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13. STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 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 of shares of the Company’s common stock available for grant and issuance of stock options 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 June 30, 2016, the number of shares of the Company’s common stock available for issuance under the Plan is 6,980,989.

 

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 historical option exercise pattern.

 

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 and six-month period ended June 30, 2016, $0 and $7,300 was recognized as general and administrative expenses.

 

On May 7, 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 $1.45 per share and the options vested immediately. The options were valued at $5,500 fair value, with assumed 66.40% volatility, a three-year expiration term with an expected tenor of 1.33 years, a risk free rate of 0.58% and no dividend yield. For the three-month and six-month period ended June 30, 2016, $5,500 was recognized as general and administrative expenses.

 

The following table summarizes all Company stock option transactions between January 1, 2016 and June 30, 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 June 30, 2016

     25,000   $1.62   $ 1.45-1.78  

Exercised during the period ended

June 30, 2016

     (36,000 ) $1.20   $ 0.98-1.43  

Expired during the period ended

June 30, 2016

     (50,000 )   $12.60   $ 12.60  
Balance, June 30, 2016     2,338,000   $1.16   $ 0.95 - $4.80  

 

 

 

    Stock and Warrants Options Exercisable and Outstanding  
                Weighted Average  
                Remaining  
    Outstanding at June 30, 2016    

Range of

Exercise Prices

    

Contractual Life

 (Years)

  

 

Exercisable and outstanding

     2,338,000     $ 0.95 - $4.80       1.66  
                         

 

The aggregate intrinsic value of options outstanding and exercisable as of June 30, 2016 was $1,003,555.

 

The total intrinsic value of options exercised was $14,292 and $236,535 for the six months ended June 30, 2016 and 2015.

 

During the three and six months ended June 30, 2016, 8,933 shares of common stock were issued upon cashless exercise of 36,000 options.