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6. STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2017

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 March 31, 2017, 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 March 31, 2017, we had outstanding options to acquire 560,149 shares of our Common Stock, of which options to acquire 205,000 shares were exercisable. During the three months ended March 31, 2017, we granted options to acquire 184,523 shares under our Restated Plan.

The following summarizes all of our option transactions for the three months ended March 31, 2017:

										Weighted Average
						Weighted Average				Remaining				Aggregate
Outstanding Options						Exercise price				Contractual Life				Intrinsic
Under the 2006 Plan		Shares				Per Common Share				(in years)				Value

Balance, December 31, 2016			375,626			$	6.82
Granted			184,523				6.30
Balance, March 31, 2017			560,149				6.65				6.04			$	163,700
Exercisable at March 31, 2017			205,000				7.51				0.68				154,400

Aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between our closing stock price on March 31, 2017 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 March 31, 2017. No options were exercised during the three months ended March 31, 2017. As of March 31, 2017, total unrecognized stock-based compensation expense related to non-vested employee awards was $996,586, which is expected to be recognized over a weighted average period of approximately 3.3 years.

Restricted Stock Awards (“RSA’s”)

The Restated Plan permits the award of restricted stock awards (“RSA’s”). As of March 31, 2017, we have issued a total of 4,896,036 RSA’s of which 539,993 were unvested at March 31, 2017.

The following summarizes all unvested RSA’s activities during the three months ended March 31, 2017:

						Weighted-Average
						Remaining
						Contractual				Weighted-Average
		RSA's				Term (Years)				Fair Value
RSA's unvested at December 31, 2016			573,145							$	6.18
Changes during the period
Granted			632,025							$	6.05
Vested			(665,177	)						$	6.40
RSA's unvested at March 31, 2017			539,993				0.96			$	5.55

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 three months ended March 31, 2017 we issued 10,000 shares relating to these awards.

Plan summary

In sum, of the 12,000,000 shares of common stock reserved for issuance under the Restated Plan, at March 31, 2017, we had issued 12,994,935 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 2,039,137 shares available under the Restated Plan for future issuance.