Quarterly report pursuant to Section 13 or 15(d)

Stock-based compensation

v3.7.0.1
Stock-based compensation
 3 Months Ended
Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-based compensation
Stock-based compensation:
In October 2013, the board of directors approved the 2013 Employee, Director and Consultant Equity Incentive Plan (the “2013 Plan”) pursuant to which the Company may issue options, warrants, restricted stock or other stock-based awards to directors, officers, key employees and other key individuals performing services for the Company. The 2013 Plan has reserved 4,773,992 shares of common stock for issuance. All awards will be approved by the board of directors or a committee of the board of directors to be established for such purpose.
 
The Company’s outstanding stock options and restricted stock have maximum contractual terms of up to ten years, principally vest on a quarterly basis ratably over five years and are granted at exercise prices equal to the market price of the Company’s common stock on the date of grant. All equity awards immediately vest upon a liquidation or a change in control event. The Company’s outstanding stock options and restricted stock are exercisable into shares of the Company’s common stock. The Company measures the cost of employee services received in exchange for an award of equity instruments, including grants of employee stock options and restricted stock awards, based on the fair value of the award at the date of grant in accordance with the modified prospective method. The Company uses the Black-Scholes model for purposes of determining the fair value of stock options granted and recognizes compensation costs ratably over the requisite service period, net of estimated forfeitures. For restricted stock awards, the grant-date fair value is the quoted market price of the stock.

As of March 31, 2017, all 1,649,512 options and 708,750 shares of restricted stock outstanding, respectively, were excluded from the calculation of dilutive earnings per share as their effect would have been anti-dilutive as the exercise price of these grants are above the average market price.
  
For the three months ended March 31, 2017 and 2016, the Company recognized $153,339 and $143,967, respectively, of non-cash stock-based compensation expense related to options, restricted stock awards and unrestricted stock grants in general and administrative expense in the consolidated statements of operations.
 
As of March 31, 2017, there was approximately $1.8 million of total unrecognized compensation cost related to unvested share-based option compensation grants, which is expected to be amortized over a weighted-average period of 2.4 years.
   
A summary of the status of stock option awards and changes during the three months ended March 31, 2017 are presented below:

 
Shares
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Life (Years)
 
Intrinsic
Value
 
 
 
 
 
 
 
 
Outstanding at December 31, 2016
1,857,012

 
$
4.28

 
 
 
 
Granted
—

 
—

 
 
 
 
Cancelled, expired, or forfeited
207,500

 
$
3.43

 
 
 
 
Outstanding at March 31, 2017
1,649,512

 
$
4.39

 
7.69
 
$
—

Exercisable at March 31, 2017
873,341

 
$
4.69

 
6.76
 
$
—


  
The weighted-average grant-date fair value of option awards vested and non-vested during the three months ended March 31, 2017 was $1.65.

A summary of the status of restricted stock awards and changes during the three months ended March 31, 2017 are presented below:


 
Shares
 
Weighted Average
Grant Date Fair Value
 
 
 
 
Outstanding at December 31, 2016
716,250

 
$
2.73

Granted
—

 
—

Cancelled, expired, or forfeited
(7,500
)
 
$
2.73

Outstanding at March 31, 2017
708,750

 
$
2.73

 
 
 
 
Exercisable at March 31, 2017
—