Stock Options and Grants

6 Months Ended

Jun. 30, 2018

8.	Stock Options and Grants

A summary of stock option activity as of June 30, 2018 and changes during the six months then ended are presented below. The table includes options granted to employees and directors of the Company and does not include 50,000 options granted to a consultant during 2017:

	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, 2017		888,392	$	1.23	$	3.86		9.15	$	1,881,869
Granted		250,000		1.28		4.61		-		-
Exercised		-		-		-		-		-
Cancelled		-		-		-		-		-
Outstanding – June 30, 2018		1,138,392	$	1.24	$	4.03		8.90	$	1,439,731

Exercisable – December 31, 2017		738,608	$	1.22	$	4.04		9.19	$	1,435,515
Exercisable – June 30, 2018		838,549	$	1.23	$	4.02		8.75	$	1,095,371

For the three months ended June 30, 2018 and 2017, the Company recognized stock-based compensation expense of $85,325 and $55,000, respectively. For the six months ended June 30, 2018 and 2017, the Company recognized stock-based compensation expense of $165,314 and $209,383, respectively. This expense is included in payroll and related expenses in the accompanying condensed consolidated statements of operations.

As of June 30, 2018, the Company had $363,259 of total unrecognized compensation costs related to non-vested stock options, which will be expensed over a weighted average period of 1.44 years. The intrinsic value is calculated as the difference between the fair value of the stock price at June 30, 2018 and the exercise price of each of the outstanding stock options. The fair value of the stock price at June 30, 2018 was $5.20 per share, based on the closing price of the Company’s stock as of June 29, 2018.