Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

v3.19.2
Stockholders' Equity
6 Months Ended
Jun. 30, 2019
Stockholders' Equity  
Stockholders' Equity

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 represents total stock compensation expense by award type related to stock performance awards, restricted stock units, stock options and awards made to non-employees, for the three and six months ended June 30, 2019 and 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

June 30,

 

June 30,

 

    

2019

    

2018

    

2019

    

2018

Stock option awards

 

$

100,687

 

$

 —

 

$

144,605

 

$

 —

Non-employee awards

 

 

196,200

 

 

 —

 

 

463,300

 

 

1,721,250

Restricted stock unit awards

 

 

 —

 

 

306,000

 

 

 —

 

 

306,000

Phantom stock awards

 

 

49,184

 

 

 —

 

 

100,585

 

 

 —

 

 

$

346,071

 

$

306,000

 

$

708,490

 

$

2,027,250

 

The stock-based compensation is included in selling, general and administrative expense for the three and six months ended June 30, 2019 and 2018, respectively.

Stock option awards

The following table summarizes stock option award activity for the six months ended June 30, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

Weighted

    

Remaining

    

 

 

 

 

 

Average

 

Contractual

 

 

 

 

 

 

Exercise

 

Life in

 

Aggregate

 

 

Shares

 

Price

 

Years

 

Intrinsic Value

Balance, January 1, 2019

 

290,000

 

$

5.55

 

4.2

 

 —

Granted

 

 —

 

 

 —

 

 —

 

 —

Forfeited

 

 —

 

 

 —

 

 

 

 

Balance, June 30, 2019

 

290,000

 

$

5.55

 

3.7

 

 —

Exercisable, June 30, 2019

 

236,667

 

$

5.23

 

3.7

 

 —

 

As of June 30, 2019, there was 53,333 unvested options to purchase shares of the Company’s common stock or $77,674 of total unrecognized equity-based compensation expense that the Company expected to recognize over a remaining weighted-average period of 0.9 years.

Non-employee awards

From time to time, the Company grants shares of common stock to non-employee vendors for services performed. The awards are valued at the market value of the underlying common stock at the date of grant and vest based on the terms of the contract which is usually upon grant.