Shareholders' Equity

9 Months Ended

Sep. 30, 2015

Shareholders' Equity [Abstract]

Shareholders' Equity

11. SHAREHOLDERS’ EQUITY

Common Stock

The Company had common stock, $0.001 par value per share, outstanding of 8,530,962 and 7,405,962 shares as of September 30, 2015 and December 31, 2014, respectively. In September 2015, the Company completed a public offering and issued 1,125,000 shares of its common stock at a gross sales price of $4.00 per share, resulting in $3.9 million in net proceeds after deducting the underwriting discount and costs directly attributable to the offering. Subsequent to the end of the third quarter, on October 5, 2015, the underwriters exercised their over-allotment option to purchase and additional 168,750 shares from the Company at the public offering price of $4.00 per share, resulting in an additional $0.6 million in net proceeds after deducting the underwriting discount.

Warrants

As of September 30, 2015, the Company had warrants outstanding to purchase 50,600 shares of common stock at an exercise price of $7.00 per share. These warrants are scheduled to expire on September 18, 2018 unless exercised earlier. No warrants were exercised during the nine months ended September 30, 2015.

Stock-Based Compensation

A summary of stock option activity under the 2011 Long-Term Incentive Plan as of September 30, 2015, and changes during the nine months ended September 30, 2015, are presented below:

	Stock Options	Weighted average exercise price		Weighted average remaining contractual term	Aggregate intrinsic value
Outstanding as of December 31, 2014	366,400	$	9.92	6.9	$	-
Granted	13,000		8.98	9.5		-
Exercised	-		-	-		-
Forfeited	(30,000)		-	-		-
Outstanding as of September 30, 2015	349,400	$	9.34	6.8	$	-
Exercisable as of September 30, 2015	250,068	$	9.46	6.2	$	-

As of September 30, 2015, there were 350,600 shares available for future grants under the Company’s 2011 Long-Term Incentive Plan.

Expense for stock-based compensation recorded for the three and nine months ended September 30, 2015 was approximately $57,000 and $174,000, respectively, as compared to $63,000 and $163,000 during the three and nine months ended September 30, 2014, respectively. At September 30, 2015, the Company had total stock-based compensation expense remaining to be recognized in the statement of operations of approximately $262,000.

Foreign Currency Translation

Foreign assets and liabilities are translated using the exchange rate in effect at the balance sheet date, and results of operations are translated using an average rate for the period. Translation adjustments are accumulated and reported as a component of accumulated other comprehensive income (loss). The Company had foreign currency translation adjustments resulting in an unrealized loss of $2.4 million for the nine months ended September 30, 2015, as compared to an unrealized loss of $1.0 million for the nine months ended September 30, 2014.