Equity Incentive Plan
|9 Months Ended|
Sep. 30, 2015
|Disclosure of Compensation Related Costs, Share-based Payments [Abstract]|
|Disclosure of Compensation Related Costs, Share-based Payments [Text Block]||
Note 10 Equity Incentive Plan
On May 17, 2013, the Company adopted the 2013 Equity Incentive Plan (the “Plan”) and reserved shares of common stock for issuance under the Plan not to exceed a maximum of 839,983 shares. The Plan is administered by the Compensation Committee of the Company’s Board of Directors. The persons eligible to participate in the Plan are employees (including officers), members of the Board of Directors, consultants and other independent advisors and contractors who provide services to the Company. Options issued under the Plan may have a term of up to ten years and may have variable vesting. The typical vesting schedule for stock options awarded under the Plan is a four year annual vesting schedule for employees and a one year quarterly vesting schedule for Board members.
On May 26, 2015, the stockholders approved an amendment to the Plan which increased shares available for issuance under the Plan by 1,250,000 shares. At September 30, 2015, there were 855,465 shares of common stock available for issuance under the Plan.
On August 27, 2015, the Compensation Committee approved a restatement of the Plan in order to clarify the types of awards allowable under the plan to include restricted stock units and performance stock units.
On August 15, 2015, the Company granted an employee 10,000 shares of restricted stock. The fair value of the restricted stock was $77,700 based on the closing market price of the Company’s stock on the date of grant, which will be recognized ratably over the four-year vesting period. Stock compensation expense of $2,428 related to this grant was recognized during the nine months ended September 30, 2015. Shares outstanding at September 30, 2015 include the 10,000 shares of unvested restricted stock.
On September 10, 2015, the Company granted an employee 96,000 performance share units (PSUs), which are subject to the satisfaction of certain market-based and continued service conditions. The market-based vesting criteria are separated into four tranches and require that the Company achieve certain stock price targets ranging from $9 per share to $15 per share during the four-year period following the grant date. With certain limited exceptions, continued employment with the Company on the fourth anniversary of the grant date is required in order for the PSUs to vest. The grant-date fair value of the PSUs was $405,997, or $4.23 per unit, using a Monte Carlo Simulation with a four-year life, 60% volatility and a risk free interest rate of 1.3%.The fair value of the PSUs is being recognized over the vesting period and $5,639 was recognized during the nine months ended September 30, 2015.
During the nine months ended September 30, 2015, the Company granted 38,502 stock options to Board members and 148,400 stock options to employees. The estimated fair value of stock options granted under the Plan in the nine months ended September 30, 2015, calculated using the Black-Scholes option valuation model, was $814,504, of which $151,701 was recognized during the nine months ended September 30, 2015.
During the nine months ended September 30, 2015, 65,203 options to purchase shares of the Company’s common stock were exercised. The Company issued 56,536 shares of common stock and 8,667 options were cancelled to satisfy the exercise price of options exercised on a cashless basis. Net proceeds received from option exercises were $183,892 during the nine months ended September 30, 2015.
A summary of the Company’s stock option activity and related information is as follows:
At September 30, 2015, there was $3,308,041 of unrecognized compensation cost related to non-vested stock options granted under the Plan. That cost is expected to be recognized over a weighted average period of 2.8 years.
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.
Reference 1: http://www.xbrl.org/2003/role/presentationRef