Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.5.0.2
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
9. 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 Company subsequently amended the plan to increase the number of authorized shares of common stock under the plan to 1,800,000 shares, which the Company’s stockholders approved on June 3, 2015.
  
Stock Options

The following table summarizes the Company’s stock option activity for the six months ended June 30, 2016:
 
 
  
Number of
Options
    
Weighted
Average
 Exercise
Price
    
Weighted
Average
Remaining
Contractual
Life
(in Years)
    
Aggregate
Intrinsic
 Value
  
Outstanding - December 31, 2015
    
157,190
    
$
3.75
      
8.0
    
$
-
  
Granted
    
-
      
-
                  
Exercised
    
-
      
-
                  
Forfeited/Canceled/Expired
    
(12,333
)
    
(3.45
)
                
Outstanding – June 30, 2016
    
144,857
    
$
3.78
      
7.9
    
$
-
  
 
                                
Exercisable – June 30, 2016
    
108,522
      
3.89
      
8.0
    
$
-
  
 
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, 2015
    
109,522
    
$
1.72
  
Granted
    
-
      
-
  
Vested
    
(70,187
)
    
(1.75
)
Forfeited/Canceled/Expired
    
(3,000
)
    
(1.65
)
Unvested – June 30, 2016
    
36,335
    
$
1.65
  

The Company recorded non-cash compensation expense of approximately $15,000 and $31,000 for the three months ended June 30, 2016 and 2015, respectively, and approximately $44,000 and $43,000 for the six months ended June 30, 2016 and 2015, respectively, pertaining to stock options.

Total unrecognized compensation expense related to unvested stock options at June 30, 2016 amounts to approximately $45,000 and is expected to be recognized over a remaining weighted average period of 0.75 years.
 
Warrants

The following table summarizes the Company’s warrant activity for the six months ended June 30, 2016:
 
 
  
Number of
Warrants
    
Weighted
Average
 Exercise
Price
    
Weighted
Average
Remaining
Contractual
Life
(in Years)
    
Aggregate
Intrinsic
 Value
  
Outstanding - December 31, 2015
    
362,500
    
$
8.34
      
3.5
    
$
-
  
Granted
    
3,750,000
      
0.85
                  
Exercised
    
-
      
-
                  
Forfeited/Canceled/Expired
    
-
      
-
                  
Outstanding – June 30, 2016
    
4,112,500
    
$
1.51
      
4.8
    
$
412,500
  
 
                                
Exercisable – June 30, 2016
    
1,912,902
      
1.78
      
4.6
    
$
232,560
  
 
As discussed in Note 6, the Company granted warrants to purchase 3,750,000 shares of common stock during the three months ended June 30, 2016. The fair value of the warrants issued of $783,458 has been recorded as a direct deduction from the carrying amount of Master Credit Facility.

A summary of the changes in the Company’s unvested warrants is as follows: 
 
  
Number of
Warrants
    
Weighted
Average
Grant
Date Fair
Value
  
Unvested - December 31, 2015
    
-
    
$
-
  
Granted
    
3,750,000
      
0.18
  
Vested
    
(3,750,000
)
    
(0.18
)
Forfeited/Canceled/Expired
    
-
      
-
  
Unvested – June 30, 2016
    
-
    
$
-
  

No compensation cost was recognized for the three and six months ended June 30, 2016 and 2015 pertaining to warrants.

Restricted Stock

As of June 30, 2016 and December 31, 2015, there were 44,445 shares of unvested restricted stock outstanding.

The Company recorded non-cash compensation expense of approximately $28,000 and $83,000 for the three months ended June 30, 2016 and 2015, respectively, and approximately $55,000 and $194,000 for the six months ended June 30, 2016 and 2015, respectively, pertaining to restricted stock. 
   
Total unrecognized compensation expense related to unvested restricted stock at June 30, 2016 amounts to approximately $157,000 and is expected to be recognized over a weighted average period of 1.4 years.