SUBSEQUENT EVENT

12 Months Ended

Dec. 31, 2018

13. SUBSEQUENT EVENT

In January 2019, the Company entered into an Eighteenth Amendment to Lease with the landlord of its U.S. operating facility which became effective February 1, 2019. This amendment expands the Company’s space to 19,920 square feet and extends the term of the lease to May 2020. The amendment also includes a one year renewal option. The Company’s new base rent will be approximately $34,000 per month and monthly operating expenses of approximately $29,000 per month.

Pursuant to a review of the compensation of the senior management of the Company and managements’ performance in 2018, on March 4, 2018, the Board of Directors granted 22,220 restricted stock units to certain senior managers of the Company in order to settle bonuses accrued as of December 31, 2018. These awards were valued at approximately $179,000 at the date of issuance, based upon the market price of the Company’s common stock at the date of the grant, and vest one third on the date of the grant, one third on the first anniversary of the grant, and one third on the second anniversary of the date of the grant. For the year ended December 31, 2018, the Company recorded a charge of approximately $60,000 related to these restricted stock unit awards.