Note G — Stock-Based Compensation

We maintain stock incentive plans for the benefit of certain officers, directors, and employees. Our stock incentive plans provide for the ability to issue stock options, cash stock appreciation rights, performance stock units, phantom stock units and cash performance stock units. Our cash stock appreciation rights, phantom stock units and cash performance stock units settle solely in cash and are treated as the current liability, which are adjusted each reporting period based on changes in our stock price.

Compensation expense for stock-based awards is based on the fair values of the awards on the date of grant and is recognized on a straight-line basis over the vesting period of the entire award in the “Labor” line of the Consolidated Statements of Comprehensive Loss. We recognized

$0.8

million and

$1.1

million of stock-based compensation expense for the years ended

December 31, 2020

and

2019

, respectively.

May

2013,

our stockholders approved the

2013

Omnibus Incentive Plan (

“2013

Plan”), pursuant to which we

may

issue up to

500,000

shares of stock-based awards to directors, employees, and consultants, as adjusted for the reverse stock split. The

2013

Plan replaced the stockholder-approved

2005

Omnibus Incentive Plan (

“2005

Plan”), pursuant to which we issued equity securities to directors, officers, and key employees.

additional stock-based awards will be granted under the

2005

Plan, but awards previously granted under the

2005

Plan will remain outstanding in accordance with their respective terms. In

August 2018,

we filed a Form S-

to increase the total registered shares under

2013

Plan to

553,673

shares. As of

December 31, 2020

and

2019

, there were

20.7

thousand and

18.0

thousand shares available for grant under the

2013

Plan.

We recently established our

2020

Equity Incentive Plan (the

"2020

Plan") which has taken the place of the

2015

Equity Incentive Plan (the

“2015

Plan”). Any shares of common stock that remain eligible for issuance under the

2015

Plan are now eligible for issuance under the

2020

Plan. In

August 2020,

we filed a Form S-

to register up to an aggregate of

2,521,244

shares that

may

be issued under the

2020

Plan. The

2020

Plan provides for the issuance of stock-based awards to directors, employees and consultants.

additional stock-based awards will be granted under the

2013

plan, but awards previously granted under the

2013

Plan will remain outstanding in accordance with their respective terms. As of

December 31, 2020,

there were

million shares available for grant under the

2020

Plan.

We granted equity awards to our Chief Executive Officer and Chief Operating Officer in

2020

and

2019

, as a material inducement for acceptance of such positions. These options, restricted stock, and performance unit awards were

not

issued under the

2020

Plan and were

not

submitted for stockholder approval.

Stock Options

Options granted under the

2020

Plan,

2013

Plan or as inducement awards have an exercise price equal to the market value of the common stock on the grant date. These options become exercisable in

25%

increments on the

first

four

anniversaries of their date of grant and expire on the

tenth

anniversary of their date of grant. There were

options outstanding under the

2020

plan as of

December 31, 2020.

Options to purchase

thousand shares granted under

2013

Plan awards were outstanding at

December 31, 2020

, with exercise prices ranging from

$1.57

$115.2

per share. There were

inducement award options outstanding at

December 31, 2020

Options under the

2005

Plan were granted at exercise prices equal to the market value of the common stock on the grant date. All such awards have met their respective vesting dates. Options to purchase

thousand shares were outstanding under the

2005

Plan as of

December 31, 2020

, with exercise prices ranging from

$76.8

$184.65

per share.

Options granted to officers after

April 2015

vest in full upon a change in control if such options are

not

assumed or replaced by a publicly traded successor with an equivalent award (as defined in such officers' change in control severance agreements).

The following summarizes all stock option activity during the years ended

December 31, 2020

and

2019

						Weighted- Average
				Weighted-		Remaining		Aggregate
	Number of			Average		Contractual		Intrinsic Value
In thousands	Shares			Exercise Price		Term (Years)		(Thousands)
Options outstanding at December 31, 2018		171,369		$	60.66

Granted in 2019		31,906			1.57
Exercised in 2019		—			—				—
Unvested options forfeited in 2019		(25,392	)		10.00
Vested options expired in 2019		(51,187	)		59.84
Options outstanding at December 31, 2019		126,696		$	57.48
Adjustment and Correction		(7,500	)		53.61
Granted in 2020		—			—
Exercised in 2020		—			—				—
Unvested options forfeited in 2020		—			—
Vested options expired in 2020		(31,449	)		90.89
Options outstanding at December 31, 2020		87,747		$	40.25		5.46		—

Vested and expected to vest at December 31, 2020		87,747		$	40.25		5.46		—

Exercisable at December 31, 2020		80,336		$	43.28		5.25		—

The aggregate intrinsic value at year end in the table above represents the total pre-tax intrinsic value that would have been received by the option holders if all of the in-the-money options were exercised on

December 31, 2020

. The pre-tax intrinsic value is the difference between the closing price of our common stock on

December 31, 2020

and the exercise price for each in-the-money option. This value fluctuates with the changes in the price of our common stock.

