Stock-Based Compensation

3 Months Ended

Mar. 31, 2015

8.Stock-Based Compensation

During the three months ended March 31, 2015, the Company did not grant any options to purchase shares of its common stock and no options were exercised. During the three months ended March 31, 2015, 137,975 options were cancelled or expired unexercised. Options to purchase an aggregate of 3,510,272 shares of common stock were outstanding as of March 31, 2015, and options to purchase an aggregate of 1,318,043 shares of common stock were exercisable as of March 31, 2015. All options outstanding as of March 31, 2015 are non-plan options and not granted under the terms of any equity based compensation plan. On March 5, 2015, the Company’s Board of Directors approved the RestorGenex Corporation 2015 Equity Incentive Plan (the “2015 Equity Plan”), subject to approval by the Company’s stockholders at the next annual meeting of stockholders currently scheduled to be held on June 17, 2015. If approved by the Company’s stockholders, the 2015 Equity Plan will allow for the issuance of up to a maximum of 2,500,000 shares of common stock in connection with the grant of stock-based awards, including stock options, restricted stock, restricted stock units, stock appreciation rights and other types of awards as deemed appropriate.

Options are granted with exercise prices equal to the fair value of the common stock on the date of grant. The Company recognizes the fair value of stock-based awards granted in exchange for employee and non-employee services as a cost of those services. The Company recognizes stock-based compensation expense for option awards on a straight-line basis over the vesting period.

The following table summarizes the stock-based compensation expense for employees and non-employees recognized in the Company’s condensed consolidated statements of operations for the periods indicated:

	Three Months Ended March 31,
	2015		2014
Research and development	$	231,524	$	0
General and administrative	373,903		149,885
Total stock-based compensation expense	$	605,427	$	149,885

As of March 31, 2015, the Company had $5,171,725 of total unrecognized compensation cost related to unvested stock-based compensation arrangements granted to employees. That cost is expected to be recognized over a weighted-average service period of 2.15 years.

- 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.

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