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Share-Based Compensation
 9 Months Ended
Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
12. Share-Based Compensation
 
On January 1, 2016, the Company granted employees stock options to purchase 250,000 Shares at an exercise price of $0.90 per Share in accordance with the 2015 Intellinetics, Inc. Equity Incentive Plan, with vesting continuing until 2019. The total fair value of $196,250 for these stock options will be recognized by the Company over the applicable vesting period.
 
On February 10, 2016, the Company granted employees stock options to purchase 210,000 Shares at an exercise price of $0.96 per Share in accordance with the 2015 Intellinetics, Inc. Equity Incentive Plan, with vesting continuing until 2020. The total fair value of $174,748 for these stock options will be recognized by the Company over the applicable vesting period.
 
The weighted average estimated values of employee stock option grants, as well as the weighted average assumptions that were used in calculating such values during the three and nine months ended September 30, 2016, were based on estimates at the date of grant as follows:
 
 
 
January 1,
 
February 10,
 
 
 
2016 Grant
 
2016 Grant
 
Risk-free interest rate
 
 
1.76
%
 
1.15
%
Weighted average expected term
 
 
5 years
 
 
5 years
 
Expected volatility
 
 
134.18
%
 
132.97
%
Expected dividend yield
 
 
0.00
%
 
0.00
 
 
A summary of stock option activity during the nine months ended September 30, 2016 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, 2016
 
 
768,000
 
$
0.75
 
 
9 years
 
$
115,200
 
Granted
 
 
460,000
 
 
0.93
 
 
 
 
 
 
 
Exercised
 
 
-
 
 
 
 
 
 
 
 
 
 
Forfeited and expired
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding at September 30, 2016
 
 
1,228,000
 
$
0.82
 
 
9 years
 
$
115,200
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable at September 30, 2016
 
 
590,500
 
$
0.77
 
 
9 years
 
$
79,200
 
 
The weighted-average grant date fair value of options granted during the three and nine months ended September 30, 2016 was $0.81.
 
As of September 30, 2016, there was $452,409 of total unrecognized compensation costs related to stock options granted under our stock option agreements. $257,409 of the unrecognized compensation cost is expected to be recognized over a weighted-average period of three years. $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 three and nine months ended September 30, 2016 was $49,062.