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 three months ended March 31, 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 March 31, 2020:

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

During the three months ended March 31, 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 cancel if not exercised on or before February 9, 2022. The additional expense was recorded in the research and development department.

As of March 31, 2020, total compensation costs related to unvested awards not yet recognized was approximately $9.4 million and the weighted-average periods over which the awards are expected to be recognized was 3.3 years.

Stock Options

The following table summarizes the activity for Company’ stock options for the three months ended March 31, 2020 (in thousands):

* Converted into approximately 56.5 thousand shares of common stock.

Restricted Stock Awards

During the three months ended March 31, 2020 and 2019, the Company granted restricted stock awards for 226 thousand and 54 thousand shares of common stock, respectively. These awards are typically 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 $80.0 thousand and $116.7 thousand in the condensed consolidated statement of operations for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, there was approximately $151.3 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 0.5 years.