|6 Months Ended|
Jun. 30, 2021
|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 5,650,000 shares as of June 30, 2021, including an increase of 1,500,000 shares, which was approved by the Company's shareholders at the annual shareholders meeting in April 2021. As of June 30, 2021, 1,198,725 shares remained available for grant under the 2018 Stock Plan.
Restricted stock activity for the six months ended June 30, 2021 is summarized as follows:
During the three and six months ended June 30, 2021 and 2020, the Company recorded $0.2 million and $0.1 million, respectively, and $0.4 million and $0.3 million, respectively, in stock-based compensation for the restricted shares previously issued.
As of June 30, 2021, there was $2.1 million of unrecognized compensation expense related to restricted shares.
The following table summarizes stock option activities for the six months ended June 30, 2021:
During the six months ended June 30, 2021, the Company granted certain individuals options to purchase 411,650 shares of common stock with an average exercise price of $9.74 per share, a contractual term of ten years, and a vesting period of 25.00% per year over four years. The options had an aggregate grant date fair value of $5.1 million that was calculated using the Black-Scholes option pricing model. Variables used in the Black-Scholes option pricing model included: (1) discount rate ranging from 0.19% to 1.03% 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 ranging from 88.90% to 90.77% based on the historical volatility of comparable companies' stock, (4) no expected dividends and (5) fair value of the Company's stock ranging from $9.74 to $16.47 per share.
All options issued and outstanding are being amortized over their respective vesting periods. During the three and six months ended June 30, 2021 and 2020, the Company recorded option expense of $1.2 million and $0.6 million, respectively and $2.0 million and $1.2 million, respectively. Unrecognized compensation expense for options at June 30, 2021 was $5.9 million.
The following table summarizes warrant activity for the six months ended June 30, 2021:
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef