Stock-Based Compensation |
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| Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation |
6. Stock-Based Compensation
Stock Incentive Plan
On October 31, 2014, after the closing of the Merger, the Board approved the Company’s 2014 Omnibus Incentive Plan (the “2014 Plan”). The 2014 Plan initially reserved 3,200,000 shares for future grants. In October 2018, the Company increased the share reserve under the 2014 Plan to equal 10% of the number of issued and outstanding shares of common stock of the Company. In August 2020, the Company approved Amendment No. 2 to the 2014 Plan, which increased the share reserve by an additional 7,876,835 shares over the 10% of the number of issued and outstanding shares of common stock, and removed certain restrictions on the number of shares of common stock and the amount of cash-based awards up to which participants of the 2014 Plan can receive in a calendar year. The 2014 Plan authorizes the issuance of awards including stock options, stock appreciation rights, restricted stock, stock units and performance units to employees, directors, and consultants of the Company. As of September 30, 2020, the Company had 6,040,097 shares available for future grant under the 2014 Plan.
Stock Options
The following is a summary of option activities under the Company's 2014 Plan for the nine months ended September 30, 2020:
During the nine months ended September 30, 2020, no stock options were exercised. The weighted-average fair value of stock options granted during the nine months ended September 30, 2020 was $0.04.
The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option pricing model under the following assumptions:
Restricted Stock Awards
During the nine months ended September 30, 2020, 643,501 restricted stock awards ( ''RSAs'' ) with a weighted average grant date fair value of $0.26 vested and were released from their service condition restriction. At September 30, 2020, there are no unvested RSA awards outstanding under the 2014 Plan.
Awards Granted Outside the 2014 Plan
Options
During the nine months ended September 30, 2020, 325,929 stock options with a weighted average exercise price of $0.25 were forfeited in connection with the separation and release of the Company's former CFO. As of September 30, 2020, an additional 869,144 options vested and outstanding with a weighted average exercise price of $0.25 were cancelled unexercised.
Restricted Stock Awards
The following is a summary of RSA activity outside of the Company's 2014 Plan during the nine months ended September 30, 2020:
Stock-Based Compensation Expense
The Company recognizes compensation expense using the straight-line method over the requisite service period. Stock-based compensation is included in the Condensed Consolidated Statements of Comprehensive Loss in general and administrative or research and development, depending upon the nature of services provided. Stock-based compensation expense (including compensation expense for RSAs discussed above) was as follows:
The total amount of unrecognized compensation cost was $879,628 as of September 30, 2020. This amount will be recognized over a weighted average period of 3.59 years. |
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