Note 12 – Stock-based Compensation

The Company’s Amended and Restated 2013 Equity Compensation Plan (the “Plan”) provides for the granting of incentive stock options, nonqualified stock options, restricted stock units, performance units, and stock purchase rights. There were no significant modifications to the Plan during the six months ended June 30, 2020 and 2019.

With the approval of the Board of Directors and a majority of shareholders, effective May 8, 2014, the Plan was amended and restated. The amendment provides for an automatic increase in the number of shares of common stock available for issuance under the Plan each January, commencing January 1, 2015, in an amount up to four percent (4%) of the total number of shares of common stock outstanding on the preceding December 31st.

The following table contains information about the Company’s stock plan at June 30, 2020:

Schedule of Equity Compensation Plan by Arrangements 

The Company recognized stock-based compensation expense (options and restricted share grants) in its condensed consolidated statements of operations as follows:

Schedule of Recognized Stock-Based Compensation 

During the six months ended June 30, 2020, the Company modified the exercise terms of certain vested stock options resulting in additional stock-based compensation expense of approximately $432.8 thousand. The exercise terms were due to expire on February 9, 2020 but were extended for an additional two years and will be cancelled if not exercised on or before February 9, 2022. The additional expense was recorded in the research and development department.

As of June 30, 2020, total compensation costs related to unvested awards not yet recognized was approximately $9.7 million and the weighted-average periods over which the awards are expected to be recognized was 3.1 years.

Stock Options

The following table summarizes the activity for Company’ stock options for the three months ended June 30, 2020 (in thousands):

Schedule of Stock Option Activity 

Restricted Stock Awards

During the six months ended June 30, 2020 and 2019, the Company granted restricted stock awards for 247 thousand and 122 thousand shares of common stock, respectively. These awards are granted to members of the Board of Directors as payment in lieu of cash fees or as payment to a vendor pursuant to a consulting agreement. The Company values restricted stock awards at the fair market value on the date of grant. The Company recorded the value of these restricted awards as general and administrative expense of approximately $93.2 thousand and $173.2 thousand for the three and six months ended June 30, 2020, respectively, and approximately $58.7 thousand and $175.4 thousand for the three and six months ended June 30, 2019, respectively, in the condensed consolidated statement of operations. As of June 30, 2020, there was approximately $73.5 thousand of total unrecognized compensation costs related to 200,000 non-vested restricted stock grants which are expected to be recognized over a weighted-average period of 0.3 years.