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Equity Instruments and Stock Based Compensation
 12 Months Ended
Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
NOTE 13 : Equity Instruments and Stock Based Compensation
 
Compensation expense included in the Company’s Consolidated Statements of Income for all stock-based compensation arrangements was as follows:
 
 
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
 
 
Cost of products and services sold
 
$
-
 
$
38
 
$
20
 
Research and development expenses
 
 
1,587
 
 
1,027
 
 
779
 
Selling, general and administrative expenses
 
 
6,154
 
 
1,798
 
 
1,230
 
Total stock-based compensation expense
 
$
7,741
 
$
2,863
 
$
2,029
 
 
As of December 31, 2015, the Company expects $13,297 of unrecognized expense related to granted, but nonvested stock-based compensation arrangements to be incurred in future periods. This expense is expected to be recognized over a weighted average period of 1.7 years.
 
The Company recognized a tax benefit related to stock-based compensation of $1,767 for the year ended December 31, 2015.
 
Upon exercise of stock options or warrants, or upon the issuance of free share awards, the Company issues new shares.
 
Determining the Fair Value of Stock Options and Warrants
 
The Company measures the total fair value of stock options and warrants on the grant date using the Black-Scholes option-pricing model and recognizes each grant's fair value as compensation cost over the period that the option or warrant vests. Options are granted to employees of the Company and generally become exercisable within four years following the grant date and expire ten years after the grant date. Warrants are typically issued to the Company’s Board of Directors as compensation for services rendered and generally become exercisable within one year following the grant date, and expire four years after the grant date.
 
The weighted-average assumptions under the Black-Scholes option-pricing model for stock option and warrant grants are as follows:  
 
 
 
2015
 
2014
 
2013
 
Stock Option grants:
 
 
 
 
 
 
 
Expected term (years)
 
6.25
 
6.25
 
6.25
 
Expected volatility
 
58.59
%
59.00
%
58.15
%
Risk-free interest rate
 
1.89
%
1.79
%
1.66
%
Expected dividend yield
 
-
 
-
 
-
 
 
 
 
 
 
 
 
 
Warrant grants:
 
 
 
 
 
 
 
Expected term (years)
 
2.50
 
2.50
 
2.50
 
Expected volatility
 
55.00
%
58.00
%
54.00
%
Risk-free interest rate
 
0.89
%
0.75
%
0.47
%
Expected dividend yield
 
-
 
-
 
-
 
 
Expected term: The expected term of the options or warrants represents the period of time between the grant date and the time the options or warrants are either exercised or forfeited, including an estimate of future forfeitures for outstanding options or warrants. Given the limited historical data and the grant of stock options and warrants to a limited population, the simplified method has been used to calculate the expected life.
 
Expected volatility: The expected volatility is calculated based on an average of the historical volatility of the Company's stock price for a period approximating the expected term.
 
Risk-free interest rate: The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and a maturity that approximates the expected term.
 
Expected dividend yield: The expected dividend yield is based on the Company's authorized periodic dividend and the Company's expectation for dividend yields over the expected term. The Company has not distributed any dividends since its inception, and has no plan to distribute dividends in the foreseeable future.
 
Stock Options
 
A summary of the combined stock option activity and other data for the Company's stock option plans for the year ended December 31, 2015 is as follows:
 
 
 
 
 
Wtd. Avg.
 
Wtd. Avg.
 
 
 
 
 
Number of
 
Exercise
 
Remaining
 
Aggregate
 
 
 
Stock
 
Price per
 
Contractual
 
Intrinsic
 
 
 
Options
 
Share
 
Life
 
Value
 
 
 
 
 
 
 
 
 
 
 
Stock options outstanding, January 1, 2015
 
2,498
 
$
11.45
 
 
 
 
 
 
Granted
 
934
 
 
16.71
 
 
 
 
 
 
Exercised
 
(708)
 
 
8.75
 
 
 
 
 
 
Forfeited
 
(398)
 
 
14.59
 
 
 
 
 
 
Stock options outstanding, December 31, 2015
 
2,326
 
$
13.84
 
8.26 years
 
$
6,426
 
Stock options exercisable, December 31, 2015
 
798
 
$
10.80
 
6.12 years
 
$
4,880
 
 
The aggregate intrinsic value of options exercised during the years ended December 31, 2015, 2014 and 2013 was $10,063 and $3,789, respectively. There were no options exercised in 2013.
 
The weighted average grant date fair value of options granted during the years ended December 31, 2015, 2014 and 2013 was $9.38, $9.19 and $3.36 per share, respectively.
 
At December 31, 2015, there were 97 shares authorized for stock option grants in subsequent periods. 
 
Warrants
 
A summary of the combined warrant activity and other data for the year ended December 31, 2015 is as follows:  
 
 
 
 
 
Wtd. Avg.
 
Wtd. Avg.
 
 
 
 
 
 
 
Exercise
 
Remaining
 
Aggregate
 
 
 
Number of
 
Price per
 
Contractual
 
Intrinsic
 
 
 
Warrants
 
Share
 
Life
 
Value
 
 
 
 
 
 
 
 
 
 
 
Warrants outstanding, January 1, 2015
 
553
 
$
10.47
 
 
 
 
 
 
Granted
 
305
 
 
21.67
 
 
 
 
 
 
Exercised
 
(190)
 
 
5.57
 
 
 
 
 
 
Forfeited
 
-
 
 
-
 
 
 
 
 
 
Warrants outstanding, December 31, 2015
 
668
 
$
16.97
 
2.90 years
 
$
687
 
Warrants exercisable, December 31, 2015
 
363
 
$
13.04
 
2.41 years
 
$
687
 
 
The aggregate intrinsic value of warrants exercised during the years ended December 31, 2015, 2014 and 2013 was $2,698, $3,107 and $2, respectively.
 
The weighted average grant date fair value of warrants granted during the years ended December 31, 2015, 2014 and 2013 was $5.92, $3.90 and $1.50 per share, respectively.
 
At December 31, 2015, an additional 3,300 warrants were outstanding and exercisable relative to consideration paid for the Company’s acquisition of Éclat Pharmaceuticals, LLC on March 13, 2012. These warrants are not considered stock-based compensation and are therefore excluded from the above tables, and instead are addressed within Note 8 - Long-Term Contingent Consideration Payable.
 
At December 31, 2015, there were 45 shares authorized for warrant grants in subsequent periods.
 
Free Share Awards
 
Free share awards represent Company shares issued free of charge to employees of the Company as compensation for services rendered. The Company measures the total fair value of free share awards on the grant date using the Company's stock price at the time of the grant. Free share awards generally cliff vest at the end of a four year vesting period, and are expensed over this vesting period.
 
A summary of the Company's free share awards as of December 31, 2015, and changes during the year then ended, is reflected in the table below.
 
 
 
Number of
 
Wtd. Avg.
 
 
 
Free Share
 
Grant Date
 
 
 
Awards
 
Fair Value
 
 
 
 
 
 
 
Nonvested free share awards outstanding, January 1, 2015
 
402
 
$
11.29
 
Granted
 
-
 
 
-
 
Vested
 
(151)
 
 
7.36
 
Forfeited
 
(25)
 
 
10.95
 
Nonvested free shares awards outstanding, December 31, 2015
 
226
 
$
13.95
 
 
The weighted average grant date fair value of free share awards granted during the years ended December 31, 2014 and 2013 was $16.30 and $7.36, respectively. There were no free share awards granted in 2015.
 
At December 31, 2015, there were 250 shares authorized for free share award grants in subsequent periods.