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Stock Options and Grants

9 Months Ended

Sep. 30, 2018

Stock Options and Grants [Abstract]

Stock Options and Grants

7.	Stock Options and Grants

Stock Options – A summary of stock option activity as of September 30, 2018 and changes during the nine 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 – September 30, 2018			1,138,392			$	1.24			$	4.03				8.65			$	570,521

Exercisable – December 31, 2017			738,608			$	1.22			$	4.04				9.19			$	1,435,515
Exercisable – September 30, 2018			890,602			$	1.23			$	4.01				8.53			$	489,401

For the three months ended September 30, 2018 and 2017, the Company recognized stock-based compensation expense of $85,325 and $439,821, respectively, related to stock options. For the nine months ended September 30, 2018 and 2017, the Company recognized stock-based compensation expense of $250,639 and $649,204, respectively, related to stock options. This expense is included in payroll and related expenses in the accompanying condensed consolidated statements of operations.

As of September 30, 2018, the Company had $277,934 of total unrecognized compensation costs related to non-vested stock options, which will be expensed over a weighted average period of 1.24 years. The intrinsic value is calculated as the difference between the fair value of the stock price at June 30, 2018 and the exercise price of each of the outstanding stock options. The fair value of the stock price at September 30, 2018 was $4.00 per share, based on the closing price of the Company’s stock as of September 28, 2018.

Restricted Stock Units – Effective July 26, 2018, a total of 27,955 of restricted stock units were granted to the Company's non-employee directors, under the Company's stock-based compensation plan, at the fair value of $5.21 per share, which represents the closing price of the Company's common stock on the date of grant. Restricted stock units granted to directors in 2018 vest on the earlier of (A) the first anniversary of the date of the grant or (B) the date of the annual meeting of the Company's stockholders that occurs in the year immediately following the date of the grant; and are payable six months after the termination of the director from the Board or death or disability. For the three and nine months ended September 30, 2018, the Company recognized stock-based compensation of $31,777 related to restricted stock units. This expense is included in the payroll and related expenses in the accompanying condensed consolidated statement of operations.