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STOCK OPTIONS | 12 Months Ended
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Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
STOCK OPTIONS | STOCK OPTIONS On October 30, 2007, our stockholders approved and the Board of Directors adopted an amendment to the 2003 Executive and Employee Stock Option Plan (the “Plan”) to increase the maximum aggregate number of shares of common stock reserved for issuance under the Plan from 1.2 million shares (already reserved against outstanding options) to 1.7 million shares. Except for the increase in the number of shares covered by the Plan, the Plan remained otherwise unchanged. In 2001, the Board of Directors adopted the 2001 Executive and Employee Stock Option Plan which reserved for issuance 1.2 million stock options. Stock options typically have a ten-year life and currently vest over a seven year period. In July of 2012, the stockholders approved the 2012 Share Incentive Plan covering a total of 750,000 shares of common stock issuable upon exercise of options to be granted under the plan. At December 31, 2016 approximately 37,000 remain to be issued in this plan. In July of 2015, the stockholders approved the 2015 Executive and Employee Stock Option Plan covering a total of 2,000,000 shares of common stock issuable upon exercise of options to be granted under the plan. At December 31, 2016 approximately 693,078 remain to be issued in this plan. The status of our stock options and stock awards are summarized as follows:
| Number of options |  | Weighted average exercise price
Outstanding at December 31, 2014 | 2,864,189 |  |  | $ | 3.69 |
Granted | 830,922 |  |  | 2.21 |
Exercised | (97,500 | ) |  | 2.25 |
Canceled and forfeited | (466,164 | ) |  | 3.57 |
Outstanding at December 31, 2015 | 3,131,447 |  |  | $ | 3.38 |
Granted | 810,762 |  |  | 1.87 |
Exercised | (36,250 | ) |  | 3.62 |
Canceled and forfeited | (153,750 | ) |  | 3.69 |
Outstanding at December 31, 2016 | 3,752,209 |  |  | $ | 3.04 |
Exercisable at December 31, 2016 | 2,006,702 |  |  | $ | 3.79 |
| Number of options |  | Weighted average grant date fair value
Non-vested at December 31, 2015 | 1,707,411 |  |  | $ | 2.63 |
Granted | 810,762 |  |  | 0.89 |
Vested | (618,917 | ) |  | 1.08 |
Forfeited | (153,750 | ) |  | 1.75 |
Non-vested at December 31, 2016 | 1,745,506 |  |  | 1.25 |
Common shares required to be issued upon the exercise of stock options and warrants would be issued from our authorized and unissued shares. We calculated the fair value of issued options utilizing a trinomial lattice with an expected life calculated via the simplified method as we do not have sufficient history to determine actual expected life.
| 2016 Grants |  | 2015 Grants |  | 2014 Grants
Option value | $0.80 | - | $0.91 |  | $0.90 | - | $1.84 |  | $3.50 | - | $4.30
Risk-free rate | 1.5% | - | 1.8% |  | 0.2% | - | 1.6% |  | 0.6%
Expected dividend yield | —% |  | —% |  | —%
Expected volatility | 49.5% | - | 50.3% |  | 53.0% | - | 54.0% |  | 53.0% | - | 54.0%
Expected term (in years) | 6 |  | 4 | - | 10 |  | 4 | - | 10
As of December 31, 2016, the aggregate intrinsic value of all stock options outstanding and expected to vest was approximately $4,150,334 and the aggregate intrinsic value of currently exercisable stock options was approximately $1,574,318. The intrinsic value of each option share is the difference between the fair market value of our common stock and the exercise price of such option share to the extent it is “in-the-money”. Aggregate intrinsic value represents the value that would have been received by the holders of in-the-money options had they exercised their options on the last trading day of the year and sold the underlying shares at the closing stock price on such day. The intrinsic value calculation is based on the $3.59 closing stock price of our common stock on December 31, 2016, the last trading day of 2016. The total number of in-the-money options outstanding and exercisable as of December 31, 2016 was approximately 1,211,014. As of December 31, 2015, the aggregate intrinsic value of all stock options outstanding and expected to vest was approximately $102,992 and the aggregate intrinsic value of currently exercisable stock options was approximately $11,250. The intrinsic value of each option share is the difference between the fair market value of our common stock and the exercise price of such option share to the extent it is “in-the-money”. Aggregate intrinsic value represents the value that would have been received by the holders of in-the-money options had they exercised their options on the last trading day of the year and sold the underlying shares at the closing stock price on such day. The intrinsic value calculation is based on the $2.10 closing stock price of our common stock on December 31, 2015, the last trading day of 2015. The total number of in-the-money options outstanding and exercisable as of December 31, 2015 was approximately 410,715. The total intrinsic value of options exercised during the years ended December 31, 2016, 2015 and 2014 was approximately $119,026, $51,575 and $229,135, respectively. Intrinsic value of exercised shares is the total value of such shares on the date of exercise less the cash received from the option holder to exercise the options. The total cash proceeds received from the exercise of stock options was approximately $12,300 and $209,250 and $87,475 for the years ended December 31, 2016, 2015 and 2014, respectively. The total fair value of options granted during the years ended December 31, 2016, 2015 and 2014 was approximately $1,516,125, $932,771 and $1,107,180, respectively. The total fair value of option shares vested during the years ended December 31, 2016, 2015 and 2014, was approximately $612,464, $412,638 and $637,000, respectively. During the year ended December 31, 2016, we issued 9,614 common shares in exchange for 36,250 non-employee stock options and 26,636 common shares (via stock swaps). Net proceeds from the issuance of common shares along with the shares received in the stock swap exercises were approximately $12,300 for the year ended December 31, 2016. During the year ended December 31, 2015, we issued 33,520 common shares in exchange for 114,500 non-employee stock options and 80,980 common shares (via stock swaps). During the year ended December 31, 2014, we issued 73,699 common shares in exchange for 107,000 employee and non-employee stock options and 33,301 common shares (via stock swaps). Net proceeds from the issuance of common shares along with the shares received in the stock swap exercises were approximately $80,475 for the year ended December 31, 2014. As of December 31, 2016, there was approximately $1.2 million of total unrecognized stock-based compensation cost, related to unvested stock options granted under the Amended Plan. This cost is expected to be recognized over a weighted-average period of approximately 4 years. Allocation of stock based compensation expense was as follows:
| Year Ended December 31,
(In thousands) | 2016 |  | 2015 |  | 2014
Cost of sales | $ | 2 |  |  | $ | 3 |  |  | $ | 8 |
Research and development | 27 |  |  | 39 |  |  | 51 |
Salaries and related costs | 780 |  |  | 526 |  |  | 329 |
Total | $ | 809 |  |  | $ | 568 |  |  | $ | 388 |

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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