8. COMMON STOCK

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

COMMON STOCK

8. COMMON STOCK

Director Compensation

On September 17, 2019, the Board, upon the recommendation of its Compensation Committee, granted two directors annual grants of 12,500 shares each, and the lead director was issued an annual grant of 17,500 shares, which vest quarterly in four (4) equal installments. The grant date was determined to be September 17, 2019 as that was when a mutual understanding of the key terms and conditions of the grants was reached. On the grant date, these shares had a per share fair value of $5.50 based on the quoted trading price, or $233,750. 10,625 shares vested in 2019. During the three months ended March 31, 2020, 10,625 of these shares vested generating an expense of $53,447. At March 31, 2020, 21,250 shares were held unvested in escrow for these directors representing $116,872 of unrecognized restricted stock grant expense.

In addition, on October 1, 2019, the Board approved two grants of restricted stock of the Company to Mr. Wheatley under the 2011 Stock Incentive Plan. The total number of shares granted was determined based on an award of $150,000 divided by the per share quoted trading price on October 1, 2019. On the grant date, the shares had a per share fair value of $5.97 and 25,124 shares were granted. 12,562 shares vested in 2019. On March 31, 2020, an additional 4,188 of these shares vested generating an expense of $25,000 during the three months ended March 31, 2020. At March 31, 2020, 8,374 shares were held unvested in escrow for Mr. Wheatley representing $50,000 of unrecognized restricted stock grant expense.