Stock Option Plans

9 Months Ended

Sep. 30, 2015

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

Note 12 — Stock Option Plans

A summary of stock option activity for the nine months ended September 30, 2015 is as follows:

			Weighted
		Number of	Average
	Shares		Exercise Price

Outstanding at December 31, 2014		720,551	$	4.46
Granted		254,000	$	5.45
Exercised		(15,833)	$	2.60
Expired or Forfeited		(34,167)	$	3.38

Outstanding at September 30, 2015		924,551	$	4.81

As of September 30, 2015, there were 397,148 options that were fully vested and exercisable at a weighted average exercise price of $6.09 per share. The weighted average remaining contractual term of the vested options is 7.0 years.

As of September 30, 2015 there were 525,468 unvested options exercisable at a weighted average exercise price of $3.83 per share. The weighted average remaining contractual term of the unvested options is 9.5 years.

The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. At September 30, 2015, the Company had approximately $1,833,333 of unrecognized stock compensation expense, which will be recognized over a weighted average period of approximately 2.1 years.

The following summary table shows the assumptions used to compute the fair value of options granted during the nine month period ended September 30, 2015 and their estimated value:

·	Expected term in years	6.0 years
·	Volatility	111.1% to 113.5%
·	Risk-free interest rate	1.74% to 1.84%
·	Expected annual dividends	None
·	Fair value of options issued	$1,159,754

The Company did not receive any cash from option exercises for the nine months ended September 30, 2015 and 2014. During the nine month period ended September 30, 2015 the Company issued a total of 8,456 shares of common stock as the result of the cashless exercise of 15,833 options.