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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
 
Stock Options

The 1999 Director Stock Option Plan, as amended (the “Director Plan”), provides for the grant of stock options to non-employee directors of the Company at an exercise price equal to the fair market value per share on the date of the grant. As of May 25, 2016, this plan is no longer active for grants. There were 485,000 and 500,000 stock options outstanding as of December 31, 2019 and 2018, respectively.

On June 26, 2009, the Board of Directors adopted, and the Company’s stockholders subsequently approved by written consent, the IGI Laboratories, Inc. 2009 Equity Incentive Plan (the “2009 Plan”). The 2009 Plan became effective on July 29, 2009 and was no longer active for grants subsequent to May 25, 2016. The 2009 Plan allowed the Company to grant options and restricted stock, as well as the Board of Directors to authorize a broad range of other equity-based awards, including stock appreciation rights, restricted stock units ("RSUs") and performance awards to consultants, service providers, employees and board members. On April 12, 2010, the Board of Directors adopted, and the Company’s stockholders subsequently approved, an amendment and restatement of the 2009 Plan to increase the number of shares of Common Stock available for grant under such plan by adding 2,000,000 shares of Common Stock. The 2009 Plan, as amended on May 29, 2010, authorizes up to 5,000,000 shares of the Company’s common stock for issuance pursuant to the terms of the 2009 Plan. The maximum number of shares that may be subject to awards made to any individual in any single calendar year under the 2009 Plan is 1,000,000 shares. There were 1,847,608 stock options outstanding and 1,868,302 shares of stock outstanding as of December 31, 2019. There were no RSUs outstanding at December 31, 2019. There were 14,377 RSUs, 1,853,925 shares of stock outstanding and 2,458,106 stock options outstanding as of December 31, 2018. As of December 31, 2019, 1,369,038 options available were transferred to the superseded plan.
 
On May 25, 2016, the Board of Directors approved the Company's 2016 Equity Incentive Plan (the "2016 Plan"). On May 21, 2018, the Board of Directors adopted, and the Company's stockholders subsequently approved, an amendment and restatement of the 2016 Plan to increase the number of shares of Common Stock available for grant under such plan by adding 2,000,000 shares of Common Stock. The 2016 Plan, as amended, provides for the issuance of awards of up to 4,000,000 shares of the Company's common stock, plus any currently forfeited, expired or canceled grants without delivery of shares of common stock to the recipient which would be returned to the plan for reissuance up to 2,500,000 shares. Generally, shares of common stock reserved for awards under the 2016 Plan that lapse or are canceled, will be added back to the share reserve available for future awards. However, shares of common stock tendered in payment for an award or shares of common stock withheld for taxes will not be available again for grant. The 2016 Plan provides that no participant may receive awards for more than 1,000,000 shares of common stock in any fiscal year. As the 2016 Plan supersedes either the Director Plan or the 2009 Plan, any available shares from either are now incorporated into the 2016 Plan. As of December 31, 2019, there were 62,680 RSUs outstanding, 136,496 shares of common stock outstanding and 2,835,131 stock options under the 2016 Plan. As of December 31, 2018, there were 161,214 RSUs outstanding, 74,667 shares of common stock outstanding and 1,394,285 stock options outstanding under the 2016 Plan. As of December 31, 2019 and December 31, 2018, there were 5,167,739 and 4,352,391 stock options
outstanding respectively in the Director Plan, 2009 Plan, and the 2016 Plan. As of December 31, 2019, there were 2,334,731 options available to grant under the plan.

In the interest of maintaining consistency with the Company's 2016 Equity Incentive Plan, on March 13, 2017, the Company entered into (i) an amendment to the option agreements governing each option grant currently outstanding under the Company's 2009 Equity Incentive Plan, and (ii) an amendment to the RSU agreements governing each RSU grant then outstanding under the 2009 Plan. The amendments provide for the automatic vesting upon a change of control of the Company of each option grant and RSU grant, as applicable, outstanding under the 2009 Plan. The amendments had a de minimis value to the holders as of December 31, 2019, and therefore no additional stock compensation expense was recognized related to the amendments.
 
The fair value of each option award is estimated on the date of grant utilizing the Black-Scholes option-pricing formula and the assumptions noted in the following table. Expected volatilities and risk-free interest rates are based upon the expected life of the grant.
 
Assumptions20192018
Expected dividends0 %0 %
Risk free rate1.38 - 2.47%  2.44 %
Expected volatility64.33 - 76.81%52.7 - 72.5%
Expected term (in years)3.2 – 3.3 years3.2 – 3.3 years
 
Volatility was estimated based on historical volatility of the Company’s stock over the expected life of the options. The expected life of the options was estimated based on the Company’s historical data. The risk-free interest rate is based on U.S. Treasury yields for securities with terms approximating the terms of the grants. Forfeitures are recognized in the period in which they occur. The assumptions utilized in the Black-Scholes option valuation model are highly subjective and can affect the resulting valuation.

