Stockholders' Equity (Deficit)

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Stockholders’ equity (deficit):

7. Stockholders’ equity (deficit):

Common stock options:

At December 31, 2018, the Company has two stock-based employee compensation plans, the 2009 Stock Compensation Plan, and the 2011 Stock Compensation Plan. The Company may also grant options to employees, directors and consultants outside of the 2009 and 2011 plans under individual plans.

Information with respect to the Stock Compensation Plans at December 31, 2018 is as follows:

	2009 Stock Compensation Plan		2011 Stock Compensation Plan
Shares authorized for issuance		7,000		1,250,000
Option vesting period		Quarterly over 3 years		Immediate/Quarterly over 3 years
Date adopted by shareholders		─		November 2011
Option term		7 Years		7 Years
Options outstanding		─		736
Options exercisable		─		95
Weighted average exercise price		$─		$3.65

Valuation and Expense Information:

The weighted-average fair value of stock-based compensation is based on the Black Scholes Merton valuation model.

Forfeitures are estimated and it is assumed no dividends will be declared. The estimated fair value of stock-based compensation awards to employees is amortized over the vesting period of the options. The fair value calculations are based on the following assumptions:

	Year Ended December 31, 2018	Year Ended December 31, 2017
Risk free interest rate	1.91%	1.56% - 1.79%
Expected life (years)	6.3	5.30 – 6.80
Expected volatility	180.51%	184.14% - 212.15%
Expected dividends	None	None
Estimated average forfeiture rate	1.91%	5.87%

The following table summarizes the allocation of stock-based compensation expense for the years ended December 31, 2018 and 2017. There were no stock options exercised during the years ended December 31, 2018 and 2017.

	December 31, 2018		December 31, 2017
Research and development	$	86	$	60
General and administrative		115		51
Director options and consultants		24		32
Stock-based compensation expense included in operating expenses	$	225	$	143

As of December 31, 2018, there was $212 of total unrecognized compensation cost related to non-vested share-based compensation arrangements. The unrecognized compensation cost is expected to be recognized over a weighted average period of 2.2 years.

The cash flows from tax benefits for deductions in excess of the compensation costs recognized for share-based payment awards would be classified as financing cash flows. Due to the Company’s loss position, there were no such tax benefits during the year ended December 31, 2018.

The summary activity for the Company’s 2011 Stock Compensation Plans is as follows:

	December 31, 2018									December 31, 2017
	Shares			Weighted Average Exercise Price per share		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Life (in years)		Shares			Weighted Average Exercise Price per share		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Life (in years)
Outstanding at beginning of period		736		$	3.65	$	─				71		$	45.21	$	─
Granted		393		$	0.78	$	─				899		$	0.50	$	─
Forfeited/ Cancelled		(92	)	$	13.91	$	─				(234	)	$	4.24	$	─
Outstanding at period end		1,037		$	1.65	$	─		5.92		736		$	3.65	$	─		6.34
Options vested and exercisable at period end		320		$	3.92	$	─		5.40		95		$	24.41	$	─		4.12
Weighted average grant-date fair value of options granted during the period	$	0.76								$	0.33

The following table summarizes significant ranges of outstanding and exercisable options as of December 31, 2018:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Options Outstanding		Weighted Average Remaining Contractual Life (in years)		Weighted Average Exercise Price per share		Number Outstanding		Weighted Average Exercise Price per share
$0.01 ─ $25.00		1,010		6.02	$	0.63		292	$	0.62
$25 ─ $625		27		2.25	$	38.81		28	$	38.81
		1,037		5.92	$	1.65		320	$	3.92

A summary of the status of the Company’s non-vested shares as of December 31, 2018 is as follows:

Non-vested Shares	Shares			Weighted Average Grant-Date Fair Value per share
Non-vested at January 1, 2018		641		$	0.39
Granted		393		$	0.76
Canceled/Forfeited		(55	)	$	0.31
Vested		(262	)	$	0.65
Non-vested at December 31, 2018		717		$	0.54

An employee or consultant desiring to exercise or convert his or her stock options must provide a signed notice of exercise to the Chief Financial Officer. Once the exercise is approved an issue order is sent to the Company’s transfer agent and by certificate or through other means of conveyance, the shares are delivered to the employee or consultant, generally within three business days.

The Company expects to make additional option grants in future years. The options issued to employees and directors will be subject to the same provisions outlined above, which may have a material impact on the Company’s financial statements.

Treasury Stock:

In January 2012, the Company received 5 shares of Common Stock from Phoenix in settlement of a 16b claim brought by a Company stockholder against Phoenix, certain affiliates and the Company, as a nominal defendant. The Common Stock was valued at $325. In settlement of an indemnification claim brought by Phoenix in March 2012, resulting from the settlement of the 16b claim in January 2012, the Company issued to Phoenix 278 shares of Series C Preferred Stock valued at $417. The Company booked a $417 accretion amount for the beneficial conversion feature on the 278 shares of Series C Preferred Stock.

Warrants:

There were no warrants issued in 2018 and 2017. There were no warrant exercises in 2018 and 2017.

A summary of the warrant activity is as follows:

	December 31, 2018					December 31, 2017
	Shares			Weighted Average Exercise Price per share		Shares			Weighted Average Exercise Price per share
Outstanding at beginning of period		1,878		$	2.52		1,882		$	2.52
Expired		(50	)	$	15.63		(4	)	$	34.38
Outstanding at end of period		1,828		$	2.16		1,878		$	2.52
Exercisable at end of period		1,828		$	2.16		1,878		$	2.52

A summary of the status of the warrants outstanding as of December 31, 2018 is as follows:

Number of Shares Outstanding and Exercisable		Weighted Average Remaining Life (in years)		Weighted Average Exercise Price per share
	1,551		2.0	$	1.85
	277		0.12	$	0.25
	1,828		1.86	$	2.16

As of December 31, 2018, 2,865 shares of Common Stock were reserved for issuance upon exercise of outstanding options and warrants.