Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

v3.19.1
Stockholders' Equity
3 Months Ended
Mar. 31, 2019
Equity [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
Note 9 — Stockholders’ Equity
 
Stock-Based Compensation
 
On September 6, 2018, the Company’s board of directors approved an amendment and restatement of the Company’s omnibus incentive plan solely to reflect the Company’s name change to Edison Nation, Inc. Thus, the Edison Nation, Inc. Omnibus Incentive Plan (the “Plan”) which remains effective as of February 9, 2018, provides for the issuance of up to 1,764,705 shares of common stock to help align the interests of management and our stockholders and reward our executive officers for improved Company performance. Stock incentive awards under the Plan can be in the form of stock options, restricted stock units, performance awards and restricted stock that are made to employees, directors and service providers. Awards are subject to forfeiture until vesting conditions have been satisfied under the terms of the award. The exercise price of stock options are equal to the fair market value of the underlying Company common stock on the date of grant.
 
The following table summarizes stock option award activity for the three months ended March 31, 2019:
 
 
 
Shares
 
 
Weighted

Average

Exercise
Price
 
 
Remaining

Contractual

Life in
Years
 
 
Aggregate
Intrinsic Value
 
Balance, January 1, 2019
 
 
290,000
 
 
$
5.55
 
 
 
4.2
 
 
 
-
 
Granted
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Balance, March 31, 2019
 
 
290,000
 
 
$
5.55
 
 
 
4.1
 
 
 
-
 
Exercisable, March 31, 2019
 
 
166,667
 
 
$
5.32
 
 
 
4.1
 
 
 
-
 
 
As of March 31, 2019, there was 123,333 unvested options to purchase common units of Edison Nation, Inc. or $178,360 of total unrecognized equity-based compensation expense that the Company expected to recognize over a remaining weighted-average period of 1.4 years. The Company recorded stock-based compensation expense of $184,419 
for the three months ended March 31, 2019.
 The Company recorded stock-based compensation expense of $1,721,250, related to the assumption of certain consulting agreements which were satisfied by the principal stockholder of SRM transferring 344,250 shares to the consultants, for the three months ended March 31, 2018.
 
In addition, the Company recorded stock-based compensation expense of $178,000 related to the issuance of 10,500 shares of common stock valued at $52,500 and 50,000 shares of common stock issued in 2018 valued at $251,000, of which $125,500 was expensed for the three months ended March 31, 2019 and $125,500 was unrecognized compensation expense for the three months ended March 31, 2019.