Stock-Based Compensation

9 Months Ended

Sep. 30, 2015

GAAP requires that all stock-based compensation be recognized as an expense in the financial statements and that such costs be measured at the fair value of the award.

The Company has granted options/warrants to consultants. These awards generally vest ratably over 12 to 60 months from the date of grant and the Company charges to operations quarterly the current market value of the options using the Black-Scholes method. During the nine months ended September 30, 2015 and 2014, a charge (benefit) of $10,007 and $31,879, respectively, and during the three months ended September 30, 2015 and 2014, $0 and $(33,901), respectively was recorded to operations reflecting the fair value of the options using the Black-Scholes method with the following weighted average assumptions:

	2015			2014
Risk free interest rate		1.7	%		1.7	%
Option Life		8.9 years			5.2 years
Volatility		65	%		55	%

The Company did not grant any stock options to employees and directors during the three and nine months ended September 30, 2015 and 2014.

In connection with the restricted stock grants to employees and directors, the Company charged $57,967 and $131,643 to operations during the three months ended September 30, 2015 and 2014, respectively and $173,890 and $394,930 was charged to operations during the nine months ended September 30, 2015 and 2014, respectively. As of September 30, 2015, remaining unamortized compensation costs in connection with these restricted stock grants was $58,000 which will be recognized over the next three month period.