XML 28 R17.htm IDEA: XBRL DOCUMENT v3.7.0.1
11. STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
11. 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, 2017, the number of shares of the Company’s common stock available for issuance under the Plan is 7,338,489.

 

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 historical option exercise pattern.

 

On March 2, 2017, 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 $1.98 per share and the options vested immediately. The options were valued at $9,000 fair value, with assumed 57.42% volatility, a three-year expiration term, with an expected tenor of 1.69 years, a risk free rate of 1.59% and no dividend yield. For the three-month period ended March 31, 2017, $9,000 was recognized as general and administrative expenses.

 

The following table summarizes all Company stock option transactions between January 1, 2017 and March 31, 2017.

 

   

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, 2017   185,000     $2.19       $1.54 - $4.80  

Granted and vested during the period ended March 31, 2017

   12,500     $1.98       $1.98  

Expired during the period ended March 31, 2017

   (12,500 )   $2.55       $2.55  
Balance, March 31, 2017   185,000     $2.16       $1.54 - $4.80  

 

    Stock and Warrants Options Exercisable and Outstanding
            Weighted Average  
            Remaining  
    Outstanding at March 31, 2017  

Range of

Exercise Prices

  

Contractual Life

 (Years)

  

Exercisable and outstanding

   185,000   $1.54 - $4.80   1.81  

 

The aggregate intrinsic value of options outstanding and exercisable as of March 31, 2017 was $5,100.