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11. STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 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 of 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 June 30, 2017, the number of shares of the Company’s common stock available for issuance under the Plan is 7,325,989.

 

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.

 

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 and six-month periods ended June 30, 2017, $9,000 was recognized as general and administrative expenses.

 

On May 7, 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 $1.90 per share and the options vested immediately. The options were valued at $5,700 fair value, with assumed 45.71% volatility, a three-year expiration term with an expected tenor of 1.70 years, a risk free rate of 1.25% and no dividend yield. For the three-month and six-month period ended June 30, 2017, $5,700 was recognized as general and administrative expenses.

 

The following table summarizes all Company stock option transactions between January 1, 2017 and June 30, 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 June 30, 2017

       25,000     $ 1.94       $1.90-1.98  

Expired during the period ended 

June 30, 2017 

       (37,500 )   $ 2.18       $1.83-2.55  
Balance, June 30, 2017       172,500     $ 2.16       $1.54 - $4.80  

     

 

    Stock and Warrants Options Exercisable and Outstanding
            Weighted Average  
            Remaining  
    Outstanding at June 30, 2017  

Range of

Exercise Prices 

  

Contractual Life

 (Years)

  
Exercisable and outstanding   172,500   $1.54 - $4.80   1.89  

 

The aggregate intrinsic value of options outstanding and exercisable as of June 30, 2017 was $625.