5. 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. 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 June 30, 2020, the Company had 13,159,631 shares available for future grant under the 2014 Plan.

Stock Options

There was no option activity under the Company’s 2014 Plan during the three and six months ended June 30, 2020.
  

Restricted Stock Awards

During the three and six months ended June 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 June 30, 2020, there are no unvested RSA awards outstanding under the 2014 Plan.

Awards Granted Outside the 2014 Plan

Options

During the three and six months ended June 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. At June 30, 2020 there are 869,144 options vested and outstanding with a weighted average exercise price of $0.25 and a weighted average remaining life of 0.13 years.

Restricted Stock Awards

The following is a summary of RSA activity outside of the Company’s 2014 Plan during the six months ended June 30, 2020:

Stock-Based Compensation Expense

The Company recognizes compensation expense using the straight-line method over the requisite service period. For the three months ended June 30, 2020 and 2019, the Company recognized stock-based compensation expense of $28,709 and $173,084, (including compensation expense for RSAs discussed above), which was recorded as a general and administrative expense in the Condensed Consolidated Statements of Comprehensive (Loss) Income. For the six months ended June 30, 2020 and 2019, the Company recognized stock-based compensation expense of $92,851 and $344,577, respectively (including compensation expense for RSAs discussed above), which was recorded as a general and administrative expense in the Condensed Consolidated Statements of Comprehensive (Loss) Income. The total amount of unrecognized compensation cost was $164,798 as of June 30, 2020. This amount will be recognized over a weighted average period of 2.18 years.