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12. STOCK-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
STOCK-BASED COMPENSATION

Stock Incentive Plans

 

Options

 

We have one long-term equity incentive plan which we refer to as the 2006 Equity Incentive Plan, which we amended and restated as of April 20, 2015 (the “Restated Plan”). The Restated Plan was approved by our stockholders at our annual stockholders meeting on June 11, 2015. As of December 31, 2016, we have reserved for issuance under the Restated Plan 12,000,000 shares of common stock. We can issue options, stock awards, stock appreciation rights and cash awards under the Restated Plan. Certain options granted under the Restated Plan to employees are intended to qualify as incentive stock options under existing tax regulations. Stock options generally vest over three to five years and expire five to ten years from the date of grant.

 

As of December 31, 2016, we had outstanding options to acquire 375,626 shares of our Common Stock, of which options to acquire 205,000 shares were exercisable. During the twelve months ended December 31, 2016, we granted options to acquire 170,626 shares under our Restated Plan.

  

The following summarizes all of our option transactions during the year ended December 31, 2016:

 

Outstanding Options Under the 2006 Plan  Shares   Weighted Average Exercise price Per Common Share  Weighted Remaining Contractual Life (in years)  Aggregate Intrinsic Value 
Balance, December 31, 2015   931,667   $4.69        
Granted   170,626   6.01        
Exercised   (576,667)  2.96        
Canceled, forfeited or expired   (150,000)  7.51        
Balance, December 31, 2016   375,626   6.82  4.45  $252,238 
Exercisable at December 31, 2016   205,000   7.51  0.92   176,400 

 

  

Aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between our closing stock price on December 31, 2016 and the exercise price, multiplied by the number of in-the-money options as applicable) that would have been received by the holder had all holders exercised their options on December 31, 2016. Total intrinsic value of options exercised during the years ended December 31, 2016 and 2015 was approximately $1.7 million and $6.2 million, respectively. As of December 31, 2016, total unrecognized stock-based compensation expense related to non-vested employee awards was $438,998, which is expected to be recognized over a weighted average period of approximately 3.0 years.

 

Restricted Stock Awards (“RSA’s”)

 

The Restated Plan permits the award of restricted stock awards (“RSA’s”). As of December 31, 2016, we have issued a total of 4,264,011 RSA’s of which 573,145 were unvested at December 31, 2016.

 

The following summarizes all unvested RSA’s activities during the year ended December 31, 2016:

 

   RSA’s   Weighted-Average Remaining Contractual Term (Years)  Weighted-Average Fair Value
RSA’s unvested at December 31, 2015   771,342      $5.17
Changes during the period           
Granted   802,803      $6.16
Vested   (1,000,999)     $5.13
Forfeited   –      $0.00
RSA’s unvested at December 31, 2016   573,145   0.57  $6.18

 

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 Restated 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, 2016 we issued 35,000 shares relating to these awards

 

In sum, of the 12,000,000 shares of common stock reserved for issuance under the Restated Plan, at December 31, 2016, we had issued 12,168,387 total shares between options, RSA’s and other stock awards. With options cancelled and RSA’s forfeited amounting to 2,975,009 and 59,053 shares, respectively, there remain 2,865,675 shares available under the Restated Plan for future issuance.