Stock-Based Compensation |
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of Compensation Related Costs, Share-based Payments [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, and 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 March 31, 2019, the Company had 9,142,273 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 months ended March 31, 2019.
Restricted Stock Awards
There was no restricted stock award (“RSA”) activity under the Company’s 2014 Plan during the three months ended March 31, 2019.
On February 28, 2018, in conjunction with the signing of the K2C separation agreement discussed in Note 8 below, Mr. Lykos’ RSAs amounting to 325,000 shares vested immediately resulting in a Type III award modification and a credit to stock compensation of $98,042 for the three months ended March 31, 2018 due to a lower fair value of those shares as of the modification date.
Awards Granted Outside the 2014 Plan
Options
There was no option activity outside of the 2014 Plan during the three months ended March 31, 2019.
Restricted Stock Awards
The following is a summary of RSA activity outside of the Company’s 2014 Plan during the three months ended March 31, 2019:
On February 28, 2018, in conjunction with the signing of the K2C separation agreement discussed in Note 8 below, Mr. Lykos’ Restricted stock awards amounting to 900,000 shares became immediately vested resulting in a Type III award modification and stock compensation expense of $216,000 for the three months ended March 31, 2018, due to an increase in the fair value of the award immediately before and after the modification date.
Stock-Based Compensation Expense
The Company recognizes compensation expense using the straight-line method over the requisite service period. For the three months ended March 31, 2019 and 2018, the Company recognized stock-based compensation expense of $171,493 and $229,609, respectively (including compensation expense for RSAs discussed above), which was recorded as a general and administrative expense in the Condensed Consolidated Statements of Operations and Comprehensive Loss. The total amount of unrecognized compensation cost was $577,123 as of March 31, 2019. This amount will be recognized over a weighted average period of 1.23 years.
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