Stock-based Compensation

12 Months Ended

Dec. 31, 2015

Note 11. Stock-based Compensation

The Company has a stock-based compensation plan available to grant stock options and RSUs to the Company’s directors, employees and consultants. Under the 2012 Employee, Director and Consultant Equity Incentive Plan (the “Plan”), a maximum of 1,560,000 shares of common stock may be awarded (after giving effect to the one-for-ten reverse stock split). In 2015, the Company amended its Plan, so that a maximum of shares of common stock that may be awarded was increased to 2,100,000. As of December 31, 2015, 933,460 shares were available for future grants under the Plan. Total stock-based compensation expense for the years ended December 31, 2015 and 2014 was $5,064 and $10,967, respectively.

The following table illustrates the stock options granted during the year ended December 31, 2015. There were no RSUs granted during the year ended December 31, 2015.

Title

Grant date

No. of
options

Exercise price

Fair market value
at grant date

Vesting terms

Assumptions used in Black-Scholes
Option pricing model

Directors and employees

January 2015

115,000

$5.10 - $5.90

$3.30 - $3.80

Over 1 year for directors; over 3 years for employees

Volatility: 74.9 % - 77.1%
Risk free interest rate: 1.27% - 1.51%
Expected term, in years: 5.31 - 5.81
Dividend yield: 0.00%

Certain options granted to officers, directors and certain key employees are subject to acceleration of vesting of 75% - 100% (according to the agreement signed with each grantee), upon a change of control event.

The following tables summarize information about stock options and RSU activity during the year ended December 31, 2015:

	RSUs				Options
	No. of RSUs		Weighted average grant date fair value		No. of options		Weighted average exercise price		Exercise price range		Weighted average grant date fair value
Outstanding at December 31, 2014		119,636	$	36.40		805,235	$	33.60		$9.60 - $55.00	$	22.40
Granted		—		—		115,000	$	5.45		$5.10 - $5.90	$	3.52
Vested/Exercised		(30,991)	$	36.51		—		—		—		—
Forfeited		(35,365)	$	36.31		(48,751)	$	19.41		$5.10 - $37.60	$	11.13
Expired		—		—		—		—		—		—
Outstanding at December 31, 2015		53,280	$	36.31		871,484	$	30.65		$5.10 - $55.00	$	20.49
Exercisable at December 31, 2015		—		—		815,361	$	31.49		$5.10 - $55.00

	Non-vested stock options:				Non-vested RSU:
	No. of options		Weighted average grant date fair value		No. of RSUs		Weighted average grant date fair value
Balance at January 1, 2015		187,965	$	22.10		119,636	$	36.40
Granted		115,000	$	3.52		—	$	—
Vested		(214,631)	$	17.18		(30,991)	$	36.51
Forfeited		(32,211)	$	8.48		(35,365)	$	36.31
Balance at December 31, 2015		56,123	$	10.66		53,280	$	36.31

The following table summarizes information about employee and non-employee stock options outstanding as of December 31, 2015:

Exercise price range		No. options outstanding		No. options exercisable		Weighted average remaining contractual life (years)
$	0.01-10.00		98,618		70,285		4.18
$	10.00-20.00		84,566		79,567		4.88
$	20.00-30.00		46,000		41,000		7.50
$	30.00-40.00		518,550		514,926		7.20
$	40.00-50.00		102,500		88,333		8.15
$	50.00-60.00		21,250		21,250		1.09
			871,484		815,361

As of December 31, 2015 and 2014, the total aggregate intrinsic values of options outstanding and options exercisable were zero since these instruments were “out-of-the-money” as of these dates. The total aggregate intrinsic value of options exercised during the year ended December 31, 2014 was $2,363. There were no options exercised during the year ended December 31, 2015.

The total fair value of stock options that vested in the years ended December 31, 2015 and 2014 was $3,687 and $7,987, respectively. As of December 31, 2015, there were approximately $1,420 of total unrecognized stock-based payment cost related to non-vested options, shares and RSUs, granted under the incentive stock option plans. Overall, the cost is expected to be recognized over a weighted average of 1.05 years.

The Company did not recognize tax benefits related to its stock-based compensation as there is a full valuation allowance recorded.