Ideal Power Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Equity Incentive Plan

Equity Incentive Plan

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Note 10 — Equity Incentive Plan

On May 17, 2013, the Company adopted the 2013 Equity Incentive Plan (the “Plan”) and reserved shares of common stock for issuance under the Plan. The Plan is administered by the Compensation Committee of the Company’s Board of Directors. At September 30, 2018, 430,963 shares of common stock were available for issuance under the Plan.

During the nine months ended September 30, 2018, the Company granted 122,039 stock options to Board members and 300,000 stock options to an executive under the Plan. The estimated fair value of these stock options, calculated using the Black-Scholes option valuation model, was $330,713, of which $300,713 was recognized during the nine months ended September 30, 2018.

During the nine months ended September 30, 2018, the Company also granted 117,500 restricted stock units and 12,000 performance stock units to employees,

of which 6,000 performance stock units were forfeited during the three months ended September 30, 2018 as the related performance conditions were not achieved.

The estimated fair value of these awards, based on the Company’s stock price on the date of grant and net of subsequent forfeitures, was $150,730, of which $37,842 was recognized during the nine months ended September 30, 2018.

A summary of the Company’s stock option activity and related information is as follows:

	Stock Options			Weighted Average Exercise Price		Weighted Average Remaining Life (in years)
Outstanding at December 31, 2017		1,232,236		$	6.44		6.8
Granted		422,039		$	1.31
Forfeited/Expired/Exchanged		(124,728	)	$	5.23
Outstanding at September 30, 2018		1,529,547		$	5.12		7.1
Exercisable at September 30, 2018		1,397,562		$	5.22		7.0

At September 30, 2018, there was $482,136 of unrecognized compensation cost related to non-vested equity awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 0.7 years.