Equity

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Equity

NOTE F — EQUITY

Stock Options

A summary of the stock option activity under the Company’s plans for the three months ended March 31, 2015 is as follows:

			Weighted
	Number		average
	of		exercise
	shares		price
Options outstanding at December 31, 2014		4,012,096	$	2.04
Options granted		51,000		4.10
Less:
Options exercised		67,875		1.48
Options canceled or expired		—		—
Options outstanding at March 31, 2015		3,995,221	$	2.08

As of March 31, 2015, options to purchase 2,742,996 shares were vested and exercisable at a weighted average price of $1.44.

As of March 31, 2015, there was approximately $0.9 million of total unrecognized share-based compensation expense related to stock options that will be recognized over a weighted-average period of 1.6 years.

Share-based compensation expense recognized for stock options and restricted stock and included in the condensed consolidated statements of income was allocated as follows:

	Three months ended March 31,
(In thousands)	2015		2014
Research and development expense	$	55	$	42
General, and administrative expense		287		47
Total share-based compensation expense	$	342	$	89

Common Stock Warrants

There has been no activity during the three months ended March 31, 2015 for warrants and as of March 31, 2015, warrants to purchase 650,000 shares of our common stock were outstanding with a weighted average exercise price of $1.48 per share. As of March 31, 2015 there are 530,000 warrants exercisable with a weighted average exercise price of $1.49. During the three months ended March 31, 2015 and 2014, we recorded $59,000 and $(5,000) of warrant compensation expense.