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13. STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
13. STOCK-BASED COMPENSATION

Pursuant to the Company’s Amended and Restated 2007 Equity Incentive Plan approved in 2011(“Plan”), the aggregate number shares of the Company’s common stock available for grant of stock options and issuance is 4,341,989 shares. On October 5, 2015, during the annual meeting of the Company’s stockholders, the aggregate number of shares reserved and available for grant and issuance pursuant to the Plan was increased to 10,341,989. As of March 31, 2016, the number of shares of the Company’s common stock available for issuance under the Plan is 6,993,489.

 

The fair value of each option award below is estimated on the date of grant using the Black-Scholes option-pricing model. The risk free rate is based on the yield-to-maturity in continuous compounding of the US Government Bonds with the time-to-maturity similar to the expected tenor of the option granted, volatility is based on the annualized historical stock price volatility of the Company, and the expected life is based on the estimated average of the life of options using the “simplified” method, as prescribed in FASB ASC 718, due to insufficient historical exercise activity during recent years as a basis from which to estimate future exercise patterns.

 

In early March 2016, the Company granted to an independent director an option to purchase 12,500 shares of the Company’s common stock at an exercise price of $1.78 per share and the options vested immediately. The options were valued at $7,300 fair value, with assumed 65.69% volatility, a three-year expiration term with expected tenor of 1.33 years, a risk free rate of 0.71% and no dividend yield. For the three-month period ended March 31, 2016, $7,300 was recognized as general and administrative expenses.

  

The following table summarizes all Company stock option transactions between January 1, 2016 and March 31, 2016.

 

   

Number of Option

and Warrants

Outstanding and exercisable

  

Weighted- Average Exercise price of Option

and Warrants

    

Range of

Exercise Price per Common Share

  
Balance, January 1, 2016     2,399,000     $1.39       $0.95 - $12.60  

Granted and vested during the period

ended March 31, 2016

     12,500     $1.78       $1.78  

Expired during the

period ended March 31, 2016

     (50,000 )   $12.60       $12.60  
Balance, March 31, 2016     2,361,500     $1.15       $0.95 - $4.80  

  

 

    Stock and Warrants Options Exercisable and Outstanding
            Weighted Average  
            Remaining  
    Outstanding at March 31, 2016  

Range of

Exercise Prices

  

Contractual Life

 (Years)

  

 

Exercisable and outstanding

   2,361,500   $0.95 - $4.80   1.92  

 

 

The aggregate intrinsic value of options outstanding and exercisable as of March 31, 2016 was $1,169,892.