Share-based Compensation (Tables)

3 Months Ended

Mar. 31, 2016

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

Summary of stock option activity

The following is a summary of stock option activity for the three month period ended March 31, 2016, and the status of stock options outstanding at March 31, 2016:

	Three Month Period Ended
	March 31, 2016
				Wtd. Avg.
				Exercise
		Options		Price
Outstanding at beginning of year			2,555,263	$	1.80
Granted			265,000	$	1.84
Exercised			(9,985)	$	1.40
Forfeited			(358,708)	$	2.15
Outstanding at March 31, 2016			2,451,570	$	1.75
Stock options exercisable at March 31, 2016			1,185,030	$	1.43

Weighted average assumptions of share based payment

The fair value of share-based payments made with stock options to employees and non-employee directors was estimated on the measurement date using the Black-Scholes model using the following weighted average assumptions (N/A for 2015 as no options were granted in that period).

	Three Month Period Ended
	March 31,
	2016			2015
Risk free interest rate		1.65	%		N/A
Dividend yield		0.0	%		N/A
Expected term (in years)		7			N/A
Volatility		75	%		N/A

Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

The following is a summary of restricted stock activity for the three month period ended March 31, 2016, and the status of unvested restricted stock outstanding at March 31, 2016:

 

	Three Month Period Ended
	March 31, 2016
	Number of Restricted Shares		Grant-Date Fair Value
Outstanding at beginning of year		—	$	N/A
Granted		200,000	$	1.90
Vested		(50,000)	$	1.90
Outstanding at March 31, 2016		150,000	$	1.90

Stock compensation expense

We recorded stock compensation expense for the three month periods ended March 31, 2016 and 2015, as follows:

 

	Three Month Period Ended
	March 31,
	2016		2015
Research and development costs	$	37,469	$	6,944
Sales and marketing costs		63,499		5,755
General and administrative costs		77,510		7,773
Cost of product sales		(31,951)		13,037
Total	$	146,527	$	33,509