Stock-Based Compensation Arrangements

3 Months Ended

Mar. 31, 2015

Stock-Based Compensation Arrangements [Abstract]

Stock-Based Compensation Arrangements

Note 8—Stock-Based Compensation Arrangements

Total stock-based compensation is as follows:

	Three Months Ended March 31,
	2015		2014
Stock option grants beginning of period	$	98,440	$	119,533
Stock-based arrangements during the period:
Stock option grants		47,048		1,039
Restricted stock issued:
Employee stock purchase plan		822		1,648
	$	146,310	$	122,220

Stock option and restricted stock grants

The following table details stock option activity:

	Three Months
	Ended March 31, 2015
			Weighted Average
	Shares		Exercise Price
Outstanding, beginning of period		4,523,900	$	0.39
Stock options granted		3,529,000		0.26
Outstanding, end of period		8,052,900	$	0.33
Exercisable, end of period		2,124,148	$	0.39

At March 31, 2015, there was approximately $1.4 million of total unrecognized compensation related to non-vested share-based compensation arrangements granted under the Company’s stock plans.

Restricted Stock Awards

At March 31, 2015 and 2014, there were no outstanding restricted stock awards.

Stock Option Grants

On August 9, 2013, the Company’s shareholders’ approved the 2013 Employee, Director and Consultant Equity Incentive Plan (the “2013 Plan”). The 2013 Plan allows for the issuance of up to 8,860,000 additional shares of our common stock pursuant to awards granted under the 2013 Plan. Additionally, the 2013 plan allows for the issuance of up to a maximum of 2,435,500 additional shares of our common stock, pursuant to the cancellation, forfeiture, or expiry, of awards granted under the 2004 Plan and terminated on or after the 2013 plan approval on August 9, 2013. During the three month period ended March 31, 2015, the Company granted 3,529,000 stock options under the 2013 Plan. At March 31, 2015, the Company had an aggregate of 2,636,100 shares of common stock available for grant under the 2013 Plan.

It is the Company’s policy to grant stock options with an exercise price equal to the fair market value of the Company’s common stock at the grant date, and stock options to employees generally vest over four years based upon continuous service. Historically, the majority of the Company’s stock options have been granted in connection with the employee’s start date with the Company. In addition, the Company may grant stock options in recognition of promotion and/or performance.

Employee Stock Purchase Plan

Purchases made under the Company’s Employee Stock Purchase Plan are deemed to be compensatory because employees may purchase stock at a price equal to 85% of the fair market value of the Company’s common stock on either the first day or the last day of a calendar quarter, whichever is lower. During the three months ended March 31, 2015 and 2014, employees purchased 54,820 and 32,967 shares, respectively, of common stock at a weighted-average purchase price of $0.10 and $0.30, respectively, while the weighted-average market value was $0.12 and $0.35 per share, respectively, resulting in compensation expense of $822 and $1,648, respectively.