Stock Options and Grants

3 Months Ended

Mar. 31, 2018

8.	Stock Options and Grants

A summary of stock option activity as of March 31, 2018 and changes during the three months then ended are presented below. The table includes options granted to employees and directors of the Company and does not include 50,000 options granted to a consultant during 2017:

	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, 2017		888,392	$	1.23	$	3.86		9.15	$	1,881,869
Granted		250,000		1.28		4.61		-		-
Exercised		-		-		-		-		-
Cancelled		-		-		-		-		-
Outstanding – March 31, 2018		1,138,392	$	1.24	$	4.03		9.15	$	918,539

Exercisable – December 31, 2017		738,608	$	1.22	$	4.04		9.19	$	1,435,515
Exercisable – March 31, 2018		786,496	$	1.22	$	4.03		8.97	$	714,236

For the three months ended March 31, 2018 and 2017, the Company recognized stock-based compensation expense of $79,989 and $154,383, respectively. This expense is included in payroll and related expenses in the accompanying condensed consolidated statements of operations.

As of March 31, 2018, the Company had $448,582 of total unrecognized compensation costs related to non-vested stock options, which will be expensed over a weighted average period of 1.68 years. The intrinsic value is calculated as the difference between the fair value of the stock price at March 31, 2018 and the exercise price of each of the outstanding stock options. The fair value of the stock price at March 31, 2018 was $4.61 per share, based on the closing price of the Company’s stock as of March 29, 2018.

On March 30, 2018, Paul Galvin, Chief Executive Officer, Mahesh Shetty, President and Chief Financial Officer, and Stevan Armstrong, Chief Technology Officer, were granted options to purchase 82,154, 81,342 and 14,842 shares of the Company’s common stock, respectively. Three other employees received, in the aggregate, options to purchase 21,662 of the Company’s common stock. The foregoing options each have an exercise price of $4.61 and vest quarterly over a two-year period, beginning on March 31, 2018. Additionally, on March 30, 2018, two other employees received, in the aggregate, options to purchase 50,000 shares of the Company’s common stock, which have an exercise price of $4.61 and vest quarterly over a three-year period, beginning on June 30, 2018. The fair value of the options was calculated utilizing a Black-Scholes model and upon issuance amounted to $320,000.