Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.3.0.814
Stock-Based Compensation
9 Months Ended
Sep. 30, 2015
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

12. Stock-Based Compensation

 

Equity Incentive Plans – The Company adopted the 2013 Equity Compensation Plan under which the Company reserved 500,000 shares of common stock for the purpose of providing equity incentives to employees, officers, directors and consultants including options, restricted stock, restricted stock units, stock appreciation rights, other equity awards, annual incentive awards and dividend equivalents. The plan provides for a maximum of 500,000 shares that could be acquired upon the exercise of stock options or the vesting of restricted stock. On June 3, 2015, the Company amended the plan to increase the number of authorized shares of common stock under the plan to 1,800,000 shares.

 

Stock Options

 

The following table summarizes the Company's stock option activity for the nine months ended September 30, 2015:

 

Number of

Options

   

Weighted

Average Exercise

Price

   

Weighted

Average

Remaining

Contractual

Life

(in Years)

   

Aggregate

Intrinsic Value

 

Outstanding - December 31, 2014

  346,000     $ 3.45       9.4     $ 491,320  

Granted

  32,857       4.90                  

Exercised

  -       -                  

Forfeited or Canceled

    (221,000 )     (3.45 )                

Outstanding – September 30, 2015

    157,857     $ 3.75       8.2     $ -  
                                 

Exercisable – September 30, 2015

    47,668       3.45       6.9     $ -  

 

A summary of the changes in the Company's unvested stock options is as follows:

 

Number of

Options

   

Weighted

Average

Grant

Date Fair

Value

 


Unvested - December 31, 2014

  163,000     $ 1.65  

Granted

  32,857       1.87  

Vested

  (47,668 )     (1.65 )

Forfeited or Canceled

    (38,000 )     (1.65 )

Unvested – September 30, 2015

    110,189     $ 1.71  

 

On March 23, 2015, the Company granted 32,857 stock options to certain directors for future services. These options had a grant date fair value of $61,443 using the Black-Sholes option-pricing model with the following assumptions:

 

Risk-free interest rate

    1.41%

Expected dividend yield

    0.00%

Expected volatility

    39.47%

Expected term

    5.5 years

 

The options are exercisable at an exercise price of $4.90 per share over a ten-year term and vest over one year. Compensation expense was $15,360 and $30,720 or the three and nine months ended September 30, 2015, respectively, pertaining to this grant.

 

The Company recorded non-cash compensation expense of $31,298 and $24,597 for the three months ended September 30, 2015 and 2014, respectively, and $74,000 and $50,292 for the nine months ended September 30, 2015 and 2014, respectively, pertaining to stock options.

 

Total unrecognized compensation expense related to unvested stock options at September 30, 2015 amounts to $126,366 and is expected to be recognized over a remaining weighted average period of 1.20 years.

 

Warrants

 

A summary of warrant activity for the nine months ended September 30, 2015 is as follows:

 

Number of

Warrants

   

Weighted

Average Exercise

Price

   

Weighted

Average

Remaining

Contractual Life

(in Years)

   

Aggregate

Intrinsic Value

 

Outstanding - December 31, 2014

  362,500     $ 8.34       4.5     $ 85,000  

Granted

  -       -                  

Exercised

  -       -                  

Forfeited or Canceled

    -       -                  

Outstanding – September 30, 2015

    362,500     $ 8.34       3.8     $ -  
                                 

Exercisable – September 30, 2015

    362,500       8.34       3.8     $ -  

 

All warrants outstanding were fully vested as of September 30, 2015 and December 31, 2014.

 

No compensation cost was recognized during the three and nine months ended September 30, 2015 and 2014 pertaining to warrants.

 

Restricted Stock

 

A summary of restricted stock activity for the nine months ended September 30, 2015 is as follows:

 


 

Number of

Shares

 

Unvested - December 31, 2014

 

 

200,001

 

Granted

 

 

-

 

Vested

 

 

-

 

Forfeited or Canceled

 

 

-

 

Unvested – September 30, 2015

 

 

200,001

 

 

The Company recorded non-cash compensation expense of $83,000 and $0 for the three months ended September 30, 2015 and 2014, respectively, and $276,668 and $0 for the nine months ended September 30, 2015 and 2014, respectively, pertaining to restricted stock.

 

Total unrecognized compensation expense related to unvested restricted stock at September 30, 2015 amounts to $719,338 and is expected to be recognized over a weighted average period of 2.2 years.