Stock option transactions in each of the past two years under the aforementioned plans in total were: 
 SharesExercise
Price Per Share		Weighted
Average
Exercise
Price
January 1, 2018 shares issuable under options4,299,810  $0.79 - $10.67$5.09  
Granted839,785  1.73-4.25  3.34  
Exercised(239,000) 1.02-1.831.05  
Expired—  —  —  
Forfeited(548,204) 2.02-10.678.04  
December 31, 2018 shares issuable under options4,352,391  $0.79-$10.67$4.61  
Granted2,468,129  $0.55-$1.800.61  
Exercised—  —  —  
Expired(761,780) $1.02-$10.67  2.42  
Forfeited(891,001) $0.66-$8.671.04  
December 31, 2019 shares issuable under options5,167,739  $0.55-$10.67$3.34  
  
The following table summarizes information concerning outstanding and exercisable options as of December 31, 2019:
 Options OutstandingOptions Exercisable
Range of
Exercise Price		Number of
Options		Weighted
Average
Remaining
Life (Years)		Weighted
Average
Exercise
Price		Number of
Options		Weighted
Average
Exercise
Price
$0.00 - $0.78195,155  9.58$0.65  —  $—  
$0.79 - $1.501,781,369  4.521.02  1,265,000  1.03  
$1.51 - $5.501,884,517  8.252.27  482,288  3.30  
$5.51 - $10.671,306,698  5.978.44  1,250,518  7.73  
Total5,167,739  6.44$3.34  2,997,806  $4.49  
 
The following table summarizes information concerning outstanding and exercisable options as of December 31, 2018:
 
 Options OutstandingOptions Exercisable
Range of
Exercise Price		Number of
Options		Weighted
Average
Remaining
Life (Years)		Weighted
Average
Exercise
Price		Number of
Options		Weighted
Average
Exercise
Price
$0.79 - $1.501,510,000  3.12$1.06  1,510,000  $1.06  
$1.51 - $5.50992,457  8.273.23  199,826  2.76  
$5.51 - $10.671,849,934  6.998.24  1,528,686  8.45  
Total4,352,391  5.94$4.61  3,238,512  $4.65  

 
The Company has recorded $0.9 million, $1.5 million related to its stock option based compensation expenses in cost of sales, product development and research expenses, and selling, general and administrative expenses on the accompanying Consolidated Statements of Operations for the years ended December 31, 2019 and 2018, respectively.
 
The aggregate intrinsic value of options outstanding was $0.0 million at December 31, 2019 and $0.5 million at December 31, 2018. The aggregate intrinsic value of the options exercisable was $0 million at December 31, 2019 and $0.5 million at December 31, 2018. The total intrinsic value of the options exercised during 2019 and 2018 was $0 million, $0.1 million, respectively.
  
A summary of non-vested options at December 31, 2019 and changes during the year ended December 31, 2019 is presented below: 
OptionsWeighted
Average
Grant Date
Fair Value
Non-vested options at January 1, 20191,113,878  $2.00  
Granted2,468,129  0.61  
Vested(521,073) 2.20  
Forfeited(891,001) 1.04  
Non-vested options at December 31, 20192,169,933  $0.77  
 
As of December 31, 2019, there was $1.0 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements under the Plan. The costs will be recognized through November 2022.
 
Restricted Stock and RSUs
 
The Company periodically grants restricted stock and RSU awards to certain officers and other employees that typically vest one to three years from their grant date. The Company recognized $0.2 million and $0.5 million, respectively, of compensation expense during the years ended December 31, 2019 and 2018 related to restricted stock awards and RSUs. Stock compensation
expense is recognized over the vesting period of the restricted stock and RSUs. At December 31, 2019, the Company had approximately $0.1 million of total unrecognized compensation cost related to non-vested restricted stock and RSUs, all of which will be recognized through March 2021.
There have been no restricted stock issuances in the years ended 2019 and 2018.

A summary of non-vested RSUs and changes during each of the past two years is as follows:
Number of
RSUs		Weighted Average
Issuance Price
Non-vested balance at January 1, 2018188,629  $8.27  
Changes during the period:
Shares granted122,949  3.36  
Shares vested(109,940) 8.95  
Shares forfeited(26,047) 5.76  
Non-vested balance at December 31, 2018175,591  $4.78  
Changes during the period:
Shares granted—  —  
Shares vested(76,206) 5.39  
Shares forfeited(36,705) 4.74  
Non-vested balance at December 31, 201962,680  $4.07