STOCK BASED COMPENSATION

3 Months Ended

Mar. 31, 2016

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

STOCK BASED COMPENSATION

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.

The following table presents the automatic additions to the 2010 Plan since inception pursuant to the “evergreen” terms of the 2010 Plan:

January 1,	Number of shares
2012		450,275
2013		516,774
2014		742,973
2015		983,362
2016		1,306,290
Total additional shares		3,999,674

The Company granted no additional options to purchase shares of common stock to employees and directors during the three months ended March 31, 2016 and no options were exercised during the three months ended March 31, 2016.  There are 2,827,954 options available for grant under the 2010 Plan as of March 31, 2016.

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 $192,457 and $148,869 for the three months ended March 31, 2016 and 2015, respectively.

Options issued and outstanding as of March 31, 2016 and their activities during the three months ended are as follows:

	Number of Underlying Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Contractual Life Remaining in Years		Aggregate Intrinsic Value
Outstanding as of January 1, 2016		3,613,944		$	2.40			$	-
Granted		-			-				-
Forfeited		(412,224	)		1.51				-
Outstanding as of  March 31, 2016		3,201,720			2.51		8.07	$	-
Exercisable as of  March 31, 2016		1,724,319			3.17		7.56	$	-
Vested and expected to vest (1)		3,044,186		$	2.56		8.02	$	-

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

At March 31, 2016, there were 1,477,401 unvested options outstanding and the related unrecognized total compensation cost associated with these options was $1,233,702. This expense is expected to be recognized over a weighted-average period of 2.43 years.