XML 36 R13.htm IDEA: XBRL DOCUMENT v3.20.1
7. STOCK OPTION PLANS
 12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
STOCK OPTION PLANS

2019 Stock Option Plan

 

On July 9, 2019, the Company established the 2019 Stock Option Plan (the “Option Plan”) for officers and certain full-time and part-time employees of the Company. Non-employee directors of the Company are not entitled to participate under this plan. The Option Plan provides for 4,000,000 shares of common stock for issuance upon the exercise of stock options granted under the plan. Under this plan, stock options are granted at the discretion of the Compensation Committee of the Board of Directors at an option price not less than the fair market value of the stock on the date of grant. The options are exercisable in accordance with terms specified by the Compensation Committee not to exceed ten years from the date of grant. Option activity under this plan follows.

 

 

   Number of shares  Weighted average exercise price  Weighted Average Remaining Contractual Life
 Outstanding as of January 1, 2019    —     $—      —   
 Granted    820,000    0.83      
 Exercised    —      —        
 Outstanding as of December 31, 2019    820,000   $0.83    2.68 
                  
 Options exercisable at December 31, 2019    —      —      —   

 

The weighted average grant date fair value of options granted was $0.40 in 2019. The aggregate intrinsic value of options outstanding was approximately $0.3 million at December 31, 2019. The aggregate intrinsic value of exercisable options was approximately $0 at December 31, 2019. As of December 31, 2019 there remained 3,180,000 options available to be issued under the 2019 Stock Option Plan.

 

2019 Director Stock Option Plan

 

On July 9, 2019 the Company established the 2019 Director Stock Option Plan (the "Directors Plan"). The Directors Plan was established for all Directors of the Company except for any Director who is a full-time employee or full-time officer of the Company. The option price is the fair market value of the common stock on the date the option is granted. There are 1,000,000 shares authorized for issuance under the Directors Plan. Each option expires three years from the grant date. Option activity under this plan follows.

 

    Number of shares       Weighted average exercise price      Weighted Average Remaining Contractual Life    
Outstanding as of January 1, 2019     ––     $ ––       ––  
Granted     45,000       0.97          
Exercised     ––       ––          
Outstanding as of December 31, 2019     45,000     $ 0.97       2.50  
Options exercisable at December 31, 2019       45,000     $ 0.97       2.50  

 

The weighted average grant date fair value of options granted was $0.53 in 2019. The aggregate intrinsic value of options outstanding was approximately $9.5 thousand at December 31, 2019. The aggregate intrinsic value of exercisable options was approximately $9.5 thousand at December 31, 2019. As of December 31, 2019 there remained 955,000 options available to be issued under the 2019 Director Stock Option Plan.

 

2009 Stock Option Plan

 

On December 10, 2009, the Company established the 2009 Stock Option Plan (the “Option Plan”) for officers and certain full-time and part-time employees of the Company. Non-employee directors of the Company are not entitled to participate under this plan. The Option Plan provides for 5,500,000 shares of common stock for issuance upon the exercise of stock options granted under the plan. Under this plan, stock options are granted at the discretion of the Compensation Committee of the Board of Directors at an option price not less than the fair market value of the stock on the date of grant. The options are exercisable in accordance with terms specified by the Compensation Committee not to exceed ten years from the date of grant. Option activity under this plan follows.

 

 

   Number of shares  Weighted average exercise price  Weighted Average Remaining Contractual Life
 Outstanding as of January 1, 2018    1,459,494   $0.45    1.59 
 Granted    899,500    2.11      
 Exercised    (740,641)   0.34      
 Expired/Forfeited    (48,750)   —        
 Outstanding as of December 31, 2018    1,569,603    1.41    2.13 
 Granted    90,000    0.95      
 Exercised    (199,792)   0.24      
 Expired/Forfeited    (150,000)   —        
 Outstanding as of December 31, 2019    1,309,811   $1.45    1.28 
                  
 Options exercisable at December 31, 2019      859,936   $1.22    1.04 

 

The weighted average grant date fair value of options granted was $0.46 in 2019. The weighted average grant date fair value of options granted was $0.92 in 2018. The aggregate intrinsic value of options outstanding was approximately $369 thousand at December 31, 2019 and approximately $730 thousand at December 31, 2018. The aggregate intrinsic value of exercisable options was approximately $353 thousand at December 31, 2019 and $730 thousand at December 31, 2018. As of December 31, 2019 there remained no options available to be issued under the 2009 Stock Option Plan. The 2009 Stock Option Plan terminated on December 1, 2019. The 2019 Stock Option Plan was approved on July 9, 2019 and replaced the 2009 Stock Option Plan.

 

2009 Director Stock Option Plan

 

On December 10, 2009 the Company established the 2009 Director Stock Option Plan (the "Directors Plan"). The Directors Plan was established for all Directors of the Company except for any Director who is a full-time employee or full-time officer of the Company. The option price is the fair market value of the common stock on the date the option is granted. There are 700,000 shares authorized for issuance under the Directors Plan. Each option expires five years from the grant date. Option activity under this plan follows.

 

   Number of shares  Weighted average exercise price  Weighted Average Remaining Contractual Life
 Outstanding as of January 1, 2018    330,000   $1.32    2.80 
 Granted    110,000    2.51      
 Exercised    (97,500)   1.29      
 Outstanding as of December 31, 2018    342,500    1.71    2.52 
 Granted    97,500    1.09      
 Exercised    (60,000)   0.23      
 Forfeited    (80,000)          
 Outstanding as of December 31, 2019    300,000   $1.63    2.00 
                  
 Options exercisable at December 31, 2019      300,000   $1.63    2.00 

 

 

The weighted average grant date fair value of options granted was $0.57 in 2019 and $1.28 in 2018. The aggregate intrinsic value of options outstanding was approximately $41 thousand at December 31, 2019 and $119 thousand at December 31, 2018. The aggregate intrinsic value of exercisable options was approximately $41 thousand at December 31, 2019 and $119 thousand at December 31, 2018. As of December 31, 2019 there remained no options available to be issued under the 2009 Director Stock Option Plan. The 2009 Director Stock Option Plan terminated on December 1, 2019. The 2019 Director Stock Option Plan was approved on July 9, 2019 and replaced the 2009 Director Stock Option Plan.

 

The Black-Scholes range of assumptions for the all Stock Option Plans is shown below:

 

      2019     2018  
Assumptions:                  
                   
Expected life   2.75 (yrs) - 3.5 (yrs) 2.75 (yrs) - 3.5 (yrs)            
                   
Expected volatility   77.74% - 87.40% 71.97% - 88.86%            
                   
Risk-free interest rate   1.34% - 2.69% 2.08% - 2.74%            
                   
Expected dividend yield   0.00% 0.00%            

 

The unrecognized stock based compensation expense related to non-vested stock awards was approximately $258 thousand as of December 31, 2019.  This amount will be recognized through the fourth quarter of 2021. The Company has a commitment to grant variable amount of stock options by October 4, 2020 driven by $100,000 of fair value of stock option expense.