NOTE 12 – STOCK-BASED COMPENSATION

Under the 2017 Omnibus Incentive Plan (the Plan), the Company may grant awards of stock options, stock appreciation rights, restricted stock, restricted stock units, other stock-based awards and performance awards. Under the Plan, the Company is authorized to issue up to 4.5 million shares of common stock. All awards granted were authorized under the Plan. These awards generally vest annually on a pro-rata basis over a five-year period on the anniversary of each grant date. We also grant awards to our directors under the Plan. The awards granted to directors vest ratably over periods of one, two or five years annually on the anniversary of each grant date.

All stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized on a straight-line basis as expense over the employees’ requisite service period. Forfeitures are recorded as a cumulative adjustment to stock-based compensation expense in the period forfeitures occur. Aggregate stock-based compensation charges, net of forfeitures, were $0.9 million and $1.0 million during the three months ended March 31, 2020 and 2019, respectively. These expenses are included as a component of salaries, wages and employee benefits on the accompanying consolidated statements of operations and comprehensive loss. As of March 31, 2020, there was $3.7 million and $4.2 million of unrecognized stock-based compensation expense related to stock options and restricted stock units, respectively. This expense will be recognized over the weighted average periods of 2.6 years for stock options and 2.2 years for restricted stock units.

Stock Options

The following table summarizes stock option grants under the Plan:


Grantee Type	# of Options Granted	Issued and Outstanding	Vesting Period	Weighted Average Exercise Price		Weighted Average Grant Date Fair Value (Per Option)

Director Group	150,000	100,000	5 years	$	9.98	$	4.36
Employee Group	2,632,730	2,180,124	3-5 years	$	8.56	$	3.70
Total		2,280,124

A summary of option activity under the Plan as of March 31, 2020 and changes during the three months then ended are as follows:


	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Terms (Years)	Aggregate Intrinsic Value (in millions)
Outstanding as of January 1, 2020	2,308,924	$	8.39	8.0	$	0.2
Granted	—		—
Forfeited or expired	(28,800)		11.80
Outstanding as of March 31, 2020	2,280,124	$	8.34	7.7	$	—

Exercisable as of March 31, 2020	945,556	$	9.76	7.2	$	—
Vested and expected to vest as of March 31, 2020	2,280,124	$	8.34	7.7	$	—

The stock options’ maximum contract term is ten years. The Company did not have any stock options granted during the three months ended March 31, 2020. The total weighted average fair value of options granted during the three months ended March 31, 2019 was $0.6 million.

Restricted Stock Units

Restricted stock units are nontransferable until vested and the holders are entitled to receive dividends with respect to the non-vested units. Prior to vesting, the grantees of restricted stock units are not entitled to vote the shares. Restricted stock unit awards vest in equal annual increments over the vesting period.

The following table summarizes restricted stock unit grants under the Plan:


Grantee Type	# of Restricted Stock Units Granted	Issued and Outstanding	Vesting Period	Weighted Average Grant Date Fair Value (Per Unit)

Director Group	785,498	730,838	1-2 years	$	2.75
Employee Group	1,568,655	411,925	5 years	$	10.59
Total		1,142,763

A summary of restricted stock unit awards activity under the Plan as of March 31, 2020 and changes during the three months then ended are as follows:


	Units	Weighted Average Grant Date Fair Value (Per Unit)

Non-vested as of January 1, 2020	1,180,882	$	5.44
Granted	—		—
Vested	(13,805)		14.29
Forfeited	(24,314)		10.38
Non-vested as of March 31, 2020	1,142,763	$	5.22