The following table summarizes information about stock options outstanding at

December 31, 2020

Range of	Number		Weighted-Average		Weighted-Average		Number		Weighted-Average
Exercise Prices	Outstanding		Exercise Price		Remaining Life (Years)		Exercisable		Exercise Price
$1.57 - 7.40		46,727	$	3.42		8.32		39,316	$	2.67
$76.80 - 115.2		39,320		80.43		2.30		39,320		80.43
$123.10 - 184.65		1,700		123.10		0.10		1,700		123.10
		87,747	$	40.25		5.46		80,336	$	43.28

The fair value of each option grant is estimated on the date of grant using the Black-Scholes Option-Pricing Model based on the following weighted-average assumptions used for grants during

2020

and

2019

	Year Ended December 31,
	2020		2019
Expected term (in years)		—		5.50
Expected stock price volatility		—		40.53	%
Risk-free interest rate		—		1.86	%

Expected term is estimated using the simplified method, which takes into account vesting and contractual term. The simplified method is being used to calculate expected term instead of historical experience due to a lack of relevant historical data resulting from changes in option vesting schedules and changes in the pool of employees receiving option grants. Expected stock price volatility is based on the historical volatility from traded shares of our stock over the expected term. The risk-free interest rate is based on the rate of a

zero

-coupon U.S. Treasury instrument with a remaining term approximately equal to the expected term.

The weighted-average fair value of options granted during

2019

was

$1.67.

options were granted during

2020.

As of

December 31, 2020

, there was

$23

thousand of total unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted average period of approximately

1.74

years.

Cash Stock Appreciation Rights

2016

and

2017,

the Board approved grants of cash settling stock appreciation rights under the

2013

Plan. Cash stock appreciation rights vest in

25%

increments on the

first

four

anniversaries of the date of grant and expire after

years. Cash stock appreciation rights settle solely in cash and are treated as a liability.

The following summarizes all cash stock appreciation rights during the year ended

December 31, 2020

						Weighted-Average
				Weighted-		Remaining
	Number of			Average		Contractual Term
	Units			Grant Price		(Years)
Cash stock appreciation rights outstanding at December 31, 2018		12,676		$	9.70		8.48

Granted in 2019		—			—
Exercised in 2019		—			—
Expired in 2019		—			—
Forfeited in 2019		—			—
Cash stock appreciation rights outstanding at December 31, 2019		12,676		$	9.70		7.48

Granted in 2020		—			—
Exercised in 2020		—			—
Expired in 2020		(9,507	)		9.70
Forfeited in 2020		(3,169	)		9.70
Cash stock appreciation rights outstanding at December 31, 2020		—		$	—		—

Vested balance at December 31, 2020		—		$	—		—

The fair value of each cash stock appreciation right is estimated on the date of grant using the Black-Scholes Option-Pricing Model and is revalued at the end of each period. Changes in fair value are recorded to the income statement as changes to expense. As of

December 31, 2020

, there was

unrecognized compensation cost related to unvested cash stock appreciation right grants.

Restricted Stock Units

Restricted stock units granted as inducement awards or under the

2020

Plan and

2013

Plan vest in

three

equal increments on the

first

three

anniversaries of their date of grant. Restricted stock units settle in treasury stock and are treated as equity. Outstanding restricted stock units granted to officers as inducement awards or under the

2013

Plan vest in full (to the extent

not

previously vested) upon a change in control if such unvested shares are

not

assumed or replaced by a publicly-traded successor with an equivalent award (as such terms are defined in such officers' change-in-control severance agreements).

The following summarizes all restricted stock units' activity during

2020

and

2019

				Weighted-
	Number of			Average Grant
	Shares			Date Fair Value
Unvested shares outstanding at December 31, 2018		107,415		$	9.98

Granted in 2019		383,569			3.26
Settled in 2019		(39,858	)		9.65
Forfeited in 2019		(22,835	)		10.07
Unvested shares outstanding at December 31, 2019		428,291		$	3.99
Adjustment and Correction		13,158			3.99
Granted in 2020		730,150			2.02
Settled in 2020		(303,020	)		3.96
Forfeited in 2020		(78,870	)		3.46
Unvested shares outstanding at December 31, 2020		789,709		$	2.22

The fair value of each restricted stock unit is estimated on the date of grant as the closing market price of our common stock on the date of grant. As of

December 31, 2020

, there was

$1.4

million of total unrecognized compensation cost related to restricted stock units. This cost is expected to be recognized over a weighted average period of approximately

2.03

years.

