STOCK BASED COMPENSATION

6 Months Ended

Jun. 30, 2015

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

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

NOTE 14: STOCK BASED COMPENSATION

Stock Options and Incentive Plan :

On September 28, 2010, the Board of Directors approved the adoption of the 2010 Stock Option and Incentive Plan, or the 2010 Plan, to provide for the grant of equity-based awards to employees, officers, non-employee directors and other key persons providing services to the Company. Awards of incentive options may be granted under the 2010 Plan until September 2020. No other awards may be granted under the 2010 Plan after the date that is 10 years from the date of stockholder approval. An aggregate of 1,000,000 shares were initially reserved for issuance in connection with awards granted under the 2010 Plan, such number of shares to be subject to adjustment as provided in the plan and in any award agreements entered into by the Company under the plan, and upon the exercise or conversion of any awards granted under the plan.

The following table presents the additions to the 2010 Plan since inception:

	Number of
January 1,	shares
2012		450,275
2013		516,774
2014		742,973
2015		983,362
Total additional shares		2,693,384

The Company granted options to purchase 845,822 shares of common stock from the 2010 Plan to employees and directors during the six months ended June 30, 2015. There are 666,466 options available for grant under the 2010 Plan as of June 30, 2015.

Compensation costs associated with the Company’s stock options are recognized, based on the grant-date fair values of these options, over the requisite service period, or vesting period. Accordingly, the Company recognized stock based compensation expense of $205,112 and $385,740 for the three months and six months ended June 30, 2015. The stock based compensation expense for the three months and six months ended 2014 was $167,534 and $397,715, respectively.

Stock-based compensation expense was included in the following captions in the condensed consolidated statements of operations for the periods shown:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Selling expenses	$	13,100	$	25,911	$	45,399	$	41,837
Research and development expenses		24,820		10,139		43,790		14,766
General and administrative expenses		167,192		131,484		296,551		341,112
	$	205,112	$	167,534	$	385,740	$	397,715

The following table presents information concerning stock option grants for the six months ended June 30, 2015:

				Executives &
	Employees			Officers
				January –
Date of Grant	January – June 2015			June 2015
Fair value of common stock on date of grant	$	1.19 – 1.59		$	1.21 – 1.59
Exercise price of the options	$	1.40 – 1.88		$	1.44 – 1.88
Expected life of the options (years)		6.03 – 6.13			6.06 – 6.11
Dividend yield		0.00	%		0.00	%
Expected volatility		110.8 – 115.0	%		111.3 – 113.5	%
Risk-free interest rate		1.64 – 1.79	%		1.72 – 1.74	%
Expected forfeiture per year (%)		10.00	%		10.00	%
Weighted average fair value of the options per unit	$	1.50		$	1.46

Options issued and outstanding as of June 30, 2015 and their activities during the six months then ended are as follows:

					Weighted-
						Average
			Weighted-			Contractual
			Average			Life
	Number of		Exercise			Remaining
	Underlying		Price Per			in		Aggregate
	Shares		Share			Years		Intrinsic Value
Outstanding as of January 1, 2015		3,675,634	$	2.86				$	344,000
Granted		1,145,822		1.71					-
Forfeited		(509,047)		2.06					63,223
Exercised		-		-					-
Outstanding as of June 30, 2015		4,312,409		2.65			8.03	$	39,400
Exercisable as of June 30, 2015		1,734,948		3.89			6.37	$	-
Vested and expected to vest (1)		3,929,771	$	2.74			7.90	$	33,255

⁽¹⁾ vested shares and unvested shares after a forfeiture rate is applied

As of June 30, 2015, there were 2,577,461 unvested options outstanding and the related unrecognized total compensation cost associated with these options was $2,057,210. This expense is expected to be recognized over a weighted average period of 3.16 years.