8.	Stock Options

A summary of stock option activity as of June 30, 2017 and changes during the three months then ended are presented below:

	Shares		Weighted Average Fair Value Per Share		Weighted Average Exercise Price Per Share		Weighted Average Remaining Terms (in years)		Aggregate Intrinsic Value

Outstanding - December 31, 2016		295,051	$	1.25	$	3.00		9.86		-
Granted		598,552		1.22		4.28		-		-
Exercised		-		-		-		-		-
Cancelled		-		-		-		-		-
Outstanding – June 30, 2017		893,603	$	1.23	$	3.86		9.66	$	978,575

Exercisable – December 31, 2016		128,299	$	1.25	$	3.00		9.86	$	-
Exercisable – June 30, 2017		301,895	$	1.26	$	3.00		9.45	$	513,221

For the six months ended June 30, 2017 and 2016, the Company recognized stock-based compensation expense of $209,383 and $119,146, respectively, which is included in payroll and related expenses in the accompanying condensed consolidated statements of operations. For the three months ended June 30, 2017 and 2016, the Company recognized stock-based compensation expense of $55,000 and $72,248, respectively, which is included in payroll and related expenses in the accompanying condensed consolidated statements of operations.

As of June 30, 2017, there was $700,462 of total unrecognized compensation costs related to non-vested stock options, which will be expensed over a weighted average period of 1.77 years. The intrinsic value is calculated as the difference between the fair value of the stock price at year end and the exercise price of each of the outstanding stock options. The fair value of the stock price at June 30, 2017 was $4.70 per share.

In March 2017, Paul Galvin, the Company’s Chief Executive Officer, and Mahesh Shetty, the Company’s Chief Financial Officer, were granted options to purchase 185,425 and 132,446, shares of the Company’s Common Stock, respectively, which were contingent on the offering price of the June Offering. 185,425 of such options have an exercise price of $5.00 per share and 132,446 have an exercise price of $6.00 per share. These options vest when certain performance conditions are met. The fair value of these options upon issuance amounted to $370,558.