the date of grant generally up to two or three years. The company expenses the grant date fair value of restricted shares, determined to be share price on the date of grant, ratably over the service period.

A summary of restricted stock grant activity pursuant to the 2012 Plan and the 2016 Plan for the year ended December 31, 2019, is presented below:



	Number of Shares		Weighted Average Grant Date Price
Outstanding at January 1, 2018	2,475,266		$	4.22
Granted	1,194,944		$	4.59
Vested and issued	(1,436,146	)	$	2.38
Forfeited or canceled ⁽¹⁾	(1,280,480	)	$	4.44
Outstanding at December 31, 2018	953,584		$	4.85
Granted	3,684,372		$	1.46
Vested and issued	(2,341,269	)	$	2.39
Forfeited or canceled ⁽¹⁾	(894,512	)	$	2.94
Outstanding at December 31, 2019	1,402,175		$	1.26

⁽¹⁾ Forfeitures are accounted for as and when incurred.

Stock Options

Employees may be granted incentive stock options to purchase shares of the Company’s common stock with an exercise price equal to, or greater than, the fair market value of the Company’s common stock on the date of grant. These stock options generally vest over two years from the date of grant and terminate at the earlier of the date of exercise or ten years from the date of grant. During the year ended December 31, 2018, the Company received cash proceeds of approximately $2.6 million from the exercise of vested stock options. There were no stock options exercised during the year ended December 31, 2019.

A summary of stock option activity pursuant to the 2016 Plan for the years ended December 31, 2019 and 2018, is presented below:



	Number of Options		Weighted Average Exercise Price		Number of Options Vested/ Exercisable	Weighted Average Remaining Contractual Life (Years)
Outstanding at January 1, 2018	7,305,000		$	3.74	3,534,484	8.9
Granted	352,500		$	4.07
Exercised	(1,024,877	)	$	2.67
Forfeited or canceled	(1,601,045	)	$	4.20
Outstanding at December 31, 2018	5,031,578		$	3.81	5,035,317	7.9
Granted	135,000		$	2.17
Exercised	—		$	—
Forfeited or canceled ⁽¹⁾	(1,578,228	)	$	3.14
Outstanding at December 31, 2019	3,588,350		$	4.05	4,125,842	7.2

⁽¹⁾ Forfeitures are accounted for as and when incurred.

During the year ended December 31, 2019, options to purchase 135,000 shares of the Company’s common stock were granted under the 2016 Plan. The weighted average fair value of these options was $1.47 utilizing the weighted average expected term of 10 years, expected volatility of 30%, no expected dividends, and risk-free interest rate of 2.67%.

The Company estimates expected volatility based on an analysis of its historical stock prices since the initial public offering date in 2007. The Company estimates the expected term of its option awards based on the vesting period. The Company uses this method to provide a reasonable basis for estimating its expected term due to the lack of sufficient historical employee exercise data on stock option awards.