Quarterly report pursuant to Section 13 or 15(d)

Stockholders??? Equity

v3.21.1
Stockholders’ Equity
3 Months Ended
Mar. 31, 2021
Equity [Abstract]  
Stockholders’ Equity Stockholders’ Equity
2018 Stock Plan
In June 2018, the Company’s Board of Directors (the "Board") and stockholders adopted the 2018 Stock Plan. The 2018 Stock Plan is designed to enable the Company to offer employees, officers, directors and consultants, as defined, an opportunity to acquire a proprietary interest in the Company. The types of awards that may be granted under the 2018 Stock Plan include stock options, stock appreciation rights, restricted stock, and other stock-based awards subject to limitations under applicable
law. All awards are subject to approval by the Company’s Board. The 2018 Stock Plan reserves shares of common stock for issuance in accordance with the 2018 Stock Plan’s terms. Total number of shares reserved and available for issuance under the plan was 4,150,000 shares as of March 31, 2021. As of March 31, 2021, 47,800 shares remained available for grant under the 2018 Stock Plan prior to the approved increase to the pool of 1,500,000 shares, which was approved by the Company's shareholders at the annual shareholders meeting in April 2021.
Restricted Stock

Restricted stock activity for the three months ended March 31, 2021 is summarized as follows:
Number of
Shares
Weighted-
Average
Grant Date
Fair Value
Outstanding, December 31, 2020 308,344  $ 8.70 
Vested (12,498) 11.54 
Outstanding, March 31, 2021 295,846  $ 8.58 
During the three months ended March 31, 2021 and 2020, the Company recorded $0.2 million and $0.1 million, respectively, in stock-based compensation for the restricted shares previously issued.
As of March 31, 2021, there was $1.3 million of unrecognized compensation expense related to restricted shares.

Stock Options
The following table summarizes stock option activities for the three months ended March 31, 2021:
Number of
Shares
Weighted
Average
Exercise Price
Weighted
Average
Remaining Life
(in Years)
Aggregate
Intrinsic
Value
(in thousands)
Outstanding, December 31, 2020 3,919,550  $ 4.47  8.11 $ 13,095 
Granted 66,300  9.74  —  — 
   Forfeited (64,925) $ 4.37 
Outstanding, March 31, 2021 3,920,925  $ 4.56  7.91 $ 47,601 
Exercisable, March 31, 2021 1,723,350  $ 2.98  7.43 $ 23,642 

During the three months ended March 31, 2021, the Company granted certain individuals options to purchase 66,300 shares of common stock with an average exercise price of $9.74 per share, with a contractual term of ten years, and a vesting period of 25.00% per year over four years. The options have an aggregate grant date fair value of $0.5 million that was calculated using the Black-Scholes option pricing model. Variables used in the Black-Scholes option pricing model include: (1) discount rate of 0.19% based on the daily yield curve rates for U.S. Treasury obligations, (2) expected life of 6.25 years based on the simplified method (vesting plus contractual term divided by two), (3) expected volatility of 88.90% based on the historical volatility of comparable companies' stock, (4) no expected dividends and (5) fair value of the Company's stock of $9.74 per share.
All options issued and outstanding are being amortized over their respective vesting periods. During the three months ended March 31, 2021 and 2020, the Company recorded option expense of $0.8 million and $0.6 million, respectively.
Warrants
The following table summarizes warrant activity for the three months ended March 31, 2021:
Number of
Shares
Weighted
Average
Exercise Price
Weighted
Average
Remaining
Contractual
Term
(in Years)
Aggregate
Intrinsic
Value
(in thousands)
Outstanding, December 31, 2020 1,324,608  $ 11.32  3.70 $ — 
Granted —  —  —  — 
Exercised (188,887) 1.75  —  248 
Forfeited (cashless exercise) (21,113) 1.75  —  — 
Outstanding, March 31, 2021 1,114,608  $ 13.12  3.31 $ 3,989 
Exercisable, March 31, 2021 1,114,608  $ 13.12  3.31 $ 3,989