Share-Based Compensation

6 Months Ended

Jun. 30, 2015

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

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

12. Share-Based Compensation

On April 30, 2015, the Company entered into a Non-qualified Stock Option Agreement with Sophie Pibouin, a director of the Company. The agreement granted options to purchase 128,000 shares of the Company prior to the expiration date of April 29, 2025 at an exercise price of $0.75. The options granted will vest on a graded scale over a period of time through October 31, 2015. The unvested options will not be exercisable on or after the director’s termination of continuous service, as defined in the agreement.

On April 30, 2015, the Company entered into a Non-qualified Stock Option Agreement with Murray Gross, a director of the Company. The agreement granted options to purchase 640,000 shares of the Company prior to the expiration date of April 29, 2025 at an exercise price of $0.75. 400,000 of the options granted are immediately vested on the date of grant, and the remaining 240,000 options granted will vest upon the date at which the Company first reports two consecutive fiscal quarters with revenues of One Million Dollars ($1,000,000) each. The unvested options will not be exercisable on or after the director’s termination of continuous service, as defined in the agreement.

The weighted average estimated values of director stock option grants, as well as the weighted average assumptions that were used in calculating such values during the 3 and 6 months ended June 30, 2015, were based on estimates at the date of grant as follows:


Risk-free interest rate	1.43	%
Weighted average expected term	5 years
Expected volatility	143.10	%
Expected dividend yield	0.00	%

A summary of stock option activity during the 3 and 6 months ended June 30, 2015 under our stock option agreements is as follows:

					Weighted-
			Weighted-		Average
	Shares		Average		Remaining	Aggregate
	Under		Exercise		Contractual	Intrinsic
	Option		Price		Life	Value
Outstanding at January 1, 2015		-
Granted		768,000	$	0.75
Exercised		-
Forfeited and expired		-

Outstanding at June 30, 2015		768,000	$	0.75	10 years	$	115,200

Exercisable at June 30, 2015		464,000	$	0.75	10 years	$	69,600

The weighted-average grant date fair value of options granted during the 3 and 6 months ended June 30, 2015 was $0.81.

As of June 30, 2015, there was $230,000 of total unrecognized compensation costs related to stock options granted under our stock option agreements. $35,000 of the unrecognized compensation cost is expected to be recognized over a weighted-average period of four months. $195,000 of the unrecognized compensation cost will be recognized upon satisfaction of the vesting contingency. The total fair value of stock options that vested during the 3 months ended June 30, 2015 was $395,000.

No stock options were exercised during the 3 or 6 months ended June 30, 2015.