STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2015

NOTE 8 STOCK-BASED COMPENSATION

During the nine months ended September 30, 2015, the Company granted stock options to certain employees for an aggregate of 0.1 million shares of common stock at a weighted average exercise price of $1.07 per share. The options vest equally over a three-year period if the individual remains affiliated with the Company (subject to acceleration of vesting in certain events) and are exercisable for a period of 5 years from the date of issue. During the three and nine months period ended September 30, 2014, the Company granted stock options to certain employees and directors for an aggregate of 1.7 million shares of common stock at a weighted average exercise price of $2.90 per share.

A summary of the assumptions used to calculate the fair value of the stock options granted, using the Black-Scholes model for the three and nine months ended September 30, 2015 and 2014 is as follows:


	Three months ended September 30,				Nine months ended September 30,
	2015		2014		2015		2014
Risk-free interest rate	—	%	1.01	%	1.10	%	1.01	%
Dividend yield	—	%	0	%	0	%	0	%
Volatility factor of the expected market price of common stock	—	%	70	%	74	%	70	%
Weighted-average expected life of option	—		3.5 years		3.5 years		3.5 years
Weighted-average grant date fair value	—		1.45		0.56		1.45

During the three and nine months ended September 30, 2015, the Company recorded stock option expense of $0.3 million and $1.0 million respectively. This compares to $0.2 million and $0.9 million for the three and nine months ended September 30, 2014.