Stock-Based Compensation

3 Months Ended

Mar. 31, 2017

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

Stock-Based Compensation

Note 10. Stock–based compensation

Issuance of restricted shares – directors, officers and employees

	Number of shares		Weighted average grant date fair value
Non–vested at December 31, 2016		1,000,000	$	2.31
Granted		550,000		0.81
Vested		–		–
Forfeited		–		–
Non–vested at March 31, 2017		1,550,000	$	1.78

For the three months ended March 31, 2017 and 2016, the Company has recorded $338 and $nil, respectively, in employee and director stock–based compensation expense, which is a component of selling, general and administrative expense in the condensed consolidated statement of operations.

In the three months ended March 31, 2017 and 2016, the Company did not allocate any stock–based compensation expense to non–controlling interest.

Unrecognized compensation cost

As of March 31, 2017, unrecognized compensation costs related to non–vested stock–based compensation arrangements was $1,728 (2016: $nil), and is expected to be recognized over a weighted average period of 1.75 years (2016: 0 years).

Stock options

The following is a summary of the Company’s option activity:

	Options		Weighted Average Exercise Price
Outstanding – January 1, 2017		6,000,000	$	0.71
Exercisable – January 1, 2017		500,000	$	0.71
Granted		–		–
Exercised		–		–
Forfeited/Cancelled		–		–
Outstanding – March 31, 2017		6,000,000	$	0.71
Exercisable – March 31, 2017		1,250,000	$	0.71

Exercise price		Number outstanding		Weighted average remaining contractual life (in years)	Weighted average exercise price		Number exercisable		Weighted average exercise price
$	0.71		6,000,000	4.64 years	$	0.71		1,250,000	$	0.71

For the three months ended March 31, 2017 and 2016, the Company has recorded $962 and $nil, respectively, in employee and director stock–based compensation expense, which is a component of selling, general and administrative expense in the condensed consolidated statement of operations.

As of March 31, 2017, unrecognized compensation costs related to non–vested stock–based compensation arrangements was $6,095 (2016: $nil), and is expected to be recognized over a weighted average period of 1.6 years (2016: 0 years).

At March 31, 2017, the total intrinsic value of options outstanding and exercisable was $1,360 and $0, respectively.

Warrants

During the three months ended March 31, 2017 the Company issued a total of 5,275,000 stock purchase warrants in connection with the Company’s March 2017 Securities Purchase Agreement and sales of Common stock (Notes 8 and 9).

The following table summarizes information about shares issuable under warrants outstanding at March 31, 2017:

	Warrant shares outstanding		Weighted average exercise price
At January 1, 2017		100,000	$	3.75
Issued		5,275,000		0.75
Exercised		–		–
Expired		–		–
At March 31, 2017		5,375,000	$	0.82

As of March 31, 2017, the Company had 5,375,000 shares issuable under warrants outstanding at a weighted average exercise price of $0.82 and an intrinsic value of $797. All issued warrants are exercisable and expire through 2024.