Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

Stockholders' Equity

6 Months Ended

Jun. 30, 2020

Stockholders’ Equity

Shares issued

During the six months ended June 30, 2020, the Company issued 113,349 shares of common stock upon vesting of Restricted Stock Units ("RSUs") granted by the Company.

During the six months ended June 30, 2020, the Company issued 1,676,680 shares of common stock granted to Company Employees.

During the six months ended June 30, 2020, the Company issued 233,779 shares of common stock upon vesting of RSUs granted to Board members.

During the six months ended June 30, 2020, the Company issued 227,876 shares of common stock to a prior Company executive to fulfill obligations related to separation agreement.

During the six months ended June 30, 2020, the Company issued 23,078 shares of common stock to a consultant to fulfill obligations related to a consulting agreement.

During the six months ended June 30, 2020, the Company issued 1,554 shares of common stock pursuant to the Officers and Directors Purchase Plan for proceeds of $1,500.

Stock-based compensation

The stock-based compensation expense was allocated as follows:


	Three months ended June 30,						Six months ended June 30,
	2020		2019		2020		2019
Cost of product sales	$	22	$	17	$	44	$	92
Research and development cost	15		19		120		134
General and administrative expense	517		894		1,346		1,772
Total	$	554	$	930	$	1,510	$	1,998

The following assumptions were used in the Black-Scholes-Merton pricing model to estimate the fair value of options granted during the periods presented. There were no options issued during the three and six months ended June 30, 2020:


	Three months ended June 30,			Six months ended June 30,
		2019		2019

Expected stock volatility		86.3% - 87.5%		82.3% - 87.5%
Risk free interest rate		2.2% - 2.3%		2.2% - 2.5%
Expected years until exercise		2.8 - 3.4		2.2 - 2.5
Dividend yield		0	%	0	%

There were no stock option exercises during the three and six months ended June 30, 2020 and June 30, 2019.

Restricted shares

In March 2020, the Company granted 830,000 restricted shares, all of which were subject to vesting, with a grant fair value of $280,000 to employees. The shares vest in three equal annual installments over a three-year period. No shares vested during the six months ended June 30, 2020.

Restricted stock units

In March 2020, the Company granted 1,293,164 RSUs, all of which were subject to vesting, with a grant fair value of $440,000 to employees. The shares vest in six equal semi-annual installments over a three-year period. No shares vested during the six months ended June 30, 2020.

In May 2020, the Company issued 1,970,475 RSUs, that were originally granted in March 2020, but were subject to approval of the amendment of the 2019 stock incentive plan at the Annual Shareholders Meeting. All of the RSUs were subject to vesting, with a grant fair value of $670,000 to employees. The shares vest in six equal semi-annual installments over a three-year period. No shares vested during the six months ended June 30, 2020.