Pursuant to the Founders Agreement, the Company issued 834,756 shares of common stock to Fortress for the Annual Stock Dividend, representing 2.5% of the fully diluted outstanding equity of the Company on March 12, 2018.

 

 

The Company has in effect the 2016 Incentive Plan (the “Incentive Plan”). The Incentive Plan was adopted in 2016 by our stockholders and the compensation committee of the Company’s board of directors and is authorized to grant stock-based awards to directors, officers, employees and consultants. The plan initially authorized grants to issue up to 2,000,000 shares of authorized but unissued common stock and expires 10 years from adoption and limits the term of each option to no more than 10 years from the date of grant. In June 2018, the Company’s stockholders approved an amendment to the Incentive Plan to increase the number of authorized shares issuable by 3,000,000 shares, for a total of 5,000,000 shares. Total shares available for the issuance of stock-based awards under the Incentive Plan was 2,915,325 shares at June 30, 2018.

 

The following table summarizes stock option activities for the six months ended June 30, 2018:

 

 

As of June 30, 2018, the Company had unrecognized stock-based compensation expense related to options of $1.2 million with a weighted average vesting period of approximately 1.4 years.

 

 

The following table summarizes restricted stock award activities for the six months ended June 30, 2018:

 

 

As of June 30, 2018, the Company had unrecognized stock-based compensation expense related to restricted stock of $1.1 million with a weighted average vesting period of approximately 2.8 years.

 

 

During the six months ended June 30, 2018, the Company granted 379,000 restricted stock units to employees and 200,000 restricted stock units to two consultants. The grants to the employees vest over 4 years on the anniversary date of the grant. The grants to the consultants vest 50% on date of grant and the remaining 50% over 4 years on the anniversary date of the grant.

 

The following table summarizes restricted stock units activities for the six months ended June 30, 2018:

 

 

As of June 30, 2018, the Company had unrecognized stock-based compensation expense related to restricted stock units of approximately $4.0 million with a weighted average vesting period of approximately 2.0 years.

 

The following table summarizes stock-based compensation expense for the three and six months ended June 30, 2018 and 2017 (in thousands).

 

 

 

A summary of warrant activities for six months ended June 30, 2018 is presented below:

 

 

Upon the exercise of warrants, the Company will issue new shares of common stock.