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Stock-Based Compensation
9 Months Ended
Sep. 30, 2015
Stock-Based Compensation [Abstract]  
Stock-Based Compensation
Note 5 — Stock-Based Compensation

We have a stock incentive plan for employees and others called the VirnetX Holding Corporation 2013 Equity Incentive Plan (the "Plan"), which has been approved by our stockholders.  The Plan provides for grants of 14,124,469 shares of our common stock, including stock options and stock purchase rights (“RSUs”), and will expire in 2023.  As of September 30, 2015, 1,469,552 shares remained available for grant under the Plan.

During the three months ended September 30, 2015, we granted no options. During the three months ended September 30, 2014, we granted options for a total of 206,500 shares with a weighted average grant date fair value of $11.47.

During the nine months ended September 30, 2015, we granted options for a total of 294,000 shares with a weighted average grant date fair value of $4.19. The fair values of options at the grant date was estimated utilizing the Black-Scholes valuation model with the following weighted average assumptions for the nine months ended September 30, 2015: (i) dividend yield on our common stock of 0 percent, (ii) expected stock price volatility of 86 percent (iii) a risk-free interest rate of 2.21 percent and (iv) expected option term average of 6 years.

During the nine months ended September 30, 2014, we granted options for a total of 261,500 shares. The weighted average fair values at the grant dates for options issued during the nine months ended September 30, 2014 was $11.23 per option.  The fair values of options at the grant date was estimated utilizing the Black-Scholes valuation model with the following weighted average assumptions for the nine months ended September 30, 2014 (i) dividend yield on our common stock of 0 percent, (ii) expected stock price volatility of 87 percent (iii) a risk-free interest rate of 2.56 percent and (iv) an expected option term of 6 years.

During the three months ended September 30, 2015 we granted no RSUs. During the three months ended September 30, 2014, we granted 137,666 RSUs. The weighted average fair values at the grant date for RSUs issued during the three months ended September 30, 2014 was $15.40.

During the nine months ended September 30, 2015 and 2014, we granted 162,665 and 154,332 RSUs, respectively. The weighted average fair value at the grant dates for RSUs issued during the nine months ended September 30, 2015 and 2014 was $5.57 and $15.30 per RSU, respectively. RSUs, which are subject to forfeiture if employment terminates prior to the shares vesting, are expensed ratably over the vesting period.

Stock-based compensation expense included in general and administrative expense was $1,889 and $5,326 for the three and nine months ended September 30, 2015, respectively and $2,221 and $5,952 for the three and nine months ended September 30, 2014, respectively.

As of September 30, 2015, the unrecognized stock-based compensation expense related to non-vested stock options and RSUs was $6,214 and $3,996, respectively, which will be amortized over an estimated weighted average period of approximately 2.59 and 2.57 years, respectively.

During the nine month period ended September 30, 2015 we issued 103,818 new shares of common stock as a result of RSUs which vested and were paid. We also issued 143,100 shares to employees who exercised options during the period.