Stock-based Compensation

9 Months Ended

Sep. 30, 2016

Share-based Compensation [Abstract]

Stock-based Compensation

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 number of shares of common stock that may be awarded was increased to 2,100,000 (the “Amended Plan”). As of September 30, 2016, 302,510 shares were available for future grants under the Plan. Total stock-based compensation expense for the three-month periods ended September 30, 2016 and 2015 was $485 and $1,066, respectively. Total stock-based compensation expense for the nine-month periods ended September 30, 2016 and 2015 was $1,447 and $4,191, respectively.

 

The following table illustrates the stock options granted during the nine-month period ended September 30, 2016.

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, management and employees	April – June 2016		730,000	$1.55 - $1.92	$0.82 - $1.04	Over 1 year for directors; Over 3 years for management and employees	Volatility: 58.92% - 59.75% Risk free interest rate: 1.24% - 1.56% Expected term, in years: 5.31 - 5.81 Dividend yield: 0.00%

In addition to the stock options listed in the table above, on April 4, 2016, the Company's Board of Directors authorized another 2,260,000 stock options to be granted to management and employees. This amount of stock options granted was greater than the amount available under the Amended Plan and, as such, the stock options were not issued to management and employees as they require stockholder approval. These stock options are expected to be granted when stockholders’ approval is received in the fourth quarter of 2016.

The following table illustrates the RSUs granted during the nine-month period ended September 30, 2016.

Title	Grant date	No. of RSUs		Exercise price		Fair market value at grant date		Vesting term
Consultant	March 9, 2016		10,000		—	$	2.13	0.33 years

The activity related to stock options and RSUs during the nine-month period ended September 30, 2016 consisted of the following:

	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 January 1, 2016		53,280	$	36.31		871,484	$	30.65	$	5.10 - 55.00	$	20.49
Granted		10,000	$	2.13		730,000	$	1.66	$	1.55 - 1.92	$	0.89
Vested/Exercised		(63,280)	$	30.91		—		—		—		—
Forfeited		—		—		(100,050)	$	27.88	$	5.90 – 41.00	$	17.04
Expired		—		—		(9,000)	$	55.00	$	55.00	$	26.20
Outstanding at September 30, 2016		—	$	—		1,492,434	$	16.51	$	1.55 – 55.00	$	11.08
Exercisable at September 30, 2016		—		—		995,767	$	23.65	$	1.55 – 55.00

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