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Stock-Based Compensation and Stock Options
6 Months Ended
Jun. 30, 2019
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation and Stock Options
Stock-Based Compensation and Stock Options
The Company accounts for its employee stock options under the fair value method, which requires stock-based compensation to be estimated using the fair value on the date of grant using an option-pricing model. The value of the portion of the award that is expected to vest is recognized on a straight-line basis as expense over the related employees’ requisite service periods in the Company’s condensed consolidated statements of operations.
In January 2012, the Company granted certain executives stock options to purchase 100,000 shares of common stock with an exercise price of $28.98, of which 25,000 options became exercisable annually starting January 23, 2013. The options expire in January 2022. During 2014, 25,000 options were canceled and 25,000 options were forfeited upon the departure of an executive. During the first quarter of 2019, the remaining 50,000 options were canceled upon the departure of an executive. Stock-based compensation related to these options was fully expensed.
In September 2015, the Company granted an executive stock options to purchase 400,000 shares of common stock with an exercise price of $8.07, of which 50,000 options became exercisable quarterly starting March 31, 2016. The options expire in September 2025. Stock-based compensation related to these options was fully expensed. As of June 30, 2019, 400,000 options were vested and outstanding.
In March 2016, the Company granted certain executives stock options to purchase 150,000 shares of common stock with an exercise price of $8.55, of which 37,500 options vest and become exercisable annually starting on March 7, 2017. The options expire in March 2026. In 2017, 37,500 options were forfeited and 12,500 options were canceled upon the departure of an executive and the compensation expense of $19,000 was reversed. In 2018, 50,000 options were forfeited upon the departure of an executive and the compensation expense of $59,000 was reversed. During the first quarter of 2019, the remaining 50,000 options were net exercised for 4,000 shares of common stock.

In October 2017, the Company granted an executive stock options to purchase 400,000 shares of common stock with an exercise price of $6.95, of which 50,000 shares are exercisable quarterly starting March 31, 2018 and ending on December 31, 2019. The options expire in 2027. During the six months ended June 30, 2019, 250,000 options were exercised. As of June 30, 2019, 150,000 options were outstanding and 50,000 of these options were vested. Total stock-based compensation for the three and six months ended June 30, 2019, related to these option grants was $143,000 and $287,000, respectively. As of June 30, 2019, there was approximately $287,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 0.5 years.

In April 2018, the Company granted an employee stock options to purchase 50,000 shares of common stock with an exercise price of $10.50. The options vest in twelve equal installments. The first installment vested on April 26, 2018, and the remaining eleven installments vest from June 30, 2018 to December 31, 2020. During the first quarter of 2019, the Company recognized $34,000 stock-based compensation and canceled the 50,000 options upon the departure of the employee.
In May 2018, the Company granted an employee options to purchase 50,000 shares of common stock with an exercise price of $14.70, of which 12,500 options will vest and become exercisable annually starting on May 2019. As of June 30, 2019, 50,000 options were outstanding and 12,500 of these options were vested. Total stock-based compensation for the three and six months ended June 30, 2019, related to these option grants was $22,000 and $45,000, respectively. As of June 30, 2019, there was approximately $257,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 2.9 years.
In June 2018, the Company granted an employee options to purchase 50,000 shares of common stock with an exercise price of $16.65, of which 12,500 options will vest and become exercisable annually starting on June 2019. As of June 30, 201950,000 options were outstanding and 12,500 of these options were vested. Total stock-based compensation for the three and six months ended June 30, 2019, related to these option grants was $7,000 and $32,000, respectively. As of June 30, 2019, there was approximately $247,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 3.0 years.
In May 2019, the Company granted an employee options to purchase 100,000 shares of common stock with an exercise price of $19.28, of which 10,000 options vested and became exercisable in May 2019, 15,000 options will vest and become exercisable in August 2019 if certain performance targets are met, and the remaining 75,000 will vest in three equal installments starting on May 20, 2021 and ending on May 20, 2023. As of June 30, 2019100,000 options were outstanding and 10,000 of these options were vested. Total stock-based compensation for the three months ended June 30, 2019, related to these option grants was $146,000. As of June 30, 2019, there was approximately $732,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 3.9 years.