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Stock Option Plan | 12 Months Ended
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Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ## Note 11 — Stock Option Plan On May 17, 2013, the Company adopted the 2013 Equity Incentive Plan (the “Plan”) and reserved 487,932 shares of common stock for issuance under the Plan, including stock options, stock awards and stock bonuses. The maximum number of shares that may be granted under the Plan will be increased effective the first day of each of the Company’s fiscal quarters provided that the number of shares that may be granted under the Plan does not exceed 839,983 shares. The Plan is administered by the Compensation Committee of the Company’s board of directors. The persons eligible to participate in the Plan are employees, non-employee members of the board of directors, consultants and other independent advisors who provide services to the Company. Options issued under the Plan may have a term of up to ten years and may have variable vesting. On July 19, 2013, the Company granted 346,813 stock options to various employees to purchase shares of common stock at an exercise price of $5.00 per share. The options vest in equal installments on December 31, 2013, 2014 and 2015. During November and December 2013, the Company granted 40,500 stock options to newly hired employees and 69,859 stock options in connection with separation agreements. The exercise price of the stock options issued to new employees was the closing price of the Company’s stock on the date of grant and the options vest in equal annual installments over 4 years. The exercise price and vesting term of the separation options was set in accordance with the separation agreements. The options granted in 2013 were valued at $1,508,832 using the Black-Scholes option pricing model. ##### Awards Granted Outside the Plan During the year ended December 31, 2012, the Company granted 18,965 stock options to purchase shares of common stock at an exercise price of $6.328 to an executive employee. The options were scheduled to vest over a period of 4 years commencing from the date of grant. During 2013, these options were forfeited upon termination of the employee. The options were valued at approximately $85,000 using the Black-Scholes option pricing model. Approximately $15,943 and $12,400, respectively, relating to these options was charged to expense during the years ended December 31, 2013 and 2012. As permitted by SAB 107, due to the Company’s insufficient history of option activity, management utilizes the simplified approach to estimate the expected term of stock options, which represents the period of time that options granted are expected to be outstanding. The risk free interest rate for periods within the contractual life of the option is based on the U.S. treasury yield in effect at the time of grant. The volatility is determined based on management’s estimate or historical volatilities of comparable companies. The Company has never declared or paid dividends and has no plans to do so in the foreseeable future. The assumptions used in the Black-Scholes model are as follows:
|  | For the year ended December 31, |
|  | 2013 |  | 2012 |
Risk-free interest rate |  | 1.46 to 1.86% |  | 1.41% |
Expected dividend yield |  | 0% |  | 0% |
Expected lives |  | 5.58 to 6.25 years |  | 5.25 years |
Expected volatility |  | 90% |  | 90% |
A summary of the Company’s stock option activity and related information is as follows:
|  | 2013 |  | 2012 |
|  | Stock Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Life (in years) |  | Stock Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Life (in years) |
Outstanding at January 1 |  | 158,108 |  | $ | 2.716 |  | 7.8 |  | 155,420 |  | $ | 2.654 |  | 8.9 |
Granted |  | 457,172 |  | $ | 4.769 |  |  |  | 18,965 |  | $ | 6.328 |  |  |
Exercised |  | — |  |  | — |  |  |  | — |  |  | — |  |  |
Forfeited/Expired/Exchanged |  | (129,707) |  | $ | 4.249 |  |  |  | (16,277) |  | $ | 6.328 |  |  |
Outstanding at December 31 |  | 485,573 |  | $ | 4.240 |  | 8.2 |  | 158,108 |  | $ | 2.716 |  | 7.8 |
Exercisable at December 31 |  | 202,718 |  | $ | 3.699 |  | 8.0 |  | 137,157 |  | $ | 2.281 |  | 8.0 |
The following table sets forth additional information about stock options outstanding at December 31, 2013:
|  |  |  | Weighted Average |  |  |  |  |  |
Range of Exercise |  | Options |  | Remaining |  | Weighted Average |  | Options |
Prices |  | Outstanding |  | Life(in years) |  | Exercise Price |  | Exercisable |
$0.09 – $1.99 |  | 39,753 |  | 7.7 |  | $ | 0.3562 |  | 13,010 |
$2.00 – $4.99 |  | 99,390 |  | 6.6 |  | $ | 2.9715 |  | 99,390 |
$5.00 – $7.00 |  | 346,430 |  | 8.7 |  | $ | 5.0494 |  | 90,318 |
|  | 485,573 |  |  |  |  |  |  | 202,718 |
The estimated aggregate pretax intrinsic value (the difference between the Company’s stock price on the last day of the year ended December 31, 2013 and the exercises price, multiplied by the number of in-the-money options) is approximately $326,000. This amount changes based on the fair value of the Company’s stock. As of December 31, 2013, there was $772,514 of unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted average period of 2 years.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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