Stockholders' Equity

12 Months Ended

Dec. 31, 2016

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Note 12

Stockholders’ Equity:

Preferred Stock

The Company has authorized preferred stock consisting of 5,000,000 shares with a $.01 par value, which shall be designated as blank check preferred. The Board of Directors may authorize the issuance from time to time of one or more classes of preferred stock with one or more series within any class thereof, with such voting powers, full or limited, or without voting powers and with such designations, preferences and relative, participating, optional or special rights and qualifications, limitations or restrictions thereon as shall be set forth in the resolution or resolutions adopted by the Board of Directors providing for the issuance of such preferred shares. At December 31, 2016 and 2015, no shares of preferred stock were issued or outstanding.

Common Stock Options

The Company has a Non-Employee Director Stock Option Plan. This plan has authorized 74,000 shares; of which 2,135 shares had been issued or were reserved for issuance as awards of shares of common stock, and 12,079 shares were reserved for outstanding stock options. The number of shares available for future issuance pursuant to this plan is 71,364.

In addition, the Company has a 2005 Equity Compensation Plan (“2005 Equity Plan”). The 2005 Equity Plan has authorized 1,200,000 shares, of which 519,078 shares had been issued or were reserved for issuance as awards of shares of common stock, and 133,649 shares were reserved for outstanding options. The number of shares available for future issuance pursuant to this plan is 547,273.

A summary of option transactions for all of the Company’s equity plans during the years ended December 31, 2016 and 2015 follows:

	Number of Stock Options			Weighted Average Exercise Price
Outstanding at December 31, 2014		231,941			81.15
Granted		-			-
Exercised		-			-
Expired/cancelled		(81,803	)		74.27
Outstanding at December 31, 2015		150,138		$	67.99
Granted		-			-
Exercised		-			-
Expired/cancelled		(15,988	)		82.26
Outstanding at December 31, 2016		134,150		$	85.22
Exercisable at December 31, 2016		109,066		$	84.40

The outstanding and exercisable options at December 31, 2016, have a range of exercise prices and associated weighted remaining contractual life and weighted average exercise price, as follows:

Options Range of Exercise Prices	Outstanding Number of Shares		Weighted Average Remaining Contractual Life (years)		Weighted Average Exercise Price		Exercisable Number of Shares		Exercisable Weighted Avg. Exercise Price
$0      -   $37.50		2,168		2.54	$	30.78		2,168	$	30.78
$37.51 - $75.00		57,145		5.56	$	71.32		47,746	$	71.12
$75.01-$112.50		74,640		5.38	$	97.05		58,841	$	96.25
$112.51 - up		197		0.01	$	234.06		311	$	256.15
Total		134,150			$	85.22		109,066	$	84.40

The outstanding options will expire, as follows:

Year Ending	Number of Options		Weighted Average Exercise Price		Exercise Price
2017		197	$	234.06		$233.10 - $239.40
2018		-		-		-
2019		1,954	$	32.01		$31.20 - $44.40
2020		534	$	32.81		$28.50 - $40.00
2021 and later		131,465	$	86.00		$70.00 - $100.00
		134,150	$	85.22		$28.50 - $239.40

As the share price as of December 31, 2016 was $2.20, the aggregate intrinsic value for options outstanding and exercisable was nil.

The Company uses the Black-Scholes option-pricing model to estimate fair value of grants of stock options. There were no grants of stock options in 2016 and 2015.The Company calculates expected volatility for a share-based grant based on historic daily stock price observations of its common stock. For estimating the expected term of share-based grants the Company has adopted the simplified method. The Company has used historical data to estimate expected employee behaviors related to option exercises and forfeitures and included these expected forfeitures as a part of the estimate of expense as of the grant date.

With respect to grants of options, the risk-free rate of interest is based on the U.S. zero-coupon US Government bond rates appropriate for the expected term of the grant or award.

The Company has nonvested restricted stock, as follows:

	Share			Weighted Average Grant-Date Fair Value
Nonvested at December 31, 2014		167,040		$	21.60
Granted		299,000			9.25
Vested/cancelled		(207,468	)		17.75
Nonvested at December 31, 2015		258,572		$	10.55
Granted		-			-
Vested/cancelled		(129,361	)		10.04
Nonvested at December 31, 2016		129,250		$	11.07

On February 26, 2015, the Company issued 299,000 restricted stock units to a number of employees. The restricted shares have a purchase price of $0.01 per share and vest, and cease to be subject to the Company’s right of repurchase, over a four-year period. The Company determined the fair value of the awards to be the fair value of the Company’s common stock units on the date of issuance less the value paid for the award. The aggregate fair value of these restricted stock issued was $2,766.

On October 29, 2015, the Company issued 1,000 shares of common stock to a non-employee director for an aggregate fair value of $75.

Total stock-based compensation expense was as $1,969 and $6,309 for the years ended December 31, 2016 and 2015.

At December 31, 2016, there was $1,704 of total unrecognized compensation cost related to non-vested stock awards that based on their original vesting terms was expected to be recognized over a weighted-average period of 1.86 years. Following the completion of the transaction described in Note 18, such compensation will be accelerated.

Common Stock Warrants

As a result of the cash raise on December 12, 2014, the Company issued separately detachable warrants to the shareholders participating in the raise at 0.50 per share acquired. The warrants have the following principal terms: (i) a warrant exercise price of $2.25 per share of common stock, (ii) an exercise period of December 12, 2015 through December 12, 2017. The underlying warrants were registered via registration statement. The adjusted warrant exercise price after the reverse stock split is $11.25 per share of common stock.

A summary of warrant transactions for the years ended December 31, 2016and 2015 follows:

	Number of Warrants		Weighted Average Exercise Price
Outstanding at December 31, 2014		70,950		18.05
Issued		-		-
Exercised		-		-
Expired/cancelled		6,450		85.95
Outstanding at December 31, 2015		64,500		11.25
Issued		-		-
Exercised		-		-
Expired/cancelled		-		-
Outstanding at December 31, 2016		64,500	$	11.25

At December 31, 2016, all outstanding warrants are exercisable. As the share price as of December 31, 2016 was $2.20, the aggregate intrinsic value for warrants outstanding and exercisable was nil.

If not previously exercised, the outstanding warrants will expire as follows:

Year Ending December 31,	Number of Warrants		Weighted Average Exercise Price
2017		64,500		11.25
		64,500	$	11.25