STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2014

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

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

Stock-based compensation expense was $173,979 and $123,571 for the nine months ended September 30, 2014 and 2013, respectively, for options previously awarded by the Company.

Stock option activity for the nine months ended September 30, 2014 is summarized as follows:

	Shares		Weighted Average Exercise Price			Weighted Average Remaining Contractual Life (in Years)	Grant Date Fair Value
Outstanding at December 31, 2013	3,060,834		$	5.89		6.07	$	1,327,163
Options granted	250,000		7.91			9.80	501,893
Options forfeited/expired	(91,667	)	10.78			—	(29,335		)
Options exercised	(634,000	)	(0.87		)	—	(262,241		)
Outstanding at September 30, 2014	2,585,167		$	7.14		5.54	$	1,537,480
Vested at September 30, 2014	1,820,480		$	8.34		4.88	$	657,010
Exercisable at September 30, 2014	1,820,480		$	8.34		4.88	$	657,010

A summary of the Company’s stock warrant activity and related information for the nine months ended September 30, 2014 is as follows: 

	Shares		Weighted Average Exercise Price			Weighted Average Remaining Contractual Life (in Years)	Grant Date Fair Value
Outstanding at December 31, 2013	7,083		$	2.72		1.57	$	2,900
Warrants exercised	(6,250	)	(1.75		)	—	(2,800		)
Warrants cancelled/forfeited/expired	(833	)	(10.00		)	—	(100		)
Warrants at September 30, 2014	—		$	—		—	$	—
Vested at September 30, 2014	—		$	—		—	$	—
Exercisable at September 30, 2014	—		$	—		—	$	—

In April 2014, the Company granted two employees Incentive Stock Options to purchase an aggregate of 150,000 shares of the Company's common stock, which have a term of ten years, an exercise price of $7.55 per share and vest at the rate of 1/4th of such options per year on each of the first four anniversaries of the grant date.

In August, 2014, the Company granted one employee Incentive Stock Options to purchase an aggregate of 100,000 shares of the Company's common stock, which have a term of ten years, and exercise price of $8.44 per share and vest at the rate of 25,000 of such options on grant date and 18,750 on each of the first four anniversaries of the grant date.