Quarterly report pursuant to Section 13 or 15(d)

9. STOCK COMPENSATION

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9. STOCK COMPENSATION
3 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
STOCK COMPENSATION

9. STOCK COMPENSATION

 

The following tables summarize share-based compensation expenses relating to RSUs and stock options and the effect on basic and diluted loss per common share during the three month periods ended June 30, 2020 and 2019:

 

    Three Months
Ended
June 30,2020
    Three Months
Ended
June 30, 2019
 
Vesting of stock options and restricted stock units   $ 84,207     $ 326,536  
Total stock-based compensation expense   $ 84,207     $ 326,536  
                 
Weighted average number of common shares outstanding – basic and diluted     9,632,977       1,270,484  
                 
Basic and diluted loss per common share attributable to stock-based compensation expense   $ (0.01 )   $ (0.26 )

 

All of the stock-based compensation expense recorded during the three months ended June 30, 2020 and 2019, which totaled $84,207 and $326,536, respectively, is included in payroll and related expense in the accompanying condensed consolidated statements of operations.  Stock-based compensation expense recorded during the three months ended June 30, 2020 and 2019 represented an impact on basic and diluted loss per common share of $(0.01) and $(0.26), respectively.

   

We review share-based compensation on a quarterly basis for changes to the estimate of expected award forfeitures based on actual forfeiture experience. The cumulative effect of adjusting the forfeiture rate for all expense amortization is recognized in the period the forfeiture estimate is changed. The effect of forfeiture adjustments for the three months ended June 30, 2020 was insignificant.

   

Stock Option Activity

 

We did not issue any stock options during the three months ended June 30, 2020.

 

Options outstanding that have vested as of June 30, 2020 and options that are expected to vest subsequent to June 30, 2020 are as follows:

 

    Number of
Shares
    Weighted
Average
Exercise
Price
    Weighted
Average
Remaining
Contractual
Term in
Years
 
Vested     28,098     $ 64.92       5.03  
Expected to vest     23,026     $ 18.75       8.00  
Total     51,124                  

  

A summary of stock option activity during the three months ended June 30, 2020 is presented below:

 

    Amount     Range of
Exercise Price
    Weighted
Average
Exercise
Price
 
Stock options outstanding at March 31, 2020     51,124     $ 18.75 - 187.50     $ 44.12  
Exercised                  
Granted                  
Cancelled/Expired                  
Stock options outstanding at June 30, 2020     51,124     $ 18.75 - 187.50     $ 44.12  
Stock options exercisable at June 30, 2020     28,098     $ 18.75 - 187.50     $ 64.92  

 

On June 30, 2020, our stock options had no intrinsic value since the closing price on that date of $2.03 per share was below the weighted average exercise price of our outstanding stock options.

 

At June 30, 2020, there was approximately $2,058,000 of unrecognized compensation cost related to share-based payments, which is expected to be recognized over a weighted average period of 6.1 years.