Stock-Based Compensation

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

We maintain a stock-based compensation program intended to attract, retain and provide incentives for talented employees and directors and align stockholder and employee interests. During the 2020 and 2019 periods we granted options and restricted stock units ("RSUs") from the 2010 Equity Compensation Plan (“2010 ECP”) and the 2017 Equity Compensation Plan (“2017 ECP”). The 2010 ECP expired by its terms in April 2020. Option and RSUs vesting periods are generally up to three years and/or achieving certain financial targets.

On August 14, 2019, the Inuvo Nominating, Corporate Governance and Compensation Committee approved modifications to the outstanding RSU grants under the 2010 ECP and 2017 ECP. The modifications include deeming the performance criteria for the performance based RSU grants with a measurement period based on June 30, 2019 as met and vested. In addition, any remaining RSU grants outstanding were modified to vest in three equal parts on August 19, 2019, January 1, 2020 and July 1, 2020 as long as the grantee is employed by Inuvo on the vesting date.

On August 21, 2019 our board of directors adopted, subject to stockholder approval, an amendment to our 2017 ECP to increase in the number of shares reserved for issuance upon grants made under the plan by an additional 6,800,000 shares of our common stock. The stockholders approved the amendment to our 2017 ECP at the annual stockholders meeting on October 4, 2019.

On January 1, 2020, in accordance with the plan provisions, the number of shares available for issuance under the 2017 and 2010 ECP plans were increased by 150,000 and 250,000 shares, respectively.

Compensation Expense

For the three and six months ended June 30, 2020, we recorded stock-based compensation expense for all equity incentive plans of $193,288 and $402,185, respectively. For the three and six months ended June 30, 2019, we recorded stock-based compensation expense for all equity incentive plans of $49,823 and $146,693, respectively. Total compensation cost not yet recognized at June 30, 2020 was $486,627 to be recognized over a weighted-average recognition period of less than one year.

The following table summarizes the stock grants outstanding under our 2005 Long-Term Incentive Plan ("2005 LTIP"), the 2010 ECP and the 2017 ECP for the six months ended June 30, 2020:


	Options Outstanding	RSUs Outstanding	Options and RSUs Exercised	Available Shares	Total
2017 ECP	—	1,752,582	728,346	6,769,072	9,250,000
2010 ECP (**)	14,498	1,072,171	3,969,590	—	5,056,259
2005 LTIP (*)	—	—	953,835	—	953,835
Total	14,498	2,824,753	5,651,771	6,769,072	15,260,094

(*) Expired June 2015

(**) Expired April 2020

The following table summarizes the activities of stock option awards under the 2005 LTIP and the 2010 ECP for the six months ended June 30, 2020:


	Shares Subject to Options Outstanding
	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Balance as of December 31, 2019	18,248	$	1.74	1.8	$	2,019
Stock options canceled	3,750	$	3.7	—	—
Balance as of June 30, 2020	14,498	$	1.23	1.39	$	2,019
Stock options exercisable as of June 30, 2020	14,498	$	1.23	1.39	$	2,019

The following table summarizes the activities for our unvested RSUs for the six months ended June 30, 2020:


	Unvested RSUs
	Number of Shares	Weighted Average Grant Date Fair Value
Unvested as of December 31, 2019	2,568,951	$	0.79
Granted	587,103	$	0.44
Vested	331,301	$	0.21
Forfeited	—	$	—
Unvested as of June 30, 2020	2,824,753	$	0.31