Stockholders' Equity

3 Months Ended

Mar. 31, 2016

Stockholders' Equity Note [Abstract]

Stockholders' Equity

6. Stockholders’ Equity

Stock Options - In March 2016, three of the Company’s senior management voluntarily cancelled an aggregate of 1,200,000 options to purchase shares of the Company’s common stock with exercise prices of $3.00 per share, of which 166,667 of the options were unvested on the date of cancellation.

Stock-Based Payments and Compensation - The Company records stock-based payment expense related to options and warrants based on the grant date fair value in accordance with FASB ASC 718. Stock-based compensation includes expense charges for all stock-based awards to employees, directors and consultants. Such awards include option grants, warrant grants, and restricted stock awards. During the three months ended March 31, 2016, the Company had stock compensation expense of approximately $74,000 or less than $0.01 basic and diluted earnings per share ($325,000; $0.01 basic and diluted earnings per share for the corresponding three months ended March 31, 2015).

As of March 31, 2016, there was $536,000 of potential stock based compensation for stock options that vest upon the occurrence of certain events which the Company does not believe are likely.