Stock Based Compensation

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock Based Compensation

5. Stock Based Compensation

The Company has a 2000 Long-Term Incentive Plan, which expired on August 6, 2010. As of June 30, 2020, there were 1,521 shares subject to outstanding stock options under this plan. No further shares are available for future grant under this plan.

The Company also has a 2008 Stock Incentive Plan under which 5 million shares of common stock are reserved for issuance. As of June 30, 2020, there were approximately 2.3 million shares subject to outstanding stock options and approximately 0.8 million shares outstanding related to restricted stock grants issued from the 2008 Plan. This plan expired on November 20, 2018 and thus no further shares are available for future grant under this plan.

In 2019, the Company adopted a 2019 Stock Incentive Plan under which 5.4 million shares of common stock are reserved for issuance. As of June 30, 2020, there were 5.4 million shares subject to outstanding stock options. This Plan expires on November 14, 2029.

The following table sets forth the total stock-based compensation expense resulting from stock options, restricted stock and warrants included in our Condensed Consolidated Statements of Operations:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Research and development	$	—	$	—	$		$	(2,672	)
General and administrative — employee		86,659		214,706		173,321		427,880
Total employee stock-based compensation	$	86,659	$	214,706	$	173,321	$	425,208

Options

There were no options granted in either periods ended June 30, 2020 and June 30, 2019.

Presented below is our stock option activity:

	Six Months Ended June 30, 2020
	Number of Options (Employees)			Number of Options (Non-Employees)		Total Number of Options			Weighted-Average Exercise Price
Outstanding at January 1, 2020		7,126,340			615,000		7,741,340		$	3.32
Granted		—			—		—			—
Forfeited or expired		(3,570	)		—		(3,570	)	$	32.76
Outstanding at June 30, 2020		7,122,770			615,000		7,737,770		$	3.31
Exercisable at June 30, 2020		7,075,104			615,000		7,690,104		$	3.32

The following table summarizes significant ranges of outstanding stock options under our plans at June 30, 2020:

Range of Exercise Prices		Number of Options		Weighted-Average Remaining Contractual Life (years)		Weighted-Average Exercise Price		Number of Options Exercisable		Weighted-Average Remaining Contractual Life (years)		Weighted-Average Exercise Price
$	0.26 – $1.00		5,400,000		9.46	$	0.26		5,400,000		9.46	$	0.26
$	1.01 – $3.00		1,050,673		7.11	$	2.04		1,003,007		7.00	$	2.04
$	3.01 – $15.00		852,360		4.47	$	12.56		852,360		4.47	$	12.56
$	15.01 –$42.42		434,737		3.44	$	26.13		434,737		3.44	$	26.13
			7,737,770		8.25	$	3.32		7,690,104		8.24	$	3.32

The Company recorded stock compensation costs related to vesting of options during the period of $30,392 and $60,787, respectively, for the three and six-month periods ended June 30, 2020, as compared to $75,410 and $148,146, respectively, for the three and six-month periods ended June 30, 2019. As of June 30, 2020, there remained approximately $0.1 million of unrecognized compensation expense related to unvested stock options granted to current employees, which we expect will be recognized over a weighted-average period of 0.31 years. The aggregate intrinsic value of the outstanding options and options vested as of June 30, 2020 was $2.3 million.

At June 30, 2020 and December 31, 2019, there were warrants outstanding to purchase 193,196, at a weighted-average exercise price of $8.60, in each period.

Restricted Stock

In December 2017, the Company granted to Steven Kriegsman, Chief Executive Officer, 387,597 shares of restricted common stock, pursuant to the 2008 Plan. This restricted stock vests in equal annual instalments over three years. The fair value of the restricted stock is based on the market price of the Company’s shares on the grant date less the par value received as consideration. The fair value of the restricted stock on the grant date was $679,000. In December 2016, the Company granted to Steven Kriegsman, Chief Executive Officer, 387,597 shares of restricted common stock, pursuant to the 2008 Plan. This restricted stock vests in equal annual instalments over three years. The fair value of the restricted stock is based on the market price of the Company’s shares on the grant date less the par value received as consideration. The fair value of the restricted stock on the grant date was $1,000,000. The Company recorded an employee stock-based compensation expense for restricted stock of $56,267 and $112,534 respectively, for the three and six-month periods ended June 30, 2020 as compared to $139,296 and $277,062 respectively, for the three and six-month periods ended June 30, 2019. As of June 30,2020, there remained approximately $110,000 of unrecognized compensation expense related to the vesting of these shares.