Under the Company’s stock option plan, options, rights and other entitlements be granted to directors, officers, employees and consultants of the Company to purchase up to a maximum of of the total number of outstanding common shares, estimated at million options, rights and other entitlements as at Options are granted at the fair market value of the common shares on the closing trading price of the Company’s stock on the day prior to the grant if the grant is made during the trading day or the closing trading price on the day of grant if the grant is issued after markets have closed. Options vest at various rates (immediate to years) and have a term of years.

 

Stock option transactions for the months ended are summarized as follows:

 

Option numbers are in (000’s)
						Nine months ended September 30, 2019				Weighted average
		Options				Weighted average exercise price				remaining contractual life (years)
Outstanding, beginning of period			4,489			$	3.11
Granted			2,018				1.97
Exercised			(34	)			1.11
Forfeited			(322	)			2.36
Expired			(47	)			4.33
Outstanding, end of the period			6,104				2.81				7.82
Exercisable, end of the period			3,340				3.34				6.82
Vested and expected to vest, end of period			5,689				2.86				7.66

  

As of there was million of total unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over an estimated weighted-average period of years.

 

The following table presents the weighted average assumptions that were used in the Black-Scholes option pricing model to determine the fair value of stock options granted during the period, and the resultant weighted average fair values:

 

		Nine months ended September 30, 2019				Nine months ended September 30, 2018
Risk-free interest rate			2.21	%			2.43	%
Expected dividend yield			-				-
Expected volatility			83.9	%			93.4	%
Expected life of options (years)			5				5
Grant date fair value		$	1.32			$	2.23

 

The Company uses historical data to estimate the expected dividend yield and expected volatility of its common shares in determining the fair value of stock options. The expected life of the options represents the estimated length of time the options are expected to remain outstanding.

 

Stock options granted by the Company during the months ended vest after year and on each of the next anniversaries, except for options which vest after year and on each of the next anniversaries and options which vest after year.

 

Stock options granted by the Company during the months ended vest after year and on each of the next anniversaries, except for options which vest after year and on each of the next anniversaries and options which vested immediately on the grant date.

 

 

The Company has a stock incentive plan (SIP) pursuant to which the Board grant stock-based awards comprised of restricted stock units or dividend equivalents to employees, officers, consultants, independent contractors, advisors and non-employee directors of the Company. Each restricted unit is automatically redeemed for common share of the Company upon vesting. The following table presents the activity under the SIP plan for the months ended and the units outstanding.

 

		Nine months ended, September 30, 2019								Nine months ended, September 30, 2018
		Number (in thousands)				Weighted average grant date fair value				Number (in thousands)				Weighted average grant date fair value
Outstanding, beginning of period		-				$-				-				$-
Granted			80				2.0				150				3.35
Redeemed			(40	)			2.0				-				-
Outstanding, end of period			40			$	2.0				150			$	3.35

 

On the Company granted restricted share units (RSUs), restricted share units of which have a vesting term of months and the balance having a vesting term of year. On of these restricted share units were vested and were redeemed for common shares.

 

On the Company granted restricted share units with a vesting term of months.

 

The grant date fair value of the RSUs and were respectively determined as the closing value of the common shares of the Company on the Nasdaq Stock Market on the date prior to the date of grant.

 

 

The Company recorded share-based payment expense related to stock options and RSUs as follows:

 

		Three months ended September 30,								Nine months ended September 30,
		2019				2018				2019				2018
Research and development		$	34			$	307			$	309			$	826
General and administrative			470				644				1,425				2,869
		$	504			$	951			$	1,734			$	3,695