Note 6 - Share-based Payments

Equity incentive Plans

2013 Stock Incentive Plan

On January 23, 2014, the Company adopted the 2013 Stock Incentive Plan (“2013 Plan”). The 2013 Plan was amended by the Board on January 9, 2015 and September 30, 2016, and such amendments were ratified by shareholders on December 7, 2018. The 2013 Plan provides for the issuance of up to 103,750 shares of the Company’s common stock. As of September 30, 2019, grants of restricted stock and options to purchase 68,464 shares of Common Stock have been issued pursuant to the 2013 Plan, and 35,286 shares of Common Stock remain available for issuance.

2017 Stock Incentive Plan

On August 7, 2017, the shareholders approved and the Company adopted the 2017 Stock Incentive Plan (“2017 Plan”). The 2017 Plan provides for the issuance of up to 168,750 shares of the Company’s common stock. As of September 30, 2019, grants of restricted stock and options to purchase 69,782 shares of Common Stock have been issued pursuant to the 2017 Plan, and 98,968 shares of Common Stock remain available for issuance.

2018 Stock Incentive Plan

On December 7, 2018, the shareholders approved and the Company adopted the 2018 Stock Incentive Plan (“2018 Plan”). The 2018 Plan provides for the issuance of up to 1,875,000 shares of the Company’s common stock. As of September 30, 2019, grants of RSUs to purchase 374,481 shares of Common Stock have been issued pursuant to the 2018 Plan, and 1,500,519 shares of Common Stock remain available for issuance.

Stock Options

The following table summarizes the option activities for the nine months ended September 30, 2019:

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $0.44 for the Company’s common shares on September 30, 2019. As the closing stock price on September 30, 2019 is lower than the exercise price, there is no intrinsic value to disclose.

As of September 30, 2019, all the Company’s outstanding stock options were fully vested and exercisable.

During the three months ended September 30, 2019 and 2018, the Company incurred stock option expenses totaling $0 and $1,477, respectively and $0 and $6,931 for the nine months ended September 30, 2019 and 2018, respectively.

Restricted Stock Units

On March 29, 2019, the Compensation Committee of the Board of Directors approved the grant of 124,827 Restricted Stock Units (“RSU”) to each of the three directors. Each RSU had a grant date fair value of $0.97 which shall be amortized on a straight-line basis over the vesting period into administrative expenses within the Condensed Consolidated Statement of Operations and Comprehensive Loss. Such RSUs were granted under the 2018 Plan, and shall vest on January 1, 2020, with vesting accelerated upon a change of control. Upon vesting, such RSUs are settled with the issuance of common stock, including on a net of tax basis, at the discretion of the holder.

At September 30, 2019, the unamortized value of the RSU’s was $121,083. The unamortized amount will be expensed over the remaining period of three months. A summary of activity related to RSUs for the nine months ended September 30, 2019 is presented below:

During the three and nine months ended September 30, 2019, the Company incurred RSU expense of $119,780 and $242,165, respectively.

Stock Warrants

The table below summarizes the warrant activity for the period ended September 30, 2019:

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $0.44 for the Company’s common shares on September 30, 2019. All warrants were vested on date of grant.