Quarterly report pursuant to Section 13 or 15(d)

Stock Options and Grants

v2.4.0.8
Stock Options and Grants
3 Months Ended
Mar. 31, 2014
Stock Options and Grants [Abstract]  
Stock Options and Grants
10.        Stock Options and Grants
 
2011 Plan –On July 27, 2011, in connection with the Merger, the Company obtained the written consent of holders of a majority of its outstanding common stock approving the 2011 Incentive Stock Plan (the “2011 Plan”). The 2011 Plan covers up to 8,000,000 shares of common stock, and all officers, directors, employees, consultants and advisors are eligible to be granted awards under the 2011 Plan. An incentive stock option may be granted under the 2011 Plan only to a person who, at the time of the grant, is an employee of the Company or its subsidiaries. The 2011 Plan expires on July 26, 2021, and is administered by the Company’s board of directors. As of March 31, 2014, there were 3,928 shares of common stock available for issuance under the 2011 Plan.
 
During 2012, the Company’s board of directors approved the issuance of up to an additional 2,000,000 shares of the Company’s common stock in the form of restricted stock or options. These options generally have the same terms and conditions as those provided under the 2011 Plan, however, the authorization of these options is not subject to shareholder approval. The issuance of these options will be approved by the Company’s board of directors on a case-by-case basis.  As of March 31, 2014, there were 66,071 shares of common stock available for issuance under this approval.
 
2013 Plan – During November 2013, the Company’s board of directors approved the issuance of up to 2,000,000 shares of the Company’s Common Stock in the form of restricted stock or options (“2013 Stock Plan”). The options granted under the 2013 Stock Plan have generally the same terms and conditions as those provided under the 2011 Plan. The Stock Plan is administrated by the Company’s board of directors. As of March 31, 2014, there were 1,600,000 shares of common stock available for issuance under the 2013 Stock Plan.
 
A summary of stock option activity as of March 31, 2014 and changes during the three months then ended are presented below:
 
269,075
   
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, 2013
   
10,330,001
   
$
0.10
   
$
0.36
   
8.16
   
109,050
 
Granted
   
-
     
-
     
-
             
Exercised
   
50,000
     
0.09
     
0.20
             
Cancelled
   
-
     
-
     
-
             
Outstanding – March 31, 2014
   
10,280,001
   
$
0.11
   
$
0.38
     
7.92
   
$
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable – December 31, 2013
   
8,416,668
   
$
0.10
   
$
0.32
     
8.05
   
$
107,517
 
Exercisable – March 31, 2014
   
9,347,501
   
$
0.11
   
$
0.36
     
7.82
   
$
266,608
 
 
For the three months ended March 31, 2014, the Company recognized stock-based compensation expense of $30,695, which is included in payroll and related expenses in the accompanying condensed consolidated statements of operations.
 
As of March 31, 2014, there was $66,663 of total unrecognized compensation costs related to non-vested stock options, which will be expensed over a weighted average period of 0.81 years. The intrinsic value is calculated as the difference between the fair value as of the balance sheet date and the exercise price of each of the outstanding stock options. The fair value at March, 31 2014 and December 31, 2013 was $0.25 and $0.22 per share, respectively, as determined by using a weighted value between the income approach method and the weighted average bulletin board price.