NOTE 11 — STOCK-BASED COMPENSATION

In June 2015, the Company granted to employees, directors and certain consultants options to purchase an aggregate of 2,502,500 shares of the Company’s common stock at an exercise price of $1.67 per share under the Company’s 2013 Incentive Compensation Plan. The options, which expire in June 2025, vest 25% on each of the first four anniversaries of the grant date. The Company has valued the options at $2,752,750 using the Black-Scholes option pricing model.

Stock-based compensation expense for the three months ended June 30, 2015 and 2014 amounted to $239,940 and $191,456, respectively. At June 30, 2015, total unrecognized compensation cost amounted to $4,121,329, representing 5,644,750 unvested options. This cost is expected to be recognized over a weighted-average vesting period of 3.03 years. There were 50,000 options exercised during the three months ended June 30, 2015 and 230,033 options exercised during the three months ended June 30, 2014. The Company did not recognize any related tax benefit for the three months ended June 30, 2015 and 2014 from option exercises, as the effects were de minimis.