Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation

v3.19.1
Stock-based Compensation
3 Months Ended
Mar. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-based Compensation

4. Stock-based Compensation

The Company recognized stock-based compensation on all employee and non-employee awards as follows:

 

 

 

For the Three Months Ended March 31, 2019

 

 

For the Three Months Ended March 31, 2018

 

Research and development

 

$

36,303

 

 

$

8,856

 

General and administrative

 

 

109,526

 

 

 

109,468

 

Total Stock-based compensation

 

$

145,829

 

 

$

118,324

 

 

At the Company’s Annual Meeting of Shareholders held on June 22, 2018, the shareholders approved an amendment to the Company’s 2012 Incentive Plan solely to increase the shares available for awards thereunder by 1,500,000 shares. The aggregate number of shares of the Company’s common stock currently authorized pursuant to its 2012 Incentive Plan, as amended is 2,250,000 and the Company’s 2012 Incentive Plan, as amended (the “Plan”) continues to provide that the maximum number of shares that may be subject to stock options and stock appreciation rights granted to any individual in a calendar year is 1,000,000 shares. The Plan also provides that the maximum number of shares that may be subject to awards (other than stock options and stock appreciation rights) intended to qualify as “performance-based compensation” under Section 162(m) of the Internal Revenue Code that may be granted to any individual in one calendar year is 1,000,000 shares (however, the exception for “performance-based compensation” under Code Section 162(m) was repealed in the Tax Cuts and Jobs Act of 2017, unless the awards intended to qualify for such exception were granted before November 2, 2017). As of March 31, 2019, an aggregate of 1,862,133 shares of common stock are covered by outstanding option awards and 147,117 shares of common stock are available for future awards under the Plan.

The Company granted 50,000 and -0- stock options under its Plan, with a weighted-average grant date fair value of $0.59 and $0.00 per share, during three months ended March 31, 2019 and March 31, 2018, respectively.

During the three months ended March 31, 2019, no stock options previously granted under the Plan have vested, no stock options were forfeited, and no stock options were exercised.

Each executive officer and non-employee director receiving equity-based awards is subject to a minimum dollar value stock ownership holding requirement with respect to the awards received as well as all prior equity awards under the Plan which requirements are intended to align the ability to sell shares with the performance of the Company’s stock price. The executive officer recipients each have a minimum dollar value stock ownership holding requirement threshold equal to two times (2x) their then base salaries below which dollar threshold they would be precluded from selling any shares of Company stock obtained from the Company under its Plan. Also, the non-employee directors are each subject to a minimum dollar value stock ownership holding requirement threshold equal to six times the annual Board retainer ($270,000) below which dollar threshold they would be precluded from selling shares of Company stock acquired from the Company under its Plan.