Quarterly report pursuant to Section 13 or 15(d)

Equity Incentive Plan

v3.5.0.2
Equity Incentive Plan
 9 Months Ended
Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
Note 9 — 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. The Plan is administered by the Compensation Committee of the Company’s Board of Directors. At September 30, 2016, 659,652 shares of common stock were available for issuance under the Plan.
 
During the nine months ended September 30, 2016, the Company granted 37,938 stock options to Board members and 50,100 stock options to employees under the Plan. The estimated fair value of these stock options, calculated using the Black-Scholes option valuation model, was $271,418, of which $117,661 was recognized during the nine months ended September 30, 2016.
 
During the nine months ended September 30, 2016, the Company also granted employees 119,000 performance stock units (“PSUs”) under the Plan, 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 $10 per share to $16 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 $429,293, or $3.61 per unit, using a Monte Carlo Simulation with a four-year life, 55% volatility and a risk free interest rate of 1.5%. The fair value of these PSUs is being recognized over the vesting period and $80,492 was recognized during the nine months ended September 30, 2016.
 
During the nine months ended September 30, 2016, 4,607 options to purchase shares of the Company’s common stock were exercised resulting in net proceeds of $23,035.
 
A summary of the Company’s stock option activity and related information is as follows:
  
 
 
 
 
 
 
Weighted
 
 
 
 
 
Weighted
 
Average
 
 
 
 
 
Average
 
Remaining
 
 
 
Stock
 
Exercise
 
Life
 
 
 
Options
 
Price
 
(in years)
 
Outstanding at December 31, 2015
 
 
1,332,323
 
$
6.94
 
 
8.4
 
Granted
 
 
88,038
 
$
6.01
 
 
 
 
Exercised
 
 
(4,607)
 
$
5.00
 
 
 
 
Forfeited/Expired/Exchanged
 
 
(35,075)
 
$
6.40
 
 
 
 
Outstanding at September 30, 2016
 
 
1,380,679
 
$
6.91
 
 
7.7
 
Exercisable at September 30, 2016
 
 
826,695
 
$
6.55
 
 
7.4
 
 
At September 30, 2016, there was $2,969,537 of unrecognized compensation cost related to non-vested equity awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 2.5 years.