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STOCK-BASED COMPENSATION PLANS
 3 Months Ended
Mar. 31, 2017
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 of the expired plan were to be 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 2016 and 2017 have not been approved by the Company’s shareholders and were issued as non-qualified stock options.
 
In the three months ended March 31, 2017 and 2016, the Company recorded compensation expense related to stock options of $24 and $143, respectively.
 
During the three months ended March 31, 2017, the Company granted options to purchase up to 165,000 shares of common stock to employees at a weighted average exercise of $0.21 per share. The 2017 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 March 31, 2017:
 
 
 
2017
 
Weighted average expected term
 
 
5.19 years
 
Weighted average volatility
 
 
129.04 %
 
Weighted average risk-free interest rate
 
 
1.64 %
 
Dividend yield
 
 
0%
 
  
A summary of stock option activity under all equity compensation plans for the nine months ended March 31, 2017, is presented below:
 
 
 
 
 
 
 
Weighted
 
 
 
 
 
 
 
Weighted
 
Average
 
 
 
 
 
Shares
 
Average
 
Remaining
 
Aggregate
 
 
 
Under
 
Exercise
 
Contractual
 
Intrinsic
 
 
 
Option
 
Price
 
Life
 
Value
 
Outstanding at January 1, 2017
 
 
2,190,250
 
$
0.40
 
 
 
 
 
 
Granted
 
 
165,000
 
$
0.21
 
 
 
 
 
 
Exercised
 
 
—
 
 
—
 
 
 
 
 
 
Forfeited
 
 
(11,500)
 
$
0.21
 
 
 
 
 
 
Outstanding at March 31, 2017
 
 
2,343,750
 
$
0.39
 
6.6 years
 
$
155,146
 
Exercisable at March 31, 2017
 
 
1,693,295
 
$
0.43
 
5.9 years
 
$
121,466
 
 
A summary of status of the Company’s non-vested share awards as of and for the three months ended March 31, 2017, is presented below:
 
 
 
Non-vested Shares
 
Weighted Average
 
 
 
Under Option
 
Grant Date Fair Value
 
Non-vested at January 1, 2017
 
 
572,453
 
$
0.27
 
Granted
 
 
165,000
 
$
0.21
 
Vested
 
 
(86,998)
 
$
0.17
 
Forfeited
 
 
—
 
$
—
 
Non-vested at March 31, 2017
 
 
650,455
 
$
0.27
 
 
As of March 31, 2017, the Company had approximately $84 of unrecognized compensation expense related to stock options that will be recognized over a weighted average period of approximately 2.55 years.