Stock-Based Compensation

3 Months Ended

Mar. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Note 7. Stock–Based Compensation

Issuance of restricted common stock – directors, officers and employees

During the three months ended March 31, 2018, the Company granted 750,000 shares of restricted common stock to Mr. Robert Lowrey in connection with his employment agreement to serve as the Company’s Chief Financial Officer. The Company valued the award on its grant date and is expensing the grant date fair value over the 24 month vesting period.

The Company’s activity in restricted common stock was as follows for the three months ended March 31, 2018:

	Number of shares			Weighted average grant date fair value
Non–vested at January 1, 2018		3,850,000		$	1.42
Granted		750,000		$	1.97
Vested		(1,350,000	)	$	1.39
Forfeited		–
Non–vested at March 31, 2018		3,250,000		$	1.56

For the three months ended March 31, 2018 and 2017, in connection with the vesting of restricted common stock awards, the Company has recorded $1,087 and $338, in employee and director stock–based compensation expense, which is a component of general and administrative expense in the unaudited condensed consolidated statement of operations and comprehensive loss.

As of March 31, 2018, unamortized stock-based compensation costs related to restricted share arrangements was $3,892, and will be recognized over a weighted average period of 1.26 years.

Stock options

The following is a summary of the Company’s stock option activity for the three months ended March 31, 2018:

	Options		Weighted average exercise price		Weighted average Grant date fair value		Weighted average remaining life		Intrinsic value
Outstanding – January 1, 2018		6,000,000	$	0.71	$	1.29
Granted		–
Exercised		–
Forfeited/Cancelled		–
Outstanding – March 31, 2018		6,000,000	$	0.71	$	1.29		4.38	$	3,460
Exercisable – March 31, 2018		6,000,000	$	0.71	$	1.29		4.38	$	3,460

For the three months ended March 31, 2018 and 2017, the Company has recorded $0 and $962, respectively, in stock option related stock-based compensation expense, which is a component of general and administrative expense in the unaudited condensed consolidated statement of operations and comprehensive loss.

As of March 31, 2018, there were no unrecognized compensation costs, as all outstanding stock options are fully vested.