Equity Incentive Plan

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Share-based Payment Arrangement [Text Block]

Equity Incentive Plans

During the nine months ended September 30, 2020 and 2019, the Company granted awards of restricted stock units of none and 100,000, respectively, of which the 100,000 granted in 2019 were outside of the 2015 Performance Incentive Plan. The restricted stock units were recorded at fair value on the date of grant. Restricted stock units typically vest over a period of approximately three years. The restricted stock units granted outside of the 2015 Performance Incentive Plan are fully vested. During the nine months ended September 30, 2020, the Company entered into various consulting agreements for business advisory services and granted to the same business advisors, in the aggregate, non-qualified stock options for the purchase of 130,000 common shares with an exercise price of $2.52 per share in lieu of cash payment for services performed of which 30,000 of such non-qualified options were granted to, and exercised by, a related party.

Restricted Stock Awards

During the nine months ended September 30, 2020 and 2019, the Company granted restricted stock awards (“RSA”) in lieu of cash payment for services performed. The estimated fair value of the RSAs was based on the market value of the Company’s common shares on the date of grant. During the nine months ended September 30, 2020 and 2019, the Company granted RSAs of 400,841 and 42,000, respectively, with a fair value of $771,000 and $105,000, respectively.

Share-Based Compensation Expense

The Company recorded the following compensation expense related to its share-based compensation awards:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Cost of sales	$	—	$	—	$	—	$	205
Sales and marketing	—		192,446		2,014		271,763
Research and development	—		15,705		2,532		52,326
General and administrative	—		29,607		—		153,663
Total share-based compensation expense	$	—	$	237,758	$	4,546	$	477,957

As of September 30, 2020, there was no unrecognized compensation expense related to equity-based compensation awards.