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12. STOCK-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2014
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 December 31, 2014, 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 December 31, 2014, 2,049,176, or approximately 97.9%, of the 2,092,509 outstanding stock options granted under our 2006 Plan are fully vested.  During the year ended December 31, 2014, we did not grant options or warrants under our 2006 Plan.

 

We have issued warrants outside the 2006 Plan under various types of arrangements to employees, and in exchange for outside services. All warrants issued to employees or consultants after our February 2007 listing on the NASDAQ Global Market have been characterized as awards under the 2006 Plan. All warrants outside the 2006 Plan have been issued with an exercise price equal to the fair value of the underlying common stock on the date of grant.

 

As of December 31, 2014, no warrants remain outstanding outside the 2006 Plan.

  

The following summarizes all of our option and warrant transactions during the year ended December 31, 2014:

 

Outstanding Options and Warrants
Under the 2006 Plan		   Shares     Weighted
Average 
exercise
price
Per
Common
Share		     Weighted
Average
Remaining
Contractual
Life
(in years)		     Aggregate
Intrinsic
Value		  
Balance, December 31, 2013     4,701,250     $ 3.15                  
Granted     –       –                  
Exercised     (2,293,741 )     2.38                  
Canceled, forfeited or expired     (315,000 )     5.91                  
Balance, December 31, 2014     2,092,509       3.58       1.19     $ 10,307,826  
Exercisable at December 31, 2014     2,049,176       3.61       1.14       10,030,655  

 

 

Non-Plan
Outstanding Warrants		   Shares     Weighted
Average
Exercise
price
Per
Common
Share		     Weighted
Average
Remaining
Contractual
Life
(in years)		     Aggregate
Intrinsic
Value		  
Balance, December 31, 2013     200,000     $ 2.62                  
Granted     –       –                  
Exercised     (200,000 )     2.62                  
Canceled, forfeited or expired     –       –                  
Balance, December 31, 2014     –       –       –     $ –  
Exercisable at December 31, 2014     –       –       –       –  

 

Aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between our closing stock price on December 31, 2014 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 December 31, 2014. Total intrinsic value of options and warrants exercised during the year ended December 31, 2014 and 2013 was approximately $7.3 million and $2.3 million, respectively. As of December 31, 2014, total unrecognized stock-based compensation expense related to non-vested employee awards was $34,300, which is expected to be recognized over a weighted average period of approximately 1.9 years.

 

Restricted Stock Awards (“RSA’s”)

 

The 2006 Plan permits the award of restricted stock. As of December 31, 2014, we have issued a total of 2,716,785 RSA’s of which 942,023 were unvested at December 31, 2014.

 

The following summarizes all unvested RSA’s activities during the year ended December 31, 2014:

 

        Weighted-AverageRemaining Contractual     Weighted-Average  
  Shares     Term (Years)     Fair Value  
RSA's outstanding at December 31, 2013   786,667             $ 2.50  
Changes during the period                      
Granted   1,026,785             $ 1.71  
Vested   (871,428 )           $ 2.16  
RSA's at December 31, 2014   942,024       1.01     $ 1.96  

 

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

 

Other stock bonus awards

 

The 2006 Plan also permits the award of stock bonuses not subject to any future service period. These awards are valued and expensed based on the closing price of our common stock on the date of award. During the year ended December 31, 2014 we issued 130,000 shares relating to these awards

 

In sum, of the 11,000,000 shares of common stock reserved for issuance under the 2006 Plan, at December 31, 2014, we had 7,245,535 options, warrants, shares of restricted stock and other bonus awards issued and 3,754,465 shares of common stock available for future awards.