RESTRICTED STOCK

6 Months Ended

Jun. 30, 2015

Restricted Stock

RESTRICTED STOCK

(10)            RESTRICTED STOCK

For restricted stock issued and outstanding during the three month periods ended June 30, 2015 and 2014, the Company incurred non-cash compensation expense of approximately $26,000 and $108,000, respectively, each net of estimated forfeitures.

During the three months ended June 30, 2015, the Company did not grant restricted shares of Common Stock to any officers, employees, directors and consultants of the Company.

A summary of non-vested restricted stock activity as of and for the six months ended June 30, 2015 is as follows:

Restricted Stock	Shares			Weighted- Average Grant-Date Fair Value
Non-vested shares at January 1, 2015		47,958		$	9.74
Vested		(6,338	)	$	3.68
Forfeited		(2,330	)	$	6.05
Non-vested shares at June 30, 2015		39,290		$	12.12

Among the 39,290 shares of non-vested restricted stock, the various vesting criteria include the following:

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

· 21,480 shares of restricted stock vest over 4 years, at each of the anniversary dates of the grants; and

· 3,625 shares of restricted stock vest over 1 year, at each of the anniversary dates of the grants.

As of June 30, 2015, there was approximately $213,000 of total unrecognized compensation expense related to non-vested share-based restricted stock arrangements granted pursuant to the Company’s equity compensation plans that vest over time in the foreseeable future. As of June 30, 2015, the Company cannot estimate the timing of completion of 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.