Note 8.   Share-based Compensation

The Company’s 2017 Stock Plan (the “Plan”) provides for granting stock options and restricted stock awards to employees, directors, contractors and consultants of the Company. A total of 3,182,335 shares of common stock are authorized to be issued pursuant to the Plan. As of September 30, 2020, there were 2,776,391 shares available for future grants under the Plan. Determining the appropriate fair value of share-based awards requires the input of subjective assumptions, including the fair value of the Company’s common stock, and, for stock options, the expected life of the option, and expected stock price volatility. The assumptions used in calculating the fair value of share-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different assumptions, share-based compensation expense could be materially different for future awards.

Restricted Stock Awards

The Company recognized stock compensation expense for restricted stock awards of $97,219, net of forfeitures of $8,968, and $2,942, net of forfeitures of $0, for the three months ended September 30, 2020 and September 30, 2019, respectively, and $298,239, net of forfeitures of $20,323, and $1,546,247, net of forfeitures of $0, for the nine months ended September 30, 2020 and September 30, 2019, respectively, which is included in general and administrative expense. At September 30, 2020, the total unrecognized compensation expense related to unvested restricted stock awards granted was $814,461, which the Company expects to recognize over a period of approximately 2.07 years. No shares were granted during the nine months ended September 30, 2020.

Stock Option Awards

For the three months ended September 30, 2020 and September 30, 2019, the Company recognized $0 and $21,033, respectively, and for the nine months ended September 30, 2020 and September 30, 2019, the Company recognized $24,194 and $32,852, respectively, of share-based compensation expense in general and administrative expense. At September 30, 2020, the total unrecognized compensation related to unvested stock option awards granted was $0.  No stock option awards were granted during the nine months ended September 30, 2020.