5. STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

Stock Incentive Plans

Options and Warrants

We have one long-term incentive plan which we refer to as the 2006 Plan. As of March 31, 2015, we have reserved for issuance under the 2006 Plan 11,000,000 shares of common stock. Certain options granted under the 2006 Plan to employees are intended to qualify as incentive stock options under existing tax regulations. In addition, we may issue non-qualified stock options under the 2006 Plan from time to time to non-employees, in connection with acquisitions and for other purposes and we may also issue restricted stock under the 2006 Plan. Stock options and warrants generally vest over two to five years and expire five to ten years from date of grant.

As of March 31, 2015, 1,699,176, or approximately 97.5%, of the 1,742,509 outstanding stock options granted under our 2006 Plan are fully vested.  During the three months ended March 31, 2015, we did not grant options or warrants under our 2006 Plan.

The following summarizes all of our option and warrant transactions during the three months ended March 31, 2015:

				Weighted Average		Weighted Average Remaining
				Exercise price		Contractual		Aggregate
Outstanding Options and Warrants				Per Common		Life		Intrinsic
Under the 2006 Plan	Shares			Share		(in years)		Value
Balance, December 31, 2014		2,092,509		$	3.58
Granted		–			–
Exercised		(325,000	)		2.69
Canceled, forfeited or expired		(25,000	)		2.22
Balance, March 31, 2015		1,742,509			3.76		1.03	$	8,230,904
Exercisable at March 31, 2015		1,699,176			3.80		0.97		7,955,304

Aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between our closing stock price on March 31, 2015 and the exercise price, multiplied by the number of in-the-money options or warrants, as applicable) that would have been received by the holder had all holders exercised their options or warrants, as applicable, on March 31, 2015. Total intrinsic value of options and warrants exercised during the three months ended March 31, 2015 and 2014 was approximately $1.9 million and $16,000, respectively. As of March 31, 2015, total unrecognized stock-based compensation expense related to non-vested employee awards was $30,000, which is expected to be recognized over a weighted average period of approximately 1.6 years.

Restricted Stock Awards (“RSA’s”)

The 2006 Plan permits the award of restricted stock. As of March 31, 2015, we have issued a total of 3,441,208 RSA’s of which 881,194 were unvested at March 31, 2015.

The following summarizes all unvested RSA’s activities during the three months ended March 31, 2015:

				Weighted- Average
				Remaining		Weighted-
				Contractual		Average
	Shares			Term (Years)		Fair Value
RSA's outstanding at December 31, 2014		942,023				$	1.96
Changes during the period
Granted		724,423				$	8.66
Vested		(785,253	)			$	4.53
RSA's outstanding at March 31, 2015		881,194			1.21	$	5.17

We determine the fair value of all RSA’s based of the closing price of our common stock on award date.

In sum, of the 11,000,000 shares of common stock reserved for issuance under the 2006 Plan, at March 31, 2015, we had 7,944,958 options, shares of restricted stock and other bonus awards issued and 3,055,042 shares of common stock available for future awards.