Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2020
Equity [Abstract]  
On June 21, 2017, at the annual meeting of stockholders, the Company's shareholders approved (i) an increase of 1,000,000 shares to the Finjan Holdings, Inc. 2014 Plan and (ii) the addition of an “evergreen” feature which provides for the annual replenishment of shares to the Restated 2014 Plan share reserve without stockholder approval, which represented an additional 1,385,366 shares as of January 1, 2018, 1,378,432 shares as of January 1, 2019 and 1,382,546 shares as of January 1, 2020 (equal to 5.0% of our outstanding shares of Common Stock as of the end of our immediately preceding fiscal year). As of March 31, 2020, the Company has 4,133,416 shares available for issuance under the 2014 Plan.

During the three months ended March 31, 2020 and 2019, the Company incurred $0.3 million and $0.2 million, respectively, of stock-based compensation in the condensed consolidated statements of operations. All stock-based compensation expenses were related to selling, general and administration.
Stock Options

The following table is a summary of stock option activity during the three months ended March 31, 2020:
Number of
Options Outstanding
Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands)
Outstanding 2013 & 2014 Plans – December 31, 2019 2,356,197    $ 1.89    5.93 $ 628   
Options granted —    —    —    —   
Options exercised (17,184)   1.20    6.09 —   
Options forfeited —    —    —    —   
Outstanding – March 31, 2020 2,339,013    $ 1.89    5.68 $ —   
Exercisable – March 31, 2020 1,906,107    $ 1.78    5.19 $ —   

The Company estimates the fair values of stock options using the Black-Scholes option-pricing model. The assumptions used in the Black-Scholes option-pricing model and the weighted-average grant date fair value of the option awards for the periods presented were as follows:
  Three Months ended March 31
2020 2019
Volatility NA 104.99%
Expected term (in years) NA 6
Risk-free rate NA 2.24%
Expected dividend yield NA
Weighted-average grant date fair value per option NA $ 2.24

The risk-free interest rate is the United States Treasury rate for the day of the grant having a term equal to the life of the equity instrument. The volatility is a measure of the amount by which the Company’s share price has fluctuated or is expected to fluctuate; the Company used its common stock volatility along with the average of historic volatilities of comparative companies. The dividend yield is zero as the Company has not made any dividend payment and has no plans to pay dividends in the foreseeable future. The Company determines the expected term of its stock option awards by using the simplified method, which assumes each vesting tranche of the award has a term equal to average of the contractual term and the vesting period.

Restricted Stock Units

The following table is a summary of restricted stock units award activity during the three months ended March 31, 2020:

Number of Shares Weighted Average Grant Date Fair Value
Non-vested at beginning of period 486,135    2.53   
Shares granted 70,000    2.01   
Shares vested (17,444)   1.69   
Non-vested at end of period 538,691    $ 2.18   

The aggregate intrinsic value of the unvested RSU's was $0.5 million as of March 31, 2020.

As of March 31, 2020, total compensation cost not yet recognized related to unvested restricted stock awards and stock options was approximately $1.5 million, which is expected to be recognized over a weighted-average period of 1.9 years.