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STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION

Under our stock option plans, our board of directors may grant restricted stock and options to purchase common shares to our employees, officers, directors and consultants. We account for stock options in accordance with FASB ASC Topic 718, Compensation - Stock Compensation, with stock-based compensation expense amortized over the vesting period based on the fair value on the grant date utilizing a trinomial lattice model through 2018 and the Black Scholes model for grants in 2019 and 2020, both of which include a number of estimates that affect the amount of our expense.

We recognized approximately $1,097,000 and $2,146,000, respectively, in stock-based compensation expense during the three and six months ended June 30, 2020, as compared with $856,000 and $2,051,000, respectively, for the three and six months ended June 30, 2019.

The status of our stock options are summarized as follows:
 
Number of options
 
Weighted average exercise price
Outstanding at December 31, 2019
3,966,858

 
$
4.67

Granted
1,274,900

 
8.18

Exercised
(44,381
)
 
3.23

Canceled and forfeited
(211,433
)
 
7.51

Outstanding at June 30, 2020
4,985,944

 
$
5.46



We allow stock option holders to exercise stock-based awards by surrendering stock-based awards with a fair value of the stock-based awards exercised, referred to as net settlements. These surrenders are included in stock options exercised in the options rollforward above. For the three months ended June 30, 2020 and 2019, respectively, we received 11,085 and 7,779 options as payment in the exercise of 17,665 and 17,221 options. For the six months ended June 30, 2020 and 2019, respectively, we received 13,009 and 91,598 options as payment in the exercise of 22,027 and 185,951 options.

Common shares required to be issued upon the exercise of stock options would be issued from our authorized and unissued shares. We calculated the fair value of issued options utilizing a Black Scholes model with an expected life calculated via the simplified method as we do not have sufficient history to determine actual expected life.
 
2020 Grants
Option value
$8.18
Risk-free rate
1.7%
Expected dividend yield
—
Expected volatility
65.9%
Expected term (in years)
6