Note 12—Stock-Based Compensation

In March 2020 the Company adopted the 2020 Inducement Equity Incentive Plan (the “2020 Plan”) with the purpose of attracting, retaining and incentivizing employees in furtherance of the Company’s success. The 2020 Plan was adopted without stockholder approval pursuant to Rule 303A.08 of the New York Stock Exchange rules. In accordance with New York Stock Exchange rules, this plan is used to offer equity awards as material inducements for new employees to join Ra Medical. On adoption, 800,000 shares of common stock were reserved solely for the granting of inducement stock options, restricted stock, restricted stock units and other awards. The 2020 Plan provides for the granting of stock options with exercise prices equal to the fair market value of our common stock on the date of grant. During the six months ended June 30, 2020 there were 450,000 stock options granted with a weighted average exercise price of $1.02 and 125,000 restricted stock awards granted with a grant date fair value of $0.1 million under the 2020 Plan. There are 28,125 exercisable options in the 2020 Plan at June 30, 2020.

A summary of the activity and related information of the stock options issued under the 2018 Equity Incentive Plan and the 2018 Stock Compensation Plan is presented below:

A summary of the activity and related information of the restricted stock units issued under the 2018 Plan is presented below:

Stock-based compensation expense recorded in operating expenses was as follows (in thousands):

Stock-based compensation amounts of $0.1 million and $0.5 million were capitalized to inventory and property and equipment during the three months ended June 30, 2020 and 2019, respectively. Stock-based compensation of $0.2 million and $1.0 million were capitalized to inventory and property and equipment during the six months ended June 30, 2020 and 2019, respectively.   

Unrecognized compensation expense for stock options issued as of June 30, 2020 was $3.5 million and is expected to be recognized over a weighted-average period of 1.4 years. Unrecognized compensation expense for the restricted stock units and restricted stock awards as of June 30, 2020 was $0.8 million and is expected to be recognized over a weighted-average period of 2.1 years.