Stock-Based Compensation

6 Months Ended

Jun. 30, 2018

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

Stock-Based Compensation

Note 8. Stock–Based Compensation

Issuance of restricted common stock – directors, officers and employees

On March 1, 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.

On April 6, 2018, the Company granted 900,000 shares of restricted common stock to certain of its officers and directors in connection with the commencement of operations in Sweden. The Company valued the awards on their grant date and is expensing the grant date fair value over the 12 month vesting period.

On April 6, 2018, the Company granted 600,000 shares of restricted common stock to Mr. Robert Ladd in connection with his employment agreement to serve as the Company’s Chief Executive 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 six months ended June 30, 2018:

	Number of shares			Weighted average grant date fair value
Non–vested at January 1, 2018		3,850,000		$	1.42
Granted		2,250,000		$	1.48
Vested		(2,100,000	)	$	1.44
Forfeited		(550,000	)	$	1.06
Non–vested at June 30, 2018		3,450,000		$	1.52

For the three months ended June 30, 2018 and 2017, the Company has recorded $1,247 and $666, respectively, in employee and director stock-based compensation, which is a component of general and administrative expenses in the unaudited condensed consolidated statements of operations and comprehensive loss.

For the six months ended June 30, 2018 and 2017, the Company has recorded $2,334 and $666, in employee and director stock–based compensation expense, which is a component of general and administrative expenses in the unaudited condensed consolidated statement of operations and comprehensive loss.

As of June 30, 2018, unamortized stock-based compensation costs related to restricted share arrangements was $4,157, and will be recognized over a weighted average period of 1.21 years.

Stock options

The following is a summary of the Company’s stock option activity for the six months ended June 30, 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 – June 30, 2018		6,000,000	$	0.71	$	1.29		4.13	$	1,000
Exercisable – June 30, 2018		6,000,000	$	0.71	$	1.29		4.13	$	1,000

For the three months ended June 30, 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 expenses in the unaudited condensed consolidated statement of operations and comprehensive loss.

For the six months ended June 30, 2018 and 2017, the Company has recorded $0 and $1,925, respectively, in stock option related stock-based compensation expense, which is a component of general and administrative expenses in the unaudited condensed consolidated statement of operations and comprehensive loss.

As of June 30, 2018, there were no unrecognized compensation costs, as all outstanding stock options are fully vested.