Annual report pursuant to Section 13 and 15(d)

Note 6 - Stock-based Compensation

v3.19.1
Note 6 - Stock-based Compensation
 12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
6
.
Stock-Based Compensation
 
For the years ended
December 31, 2018
and
2017,
our total stock-based compensation expense, which includes reversals of expense for certain forfeited or cancelled awards, was approximately
$307,000
and
$394,000,
respectively. We have
not
recorded any income tax benefit related to stock-based compensation for the years ended
December 31, 2018
and
2017.
 
A summary of the status of our stock options as of
December 31, 2018,
and changes during the year then ended, is presented below: 
 
   
Year Ended December 31, 201
8
  
   
Number of
Options
    
Weighted
Average
Exercise
Price
    
Weighted
Average
Remaining
Contractual
Life
(in years)
    
Aggregate
Intrinsic
Value
  
Outstanding at beginning of year
    
3,687,679
     $
1.50
      
 
      
 
  
Granted
    
470,000
      
0.53
      
 
      
 
  
Exercised
    
—
      
—
      
 
      
 
  
Canceled and forfeited
    
(992,510
)
    
1.86
      
 
      
 
  
Expired
    
(7,000
)
    
0.66
      
 
      
 
  
Outstanding at end of year
    
3,158,169
     $
1.24
      
6.6
     $
—
  
Exercisable at end of year
    
1,502,173
     $
1.87
      
4.4
     $
—
  
 
The weighted average grant-date fair value of options granted in
2018
and
2017
was
$0.20
and
$0.19,
respectively. During
2017,
50,000
stock options with an aggregate intrinsic value of
$4,400
were exercised in exchange for issuance of
50,000
shares of our common stock, resulting in gross proceeds of
$18,100.
No
stock options were exercised during
2018.
In
2018
and
2017,
the aggregate fair value of stock options vested during the year was
$0
in both years.
 
A summary of the status of our unvested restricted stock as of
December 31, 2018,
and changes during the year then ended, is presented below:
 
   
Year Ended
December 31, 201
8
  
   
Number of
Shares
    
Weighted
Average
Grant-Date
Fair Value
  
Unvested at beginning of year
    
150,000
     $
0.51
  
Granted
    
200,000
      
0.37
  
Forfeited
    
(50,000
)
    
0.36
  
Vested
    
(200,000
)
    
0.47
  
Unvested at end of year
    
100,000
     $
0.37
  
 
During
2018
and
2017,
200,000
and
207,000
shares, respectively, of restricted stock vested with aggregate vesting date fair values of
$59,000
and
$99,000,
respectively.
 
In
March 2018,
100,000
shares of restricted stock held by a non-employee director with an aggregate fair value of
$36,000
vested upon his retirement from the Board. In
August 2018,
50,000
shares of restricted stock held by a non-employee director with an aggregate fair value of
$7,000
were forfeited as a result of his departure from the Board. During
2018,
100,000
shares of restricted stock held by non-employee directors with an aggregate fair value of
$23,000
vested as scheduled according to the terms of the restricted stock agreements.
 
In
October 2017,
50,000
shares of restricted stock held by a non-employee director with an aggregate fair value of
$22,000
were forfeited as a result of his departure from the Board. During
2017,
140,000
shares of restricted stock held by non-employee directors with an aggregate fair value of
$65,000
vested as scheduled according to the terms of the restricted stock agreements. Also during
2017,
17,000
shares of restricted stock held by a non-employee director with an aggregate fair value of
$9,000,
and
50,000
shares of restricted stock held by an executive officer with an aggregate fair value of
$25,000,
were vested by Board action after determination that the vesting events would
not
occur due to changes in the Company’s development programs.
 
As of
December 31, 2018,
there was approximately
$71,000
of total unrecognized compensation cost related to stock option and restricted stock awards, which we expect to recognize over remaining weighted average vesting terms of
1.2
years. See Note
1
(e).