Stock-based Compensation

9 Months Ended

Sep. 30, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-based Compensation

Note 4 – Stock-based Compensation

Options

At September 30, 2016 the Company had four stock-based compensation plans.  Three of these plans are described more fully in Note 16 to the audited consolidated financial statements for the year ended December 31, 2015, contained in the Company’s most recently filed Annual Report on Form 10-K.  The fourth plan was adopted on May 5, 2016 and received approval from the Company’s shareholders at the special meeting of stockholders held on September 14, 2016.  The maximum aggregate number of shares of common stock that may be issued pursuant to the stock option plan is 3,150,000.  Refer to the Form 8-K filed on September 15, 2016 and the Definitive Proxy Statement filed on August 5, 2016 with the SEC for more information on the 2016 stock option plan.  

During the first nine months of 2016, the Company issued options to purchase a total of 70,000 shares of common stock to the Company’s independent directors as part of their annual compensation.  During the same period, the Company cancelled options to purchase 187,500 shares of common stock as a result of the expiration of the allowable exercise period for options held by the former directors of the Company, who resigned in the second quarter of 2016.  

The following summarizes the changes in common stock options for the nine months ended September 30, 2016:

	Options			Weighted Average Exercise Price
Outstanding at December 31, 2015		2,175,000		$	1.70
Granted		70,000		$	0.24
Exercised		(40,000	)	$	0.12
Cancelled		(187,500	)	$	0.83
Expired		(20,000	)	$	0.15
Outstanding at September 30, 2016		1,997,500		$	1.77
Options exercisable at September 30, 2016		1,862,500		$	1.86

The Company recognized stock-based compensation expense related to stock options of $7,000 and $50,000 for the three and nine months ended September 30, 2016, respectively.  As of September 30, 2016, there is approximately $33,000 of unrecognized stock-based compensation expense related to unvested option awards outstanding, which is expected to be recognized over a weighted average period of 2.2 years.

Restricted Stock

Restricted stock awards represent a right to receive shares of common stock at a future date determined in accordance with the participant’s award agreement.  There is no exercise price and no monetary payment required for receipt of restricted stock awards or the shares issued in settlement of the award.  Instead, consideration is furnished in the form of the participant’s services to the Company.  Compensation cost for these awards is based on the fair value on the date of grant and recognized as compensation expense on a straight-line basis over the requisite service period.

The following summarizes the changes in restricted stock awards for the nine months ended September 30, 2016:

	Restricted Stock Awards			Weighted AverageGrant Date Fair Value Per Share
Unvested Awards at December 31, 2015		150,000		$	0.38
Granted		—			—
Vested		(75,000	)	$	0.38
Unvested awards at September 30, 2016		75,000		$	0.38
Vested awards at September 30, 2016		225,000		$	0.38

Stock-based compensation expense related to restricted stock awards was $7,000 and $21,000 for the three and nine months ended September 30, 2016, respectively.