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STOCK BASED COMPENSATION
 9 Months Ended
Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
NOTE 15: 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 1,640,822 shares of common stock to employees and directors during the nine months ended September 30, 2015. There are 703,003 options available for grant under the 2010 Plan as of September 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 $317,986 and $703,726 for the three months and nine months ended September 30, 2015, respectively. The stock based compensation expense for the three months and nine months ended September 30, 2014 was $147,399 and $545,115, 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
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
 
 
2015
 
2014
 
2015
 
2014
 
Selling expenses
 
$
29,374
 
$
26,755
 
$
74,773
 
$
68,592
 
Research and development expenses
 
 
32,124
 
 
15,997
 
 
75,914
 
 
30,763
 
General and administrative expenses
 
 
256,488
 
 
104,647
 
 
553,039
 
 
445,759
 
 
 
$
317,986
 
$
147,399
 
$
703,726
 
$
545,114
 
 
The following table presents information concerning stock option grants for the nine months ended September 30, 2015:
 
 
 
 
 
 
Executives &
 
 
 
Employees
 
 
Officers
 
 
 
 
 
 
January –
 
Date of Grant
 
January – September 2015
 
 
September 2015
 
 
 
 
 
 
 
 
Fair value of common stock on date of grant
 
$
0.76 – 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
 
 
107.1 – 115.0
%
 
 
111.3 – 113.5
%
Risk-free interest rate
 
 
1.64 – 1.81
%
 
 
1.72 – 1.74
%
Expected forfeiture per year (%)
 
 
10.00
%
 
 
10.00
%
Weighted average fair value of the options per unit
 
$
0.82
 
 
$
1.46
 
 
Options issued and outstanding as of September 30, 2015 and their activities during the nine 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
 
1,640,822
 
 
1.53
 
 
 
 
-
 
Forfeited/canceled
 
(559,047)
 
 
2.01
 
 
 
 
63,223
 
Expired
 
(350,000)
 
 
 
 
 
 
 
 
 
Exercised
 
-
 
 
-
 
 
 
 
-
 
Outstanding as of September 30, 2015
 
4,407,409
 
 
2.31
 
8.6
 
$
500
 
Exercisable as of September 30, 2015
 
1,618,524
 
 
3.38
 
7.9
 
$
-
 
Vested and expected to vest (1)
 
4,047,912
 
$
2.37
 
8.6
 
$
406
 
 
(1) vested shares and unvested shares after a forfeiture rate is applied
 
As of September 30, 2015, there were 2,788,885 unvested options outstanding and the related unrecognized total compensation cost associated with these options was $2,250,594. This expense is expected to be recognized over a weighted average period of 2.85 years.