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STOCK BASED COMPENSATION | 3 Months Ended
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Sep. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
STOCK BASED COMPENSATION | 5. STOCK BASED COMPENSATION Restricted Shares of Common Stock During the nine months ended September 30, 2012, the Company issued 540,000 restricted share grants to consultants as compensation for services. A summary of the activity of restricted shares of common stock for the nine months ended September 30, 2012 is as follows:
|  | Shares for Services |
|  | Shares |  |  | Weighted Average Grant Date Fair Value |
Nonvested on Dec 31, 2011 |  |  | - |  |  | $ | - |
Granted (unaudited) |  |  | 540,000 |  |  |  | 0.61 |
Vested (unaudited) |  |  | (415,000 | ) |  |  | 0.66 |
Forfeited (unaudited) |  |  | - |  |  |  | - |
Nonvested on September 30, 2012 (unaudited) |  |  | 125,000 |  |  | $ | 0.47 |
The Company recognized $485,391 and $354,779 in stock compensation expense related to restricted share grants and is included in selling, general and administrative expenses in the consolidated statement of operations for the nine months ended September 30, 2012, and 2011, respectively. As of September 30, 2012, there was no unrecognized compensation cost related to restricted share awards. Stock Warrants Historically, the Company issued warrants to purchase common stock to employees and consultants as compensation for services. The Company did not issue warrants to purchase common stock during the nine month period ended September, 2012. The Company amortizes the fair value of the stock warrants to expense ratably over the related service period. The following table summarizes the warrants outstanding and the number of shares of common stock subject to exercise as of September 30, 2012 and the changes therein during the nine months there ended:
|  | Employees |  |  | Services |
|  | Shares |  |  | Weighted Average Exercise Price |  |  | Shares |  |  | Weighted Average Exercise Price |
Outstanding and Exercisable at December 31, 2011 |  |  | - |  |  | $ | - |  |  |  | 250,000 |  |  | $ | 1.69 |
Warrants granted (unaudited) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Warrants exercised (unaudited) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Warrants expired/cancelled (unaudited) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Outstanding and Exercisable at September 30, 2012 (unaudited) |  |  | - |  |  | $ | - |  |  |  | 250,000 |  |  | $ | 1.69 |
The following table summarizes information about stock warrants outstanding and exercisable as of September 30, 2012:
|  | Outstanding |  |  | Exercisable |
Range of Exercise Price |  | Number of Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Life (Years) |  |  | Number of Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Life (Years) |
$1.52 -$1.80 |  |  | 250,000 |  |  | $ | 1.69 |  |  |  | 3.73 |  |  |  | 250,000 |  |  | $ | 1.69 |  |  |  | 3.73 |
Stock compensation expense related to stock warrants for the nine months ended September 30, 2012 and 2011 was $27,475 and $18,320, respectively. As of September 30, 2012, there was no unrecognized compensation cost related to stock warrant awards. Stock Options In May 2012, we adopted the Assured Pharmacy, Inc. 2012 Incentive Compensation Plan (the “2012 Incentive Plan”). The 2012 Incentive Plan is intended to provide incentives that will attract and retain the best available directors, employees and appropriate third parties who can provide us with valuable services. These purposes may be achieved through the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock awards, performance stock awards and phantom stock awards. The 2012 Incentive Plan permits the grant of awards that may deliver up to an aggregate of 1,667,667 shares of common stock, further subject to limits on the number of shares that may be delivered pursuant to incentive stock options, on the shares that may be delivered on the awards to any individual in a single year and on the number of shares that may be delivered on certain awards that are performance-based awards, within the meaning of Section 162(m) of the Internal Revenue Code. Awards may vest, in time, upon the occurrence of one or more events or by the satisfaction of performance criteria, or any combination. To the extent that awards are performance based, they may be based on one or more criteria, including (without limitation) earnings, cash flow, revenues, operating income, capital reissues, or other quantifiable company, customer satisfaction or market data, or any combination. In addition to common stock, awards may also be made in similar securities whose value is derived from our common stock. Awards with respect to which grant, vesting, exercisability or payment depend on the achievement of performance goals and awards that are options or stock appreciation rights granted to officers and employees will be intended to satisfy the requirements for “performance-based compensation” under Section 162(m) of the Internal Revenue Code. The 2012 Incentive Plan will be administered by the board of directors. In May 2012, the Company awarded 525,000 options to purchase common stock under the 2012 Incentive Compensation Plan. The following table summarizes the stock options outstanding and the number of shares of common stock subject to exercise as of September 30, 2012 and the changes therein during the nine months then ended:
|  | Employees |
|  | Options Outstanding |  |  | Options Exercisable |
|  | Shares |  |  | Weighted Average Exercise Price |  |  | Shares |  |  | Weighted Average Exercise Price |
Outstanding at December 31, 2011 |  |  | 1,315,556 |  |  | $ | 0.69 |  |  |  | 787,778 |  |  | $ | 0.69 |
Options granted (unaudited) |  |  | 525,000 |  |  |  | 0.60 |  |  |  | 525,000 |  |  |  | 0.60 |
Options vested (unaudited) |  |  | - |  |  |  | - |  |  |  | 165,926 |  |  |  | 0.68 |
Options exercised (unaudited) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Options expired/cancelled (unaudited) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Outstanding at September 30, 2012 (unaudited) |  |  | 1,840,556 |  |  | $ | 0.66 |  |  |  | 1,478,704 |  |  | $ | 0.66 |
The following table summarizes information about stock options outstanding and exercisable as of September 30, 2012:
|  | Outstanding |  |  | Exercisable |
Exercise Price |  | Stock Options Outstanding |  |  | Weighted Average Exercise Price Per Share |  |  | Weighted Average Remaining Contractual Term in Years |  |  | Stock Options Exercisable |  |  | Weighted Average Exercise Price Per Share |  |  | Weighted Average Remaining Contractual Term in Years |
$ 0.60 |  |  | 525,000 |  |  | $ | 0.60 |  |  |  | 9.61 |  |  |  | 525,000 |  |  | $ | 0.60 |  |  |  | 9.61 |
$ 0.68 |  |  | 1,305,556 |  |  | $ | 0.68 |  |  |  | 8.50 |  |  |  | 953,704 |  |  | $ | 0.68 |  |  |  | 8.50 |
$ 1.26 |  |  | 10,000 |  |  | $ | 1.26 |  |  |  | 7.45 |  |  |  | 10,000 |  |  | $ | 1.26 |  |  |  | 7.45 |
The Company recorded $295,785 and $0 in stock based compensation expense related to stock options for the nine months ended September 30, 2012 and 2011. The Company has reserved at total of 2,090,556 shares of its common stock for incentive stock option and warrant awards outstanding to employees and consultants. The Company does not expect to repurchase shares during the year 2012.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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