Compensation Plans

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Compensation Plans

10. Compensation Plans

The Company provides stock-based compensation in the form of (a) stock awards to employees and directors, comprised of restricted stock awards and restricted stock units (collectively referred to as the “Restricted Stock Awards”), (b) stock option grants to employees directors and consultants (referred to as the “Common Stock Awards”) (c) stock option awards, restricted stock awards, unrestricted stock awards, and stock appreciation rights to employees, directors and consultants (collectively the “Common Equity Awards”), (d) stock option awards outside the 2016 Stock Incentive Plan and 2019 Equity Incentive Plan to certain officers, directors and employees (referred to as the “Outside Options”), (e) common stock warrants to the Company’s channel partners (referred to as the “Channel Partner Warrants”), and (f) common stock warrants to ABG-SI, LLC (referred to as the “ABG Warrants”).

Stock-based compensation and equity-based expense charged to operations or capitalized during the three months ended March 31, 2020 and 2019 are summarized as follows:

	Restricted		Common		Common				Channel
	Stock		Stock		Equity		Outside		Partner		ABG
	Awards		Awards		Awards		Options		Warrants		Warrants		Totals
During the Three Months Ended March 31, 2020
Cost of revenue	$	37,576	$	69,796	$	1,009,592	$	1,206	$	8,039	$	-	$	1,126,209
Selling and marketing		299,215		35,728		678,279		55,378		-		-		1,068,600
General and administrative		22,920		171,672		755,247		55,183		-		360,289		1,365,311
Total costs charged to operations		359,711		277,196		2,443,118		111,767		8,039		360,289		3,560,120
Capitalized platform development		70,283		41,157		256,001		2,611		-		-		370,052
Total stock-based compensation	$	429,994	$	318,353	$	2,699,119	$	114,378	$	8,039	$	360,289	$	3,930,172
During the Three Months Ended March 31, 2019
Cost of revenue	$	35,375	$	20,219	$	-	$	1,129	$	12,348	$	-	$	69,071
Selling and marketing		34,393		21,945		-		51,946		-		-		108,284
General and administrative		715,637		404,430		892		21,313		-		-		1,142,272
Total costs charged to operations		785,405		446,594		892		74,388		12,348		-		1,319,627
Capitalized platform development		137,956		29,992		-		-		-		-		167,948
Total stock-based compensation	$	923,361		476,586	$	892	$	74,388	$	12,348	$	-	$	1,487,575

Unrecognized compensation expense and expected weighted-average period to be recognized related to the stock-based compensation awards and equity-based awards as of March 31, 2020 was as follows:

	Restricted		Common		Common				Channel
	Stock		Stock		Equity		Outside		Partner		ABG
	Awards		Awards		Awards		Options		Warrants		Warrants		Totals
Unrecognized compensation expense	$	1,314,792	$	1,501,346	$	27,525,363	$	772,360	$	6,100	$	4,302,887	$	35,422,848
Expected weighted-average period expected to be recognized (in years)		0.89		1.08		2.38		1.86		0.31		3.13		2.35