Phantom Stock Units

2016

and

2017,

the Board approved grants of phantom stock units under the

2013

Plan. Phantom stock units vest in

25%

increments on the

first

four

anniversaries of the date of grant. Phantom stock units settle solely in cash and are treated as a liability. Grants of phantom stock units made to officers under the

2013

Plan vest in full (to the extent

not

previously vested) upon a change in control if they are

not

assumed or replaced by a publicly-traded successor with an equivalent award (as such terms are defined in such officers' change-in-control severance agreements).

The following summarizes all phantom stock unit activity during

2020

and

2019

				Weighted-
	Number of			Average Grant
	Units			Date Fair Value
Phantom stock units outstanding at December 31, 2018		32,811		$	14.39

Granted in 2019		—			—
Settled in 2019		(11,449	)		16.01
Forfeited in 2019		(6,542	)		13.49
Phantom stock units outstanding at December 31, 2019		14,820		$	13.55
Adjustment and Correction		(786	)
Granted in 2020		—			—
Settled in 2020		(8,032	)		16.40
Forfeited in 2020		(1,656	)		9.70
Phantom stock units outstanding at December 31, 2020		4,346		$	9.70

The fair value of each phantom stock unit is estimated on the date of grant as the closing market price of our common stock on the date of grant. Changes in our stock price will result in adjustments to compensation expense and the corresponding liability over the applicable service period. As of

December 31, 2020

, there was

$10

thousand of total unrecognized compensation cost related to phantom stock units. This cost is expected to be recognized over a weighted average period of approximately

0.48

years.

Performance Stock Units

Under the

2020

Plan and

2013

Plan and grants of inducement awards, performance stock units are a form of share-based award similar to unvested shares, except that the number of shares ultimately issued is based on our performance against specific performance goals over a roughly

three

-year period. At the end of the performance period, the number of shares of stock issued will be determined in accordance with the specified performance target(s) in a range between

and

100%.

Performance stock units vest solely in common stock and are treated as equity. Upon a change in control, performance stock units granted to officers vest on a pro-rated basis (based on time elapsed from the grant) to the extent

not

previously settled if they are

not

assumed or replaced by a publicly-traded successor with an equivalent award (as such terms are defined in such officers' change-in-control severance agreements).

The following summarizes all performance stock unit activity during

2020

and

2019

				Weighted-
	Number of			Average Grant-
	Units			Date Fair Value
Performance stock units outstanding at December 31, 2018		38,529		$	10.50

Granted in 2019		417,035			2.67
Settled in 2019		—			—
Forfeited in 2019		(247,635	)		3.36
Performance stock units outstanding at December 31, 2019		207,929		$	3.27
Adjustment and Correction		(52,632	)		—
Granted in 2020		—
Settled in 2020		(4,225	)		9.70
Forfeited in 2020		(118,804	)		2.79
Performance stock units outstanding at December 31, 2020		32,268		$	4.14

The fair value of each performance stock unit is estimated on the date of grant as the closing market price of our common stock on the date of grant, minus the present value of anticipated dividend payments. Periodic compensation expense is based on the current estimate of future performance against specific performance goals over a

three

-year period and is adjusted up or down based on those estimates. As of

December 31, 2020

, there was

$75

thousand of total unrecognized compensation cost related to performance stock units. This cost is expected to be recognized over a weighted average period of approximately

8.69

years.

Cash Performance Stock Units

2016

and

2017,

the Board of Directors approved grants of cash performance stock units under the

2013

Plan. Cash performance stock units are a form of share-based award similar to phantom stock units, except that the number of units ultimately issued is based on our performance against specific performance goals measured after a

three

-year period. At the end of the performance period, the number of units vesting will be determined in accordance with specified performance target(s) in a range between

and

100%.

Cash performance stock units settle solely in cash and are treated as a liability. Upon a change in control, cash performance stock units granted to officers vest on a pro-rated basis (based on time elapsed from the grant) to the extent

not

previously settled if they are

not

assumed or replaced by a publicly-traded successor with an equivalent award (as such terms are defined in such officers' change-in-control severance agreements).

The following summarizes all performance stock unit activity during

2020

and

2019

				Weighted-
	Number of			Average Grant-
	Shares			Date Fair Value
Cash performance stock units outstanding at December 31, 2018		3,778		$	26.90

Granted in 2019		—			—
Settled in 2019		—			—
Forfeited in 2019		(3,778	)		26.90
Cash performance stock units outstanding at December 31, 2019		—			—

Granted in 2020		—			—
Settled in 2020		—			—
Forfeited in 2020		—			—
Cash performance stock units outstanding at December 31, 2020		—		$	—

The fair value of each cash performance stock unit is estimated on the date of grant as the closing market price of our common stock on the date of grant, minus the present value of anticipated dividend payments. Periodic compensation expense is based on the current estimate of future performance against specific performance goals over a

three

-year period and is adjusted up or down based on those estimates. As of

December 31, 2020

, there was

unrecognized compensation cost related to cash performance stock units.