STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

Total stock-based compensation expense for the three months ended June 30, 2015 and 2014 was approximately $2,418 and $44, respectively. Total stock-based compensation expense for the six months ended June 30, 2015 and 2014 was approximately $12,296 and $89, respectively.

Stock Options

The following table summarizes share activity, the weighted average exercise price, the weighted average remaining contractual life (in years) related to stock options outstanding during the six months ended June 30, 2015:

				Weighted Average
						Remaining
	Number of			Exercise		Contractual
	Shares			Price		Life
Outstanding, beginning of period		540,000		$	26.10		3.3
Granted		31,596,317			0.60		9.8
Canceled		(1,340,000	)		0.80		9.5
Outstanding, end of period		30,796,317		$	1.04		9.6
Vested, end of period		22,155,528		$	1.26		9.6

The weighted average fair value for the 31,596,317 stock options granted for the six months ended June 30, 2015 was $0.55 per share. In estimating the fair value of options, the Company used the Black-Scholes option-pricing model based upon the closing price of the Company’s stock on the date of grant, a weighted average expected life of 5.3 years, a weighted average risk free interest of 1.47%, an average forfeiture rate of 8.0%, and historical volatility of 140.0%.

Stock-based compensation expense is recognized over the vesting period of stock options and restricted stock awards. For a single award with a graded vesting schedule and only service conditions, the Company recognizes compensation cost on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was in substance multiple awards. For stock options granted through June 30, 2015, unrecognized stock compensation expense amounted to $4,200 which will be charged to expense over the remaining vesting periods of the options. As of June 30, 2015, none of the outstanding stock options had intrinsic value.

The following table summarizes information about stock options outstanding as of June 30, 2015:

Stock Options Outstanding										Vested Options
Exercise Prices						Remaining		Number		Weighted		Number
Range				Weighted		Contractual		of		Average		of
Low		High		Average		Term		Shares		Price		Shares
$	0.31	$	0.38	$	0.38		9.8		12,415,748	$	0.38		6,287,091
	0.71		0.79		0.74		9.7		17,847,234		0.75		15,335,102
	3.75		3.75		3.75		3.0		380,001		3.75		380,001
	77.25		135.75		82.34		4.0		153,334		82.34		153,334
$	0.38	$	135.75	$	1.05		9.6		30,796,317	$	1.23		22,155,528

Restricted Stock

The fair value of the restricted stock grants is based upon the closing price of the Company’s stock on the date of grant. The following table summarizes share activity, the weighted average fair value per share, and the weighted average vesting period (in years) related to restricted stock grants during the six months ended June 30, 2015:

				Weighted Average
	Number of			Fair Value		Original
	Shares			Per Share		Vesting Period
Unvested, beginning of period		66,667		$	5.85		1.3
Granted		2,963,665			0.65		3.3
Forfeited		(44,444	)		5.85		1.6
Vested during period		(22,223	)		5.85		0.8
Unvested, end of period		2,963,665		$	0.65		3.3

Unrecognized stock compensation related to restricted stock amounted to approximately $1,727 of June 30, 2015. The intrinsic value of unvested restricted stock was $859 as of June 30, 2015.