In July 2018, the Company filed a shelf registration statement on Form S-3 (the "S-3"), which was declared effective in July 2018. Under the S-3, the Company may sell up to a total of $75 million of its securities. In connection with the S-3, the Company entered into an At-the-Market Issuance Sales Agreement (the "ATM") with B. Riley FBR, Inc., Cantor Fitzgerald & Co., National Securities Corporation, and Oppenheimer & Co. Inc. (each an "Agent" and collectively, the "Agents"), relating to the sale of shares of common stock. Under the ATM, the Company pays the Agents a commission rate of up to 3.0% of the gross proceeds from the sale of any shares of common stock.

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 2,685,325 shares at September 30, 2018.

 

The following table summarizes stock option activities for the nine months ended September 30, 2018:

 

 

As of September 30, 2018, the Company had unrecognized stock-based compensation expense related to options of $1.3 million with a weighted average vesting period of approximately 1.3 years.

 

 

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

 

As of September 30, 2018, the Company had unrecognized stock-based compensation expense related to restricted stock of $1.0 million with a weighted average vesting period of approximately 2.6 years.

 

 

Certain employees and consultants have been awarded restricted stock units with time-based vesting. The following table summarizes restricted stock units activities for the nine months ended September 30, 2018:

 

 

As of September 30, 2018, the Company had unrecognized stock-based compensation expense related to restricted stock units of approximately $3.4 million with a weighted average vesting period of approximately 1.9 years. This amount does not include, as of September 30, 2018, 230,000 shares of restricted stock units outstanding issued to non-employees, the expense for which is determined each reporting period at the measurement date. The expense is recognized over the vesting period of the award.

 

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

 

 

 

A summary of warrant activities for nine months ended September 30, 2018 is presented below:

 

 

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