Quarterly report pursuant to Section 13 or 15(d)

Stock based compensation, options and warrants

v3.8.0.1
Stock based compensation, options and warrants
3 Months Ended
Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock based compensation, options and warrants
Note 9. Stock based compensation, options and warrants:

Stock based compensation:

The Company recognized total expenses for stock-based compensation during the three months ended March 31, 2018 and 2017, which are included in the accompanying condensed consolidated statements of operations, as follows:

   
Three Months Ended March 31,
 
   
2018
   
2017
 
Selling, general and administrative expenses
 
$
883,943
   
$
133,043
 
    Total stock-based compensation
 
$
883,943
   
$
133,043
 
 
 
 
The Company recognized total stock-based compensation expense during the three months ended March 31, 2018 and 2017, from the following categories:
 
   
Three Months Ended March 31,
 
   
2018
   
2017
 
Restricted stock awards under the Plan
 
$
766,949
   
$
30,431
 
Stock option awards under the Plan
   
116,994
     
63,806
 
Non-qualified stock option awards
   
-
     
38,806
 
    Total stock-based compensation
 
$
883,943
   
$
133,043
 
 
Restricted stock units:
A summary of the Company’s restricted stock activity in the three months ended March 31, 2018 is presented here:
   
Number of Shares
   
Weighted Average Grant-Date
Fair Value
 
Unvested at January 1, 2018
   
496,152
   
$
5.97
 
Granted
   
292,500
     
13.08
 
Vested
   
(30,913
)
   
12.35
 
Forfeited
   
(26,563
)
   
10.58
 
Delivered
   
(50,000
)
   
4.50
 
Unvested at March 31, 2018
   
681,176
   
$
8.66
 

During the three months ended March 31, 2018, the Company granted 225,000 and 67,500 restricted stock units to employees and non-employee directors, respectively. The weighted-average fair value of restricted stock units granted during the three months ended March 31, 2018 was $13.08 per share based upon the share price as of the date of grant. The total fair value of restricted stock units granted during the three months ended March 31, 2018 was approximately $3,825,000.
 
The value of restricted stock unit grants are measured based on their fair value on the date of grant and amortized over the vesting period of twenty-four months. As of March 31, 2018, there was approximately $5,603,000 of unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a remaining weighted-average vesting period of approximately one year.

Stock incentive plan options:

The Company currently provides stock-based compensation to employees, directors and consultants under the Plan. The Company granted 50,000 stock options to an employee of the Company for the three months ended March 31, 2018. There were no stock options granted to employees, directors or consultants for the three months ended March 31, 2017.
 
A summary of activity under the Plan for the three months ended March 31, 2018 is presented below:
 
   
Shares Underlying Options
   
Weighted Average Exercise Price
   
Weighted Average Remaining Contractual
Term (Years)
   
Aggregate Intrinsic Value
 
Outstanding at January 1, 2018
   
119,533
   
$
9.02
             
     Granted
   
50,000
   
$
18.50
             
     Exercised
   
(19,533
)
 
$
4.02
             
     Forfeited
   
-
   
$
-
             
Outstanding at March 31, 2018
   
150,000
   
$
12.83
     
9.7
   
$
-
 
                                 
Exercisable at March 31, 2018
   
108,333
   
$
10.65
     
9.6
   
$
-
 
 
   
The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the Company’s closing stock price on March 31, 2018 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders, had all option holders been able to, and in fact had, exercised their options on March 31, 2018.

In January 2018, 19,533 vested options granted under the Plan were exercised for cash proceeds of $78,522.

During the three months ended March 31, 2018, there were no options forfeited that were granted under the Plan. The vested options were exercisable at an average of $10.65 per share, the unvested options were exercisable at an average of $18.50 per share.

Other common stock purchase options and warrants:

Following is a summary of outstanding options and warrants that were issued outside of the Plan for the three months ended March 31, 2018:
 
   
Shares Underlying Options/Warrants
   
Weighted Average Exercise Price
   
Weighted Average Remaining Contractual
Term (Years)
   
Aggregate Intrinsic Value
 
Outstanding at December 31, 2017
   
1,944,895
   
$
35.06
     
2.7
   
$
6,135,000
 
     Granted
   
-
     
-
                 
     Exercised
   
(113,009
)
 
$
3.50
                 
     Forfeited
   
-
     
-
                 
Outstanding at March 31, 2018
   
1,831,886
   
$
36.96
     
2.5
   
$
62,400
 
                                 
Exercisable at March 31, 2018
   
1,831,886
   
$
36.96
     
2.5
   
$
62,400
 
 
During the three months ended March 31, 2018, 13,009 of the warrants issued in the May 2013 private offering were surrendered for the issuance of 3,215 shares of common stock and 100,000 warrants issued in March 2017, were exercised for cash proceeds of $350,000.

The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the Company’s closing stock price on March 31, 2018 and the exercise price, multiplied by the number of in-the-money options and warrants) that would have been received by the option and warrant holders, had all option and warrant holders been able to, and in fact had, exercised their options and warrants on March 31, 2018.