RESTRICTED STOCK

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

RESTRICTED STOCK

Share-Based Compensation – Restricted Stock

For restricted stock issued and outstanding during the years ended December 31, 2014 and 2013, the Company incurred non-cash compensation expense of $335,918 and $529,795, respectively, each net of estimated forfeitures.

As of December 31, 2014, the Company had outstanding restricted stock grants of 47,958 shares with a weighted-average grant-date value of $9.74.  A summary of the status of the Company’s non-vested restricted stock grants as of December 31, 2014, and changes during the year ended December 31, 2014 is presented below:

	Shares			Weighted- Average Grant-Date Fair Value
Non-vested shares at January 1, 2014		201,655		$	10.66
Granted		36,936		$	2.85
Vested		(92,178	)	$	6.15
Forfeited		(98,455	)	$	12.40
Non-vested shares at December 31, 2014		47,958		$	9.74

Of the 47,958 shares of non-vested restricted stock, the vesting criteria are as follows:

·   14,185 shares of restricted stock vest upon the FDA approval of our CGM system or the sale of the Company;

·   22,898 shares of restricted stock vest over 4 years, at each of the anniversary dates of the grants; and

·   10,875 shares of restricted stock vest over 1 year, at each of the anniversary dates of the grants.

As of December 31, 2014, there was approximately $121,000 of total unrecognized compensation expense related to non-vested share-based restricted stock arrangements granted under the Company’s equity compensation plans that vest over time in the foreseeable future. As of December 31, 2014, the Company cannot estimate the timing of completion of the performance vesting requirements required by certain of these restricted stock grant arrangements. Compensation expense related to these restricted share grants will be recognized when the Company concludes that achievement of the performance vesting conditions is probable.