STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2015

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

STOCK-BASED COMPENSATION

Total stock-based compensation expense for the three months ended September 30, 2015 and 2014 was $(61) and $3,564, respectively. During the three months ended September 30, 2015, the Company’s stock-based compensation expense was comprised of $1,173, net of $1,234 for the reversal of previously recorded stock-based compensation expense due to unvested forfeitures related to terminated employees. Total stock-based compensation expense for the nine months ended September 30, 2015 and 2014 was approximately $12,235 and $3,705, 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 nine months ended September 30, 2015:

				Weighted Average
	Number of			Exercise		Remaining
	Shares			Price		Life
Outstanding, beginning of period		540,000		$	26.10		3.8
Granted		32,196,317			0.60		9.5
Canceled		(1,373,334	)		0.87		9.3
Outstanding, end of period		31,362,983		$	1.02		9.4
Vested, end of period		20,381,935		$	1.28		9.3

The weighted average fair value for the 32,196,317 stock options granted for the nine months ended September 30, 2015 was $0.49 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 1.48%, an average forfeiture rate of 8.0%, and weighted average historical volatility of 139.0%.

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 September 30, 2015, unrecognized stock compensation expense amounted to $3,304 which will be charged to expense over the remaining vesting periods of the options. As of September 30, 2015, none of the outstanding stock options had intrinsic value.

The following table summarizes information about stock options outstanding as of September 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	$	0.40	$	0.38		9.6		13,015,748	$	0.38		7,185,532
	0.71		0.79		0.74		9.5		17,847,234		0.74		12,696,402
	3.75		3.75		3.75		2.8		346,667		3.75		346,667
	77.25		135.75		82.34		3.7		153,334		82.34		153,334
$	0.31	$	135.75	$	1.02		9.4		31,362,983	$	1.28		20,381,935

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 nine months ended September 30, 2015:

	Number			Weighted Average
	of			Fair Value		Vesting
	Shares			Per Share		Period
Unvested, beginning of period		66,667		$	5.85		1.3
Granted		2,963,665			0.65		3.3
Forfeited		(77,777	)		3.66		2.5
Vested		(22,223	)		5.85		0.8
Unvested, end of period		2,930,332		$	0.65		3.3

Unrecognized stock compensation related to restricted stock amounted to approximately $1,531 as of September 30, 2015. The intrinsic value of unvested restricted stock was $791 as of September 30, 2015.