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11. STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2017

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

STOCK-BASED COMPENSATION

NOTE 11 – 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 first amended and restated as of April 20, 2015 and again on March 9, 2017 (“the Restated Plan”). The Restated Plan was approved by our stockholders at our annual stockholders meeting on June 8, 2017. We have reserved for issuance under the 2017 Restated Plan 14,000,000 shares of common stock. We can issue options, stock awards, stock appreciation rights, stock units and cash awards under the 2017 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, 2017, we had outstanding options to acquire 420,149 shares of our common stock, of which options to acquire 43,334 shares were exercisable. The following summarizes all of our option transactions for the twelve months ended December 31, 2017:

Outstanding Options 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, 2016			375,626			$	6.82
Granted			209,523				6.95
Exercised			–				–
Canceled, forfeited or expired			(165,000	)			8.83
Balance, December 31, 2017			420,149				6.10				7.74			$	1,722,210
Exercisable at December 31, 2017			43,334				2.27				0.97				339,503

Aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between our closing stock price on December 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 December 31, 2017. No options were exercised during the twelve months ended December 31, 2017. As of December 31, 2017, total unrecognized stock-based compensation expense related to non-vested employee awards was $842,343 which is expected to be recognized over a weighted average period of approximately 2.6 years.

Restricted Stock Awards (“RSA’s”)

The Restated Plan permits the award of restricted stock awards (“RSA’s”). As of December 31, 2017, we have issued a total of 4,945,460 RSA’s of which 447,351 were unvested at December 31, 2017. The following summarizes all unvested RSA’s activities during the twelve months ended December 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			681,448							$	5.98
Vested			(807,242	)						$	6.02

RSA's unvested at December 31, 2017			447,351				0.32			$	6.17

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 twelve months ended December 31, 2017 we issued 35,800 shares relating to these awards, amounting to $361,370 of compensation expense.

Plan summary

In summary, of the 14,000,000 shares of common stock reserved for issuance under the Restated Plan, at December 31, 2017, we had issued 13,195,159 total shares between options, RSA’s and other stock awards. With options cancelled and RSA’s forfeited amounting to 3,140,009 and 59,053 shares, respectively, there remain 4,003,903 shares available under the Restated Plan for future issuance.