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Stock Options and Grants
 3 Months Ended
Mar. 31, 2016
Stock Options and Grants [Abstract]  
Stock Options and Grants
9. Stock Options and Grants

 

A summary of stock option activity as of March 31, 2016 and changes during the nine months then ended are presented below:

 

    Shares     Weighted Average Fair Value Per Share     Weighted Average Exercise Price Per Share     Weighted Average Remaining Terms (in years)     Aggregate Intrinsic Value  
                                         
Outstanding - December 31, 2015     15,425,001     $ 0.07     $ 0.30       7.00             -  
Granted     -       -       -                  
Exercised     -       -       -                  
Cancelled     -       -       -                  
Outstanding – March 31, 2016     15,425,001     $ 0.07     $ 0.30       6.75     $ -  
                                         
Exercisable - December 31, 2015     13,729,168     $ 0.11     $ 0.31       6.80     $ -  
Exercisable – March 31, 2016     13,729,168     $ 0.11     $ 0.31       6.55     $ -  

 

For the three months March 31, 2016 and 2015, the Company recognized stock-based compensation expense of $46,898 and $48,115, respectively, which is included in payroll and related expenses in the accompanying condensed consolidated statements of operations.

 

As of March 31, 2016, there was $72,249 of total unrecognized compensation costs related to non-vested stock options, which will be expensed over a weighted average period of 0.39 years. The intrinsic value is calculated as the difference between the fair value as of the balance sheet date and the exercise price of each of the outstanding stock options. The fair value at March 31, 2016 and December 31, 2015 was $0 per share, as determined by the Market Approach. The Market Approach is based on the economic principle of competition and entails both the application of appropriate market-based multiples such as level of earnings, cash flow, revenues, invested capital or other financial factors that represent the company's future financial performance. This method is based on the idea of determination of the price at which the company will be exchanged in the public market. On October 15, 2015, the Company filed a voluntary petition for relief under Chapter 11 of Title 11 of the United States Bankruptcy Court for the Southern District of New York, accordingly the fair value of the stock was deemed to have a nominal value.