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STOCK-BASED COMPENSATION PLANS
 9 Months Ended
Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
STOCK-BASED COMPENSATION PLANS
(5) STOCK-BASED COMPENSATION PLANS
 
The Company previously reserved 3,000,000 shares of common stock for issuance under its 2005 Stock Option Plan (the “Option Plan”). The Option Plan expired as of December 31, 2014. Vesting provisions are determined by the Board of Directors. All stock options under the Option Plan expire no later than ten years from the date of grant. Since the Option Plan expired, the options granted in 2015 and 2016 have not been approved by the Company’s shareholders and were issued as non-qualified stock options.
 
In the nine months ended September 30, 2016 and 2015, the Company recorded compensation expense related to stock options of $171 and $67, respectively.
 
During the nine months ended September 30, 2016, the Company granted options to purchase up to 804,000 shares of common stock to employees at a weighted average exercise of $0.27 per share . The 2016 grants were issued as non-qualified stock options.
 
The Company used the Black Scholes option pricing model to determine the fair value of stock option grants, using the following assumptions during the nine months ended September 30, 2016:
 
 
 
2016
 
Weighted average expected term
 
 
6.25 years
 
Weighted average volatility
 
 
122.73%
 
Weighted average risk-free interest rate
 
 
1.51%
 
Dividend yield
 
 
0%
 
 
A summary of stock option activity under all equity compensation plans for the nine months ended September 30, 2016, is presented below:
 
 
 
 
 
 
 
Weighted
 
 
 
 
 
 
 
Weighted
 
Average
 
 
 
 
 
Shares
 
Average
 
Remaining
 
Aggregate
 
 
 
Under
 
Exercise
 
Contractual
 
Intrinsic
 
 
 
Option
 
Price
 
Life
 
Value
 
Outstanding at January 1, 2016
 
 
1,685,250
 
$
0.46
 
 
 
 
 
 
Granted
 
 
804,000
 
$
0.27
 
 
 
 
 
 
Exercised
 
 
 
 
 
 
 
 
 
 
 
 
Forfeited
 
 
(329,000)
 
$
0.36
 
 
 
 
 
 
Outstanding at September 30, 2016
 
 
2,160,250
 
$
0.40
 
6.91 years
 
$
-
 
Exercisable at September 30, 2016
 
 
1,537,048
 
$
0.45
 
6.23 years
 
$
-
 
 
A summary of status of the Company’s non-vested share awards as of and for the nine months ended September 30, 2016, is presented below:
 
 
 
Non-vested Shares
 
Weighted Average
 
 
 
Under Option
 
Grant Date Fair Value
 
Non-vested at January 1, 2016
 
 
672,155
 
$
0.31
 
Granted
 
 
804,000
 
$
0.27
 
Vested
 
 
(523,953)
 
$
0.26
 
Forfeited
 
 
(329,000)
 
$
0.36
 
Non-vested at September 30, 2016
 
 
623,202
 
$
0.27
 
 
As of September 30, 2016, the Company had approximately $252 of unrecognized compensation expense related to stock options that will be recognized over a weighted average period of approximately 5 years.