During the months ended the Company granted stock options to employees with an exercise price of

The Company’s stock trading price on the date of grant is the basis of fair value of its common stock used in determining the value of share-based awards. To the extent the value of the Company’s share-based awards involves a measure of volatility, the Company relied on the volatilities from publicly traded companies with similar business models as its common stock lacked enough trading history for it to utilize its own historical volatility. For future grants, the Company plans to use historical volatility of the Company’s common stock over a period of time corresponding to the expected stock option term. The Company uses the simplified method to calculate the expected term of stock option grants to employees as the Company does have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term of stock options granted to employees. Accordingly, the expected life of the options granted is based on the average of the vesting term, which is generally years and the contractual term, which is generally years. The Company will continue to evaluate the appropriateness of utilizing such method. The risk-free interest rate is based on United States Treasury yields in effect at the date of grant for periods corresponding to the expected stock option term.

 

The Company has computed the fair value of all options granted during the months ended and using the following assumptions:

 

		Six Months Ended June 30,
		2019				2018
Expected volatility			35%			42%	-	43%
Expected dividends			None				None
Expected term (years)			7				7
Risk-free rate			2.61%			2.53%	to	2.63%
Forfeiture rate			20%				20%

 

The information below summarizes the stock options activity:

 

														Weighted
						Weighted				Weighted				Average
						Average				Average				Remaining
		Number of				Exercise				Fair				Contractual Life
		Shares				Price				Value				(Years)
Outstanding at December 31, 2017			1,003,916			$	4.18			$	1.87				8.1
Granted			145,792				7.00
Exercised			(95,162	)			3.48
Cancelled			(67,855	)			3.37
Outstanding at December 31, 2018			986,691			$	4.72			$	2.09				6.8
Granted			62,944				12.02
Exercised			(47,804	)			5.01
Cancelled			–				–
Outstanding at June 30, 2019			1,001,831			$	5.17			$	2.25				6.2
Exercisable at June 30, 2019			541,238			$	4.61			$	2.01				6.2

 

The aggregate intrinsic value of the Company’s stock options outstanding and expected to vest was at

 

The aggregate intrinsic value of the Company’s stock options exercisable was at

 

For the and months ended stock-based compensation expense for stock options was and respectively.  For the and months ended stock-based compensation expense for stock options was and respectively. Unrecognized stock-based compensation expense for stock options as of was which is expected to be recognized ratably over the next years.

 

Restricted stocks granted to employees generally vest in equal annual installments. Restricted stocks granted to non-employee directors typically vest in full year after the date of grant.

 

The information below summaries the restricted stock activity:

 

Restricted Stock Awards		Shares
Non-vested at December 31, 2018			51,134
Granted			26,131
Vested			(33,012	)
Cancelled			–
Non-vested at June 30, 2019			44,253

 

For the and months ended stock-based compensation expense for restricted stock was and respectively. For the and months ended stock-based compensation expense for restricted stock was and respectively.

 

Unrecognized stock-based compensation expense for restricted stock awards as of was which is expected to be recognized ratably over the next years.