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Share-Based Payment Arrangements (Tables)
12 Months Ended
Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Details of Stock Option Plan
The following table summarizes the plans under which the Company granted equity compensation as of December 31, 2015
Name of Plan
 
Shares
Authorized
 
Shares Available
for Grant
 
Shares
Outstanding
 
Last Date for Grant
of Shares
FalconStor Software, Inc., 2006 Incentive Stock Plan
 
13,455,546
 
2,914,559
 
7,310,270
 
May 17, 2016
FalconStor Software, Inc., 2013 Outside Directors Equity Compensation Plan
 
400,000
 
210,000
 
133,900
 
May 9, 2016
Schedule of Equity Awards Outstanding
The following table summarizes the Company’s equity plans that have expired but that still have equity awards outstanding as of December 31, 2015:
Name of Plan
 
Shares Available for Grant
 
Shares Outstanding
 
 
 
 
 
FalconStor Software, Inc., 2000 Stock Option Plan
 
 
328,171
 
 
 
 
 
2004 Outside Directors Stock Option Plan
 
 
40,000
 
 
 
 
 
FalconStor Software, Inc., 2007 Outside Directors Equity Compensation Plan
 
 
160,000
Schedule of Stock Option Activity
A summary of the Company’s stock option activity for 2015 is as follows: 

 
Number of
Options
 
Weighted
Average
Price
 
Weighted
Average
Remaining
Contractual
Life (Years)
 
Aggregate
Intrinsic
Value
Options Outstanding at December 31, 2014
 
5,466,936

 
$
3.93

 
5.51
 
$
7,350

Granted
 
340,000

 
$
1.81

 
 
 
 
Exercised
 
(43,560
)
 
$
1.36

 
 
 
 
Forfeited
 
(666,185
)
 
$
5.00

 
 
 
 
Expired
 
(241,250
)
 
$
6.50

 
 
 
 
Options Outstanding at December 31, 2015
 
4,855,941

 
$
3.53

 
4.76
 
$
632,581

Options Exercisable at December 31, 2015
 
4,046,871

 
$
3.92

 
4.13
 
$
374,972

Options Expected to Vest after December 31, 2015 (1)
 
566,349

 
$
1.60

 
7.88
 
$
180,326

(1) Options expected to vest after December 31, 2015 reflect an estimated forfeiture rate
 
 

Schedule of Share Based Compensation Recognized
The Company recognized share-based compensation expense for all awards issued under the Company’s stock equity plans in the following line items in the consolidated statement of operations:
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
Cost of revenue - Product
 
$

 
$

 
$
181

Cost of revenue - Support and Service
 
98,776

 
91,197

 
136,975

Research and development costs
 
806,348

 
282,416

 
363,296

Selling and marketing
 
285,787

 
327,694

 
397,967

General and administrative
 
738,466

 
764,876

 
807,010

 
 
$
1,929,377

 
$
1,466,183

 
$
1,705,429

Stock Based Compensation Expense - Restricted Stock
A summary of the total stock-based compensation expense related to restricted stock awards and restricted stock units, which is included in the Company’s total share-based compensation expense for each respective year, is as follows: 
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
Directors, officers and employees
 
$
827,055

 
$
602,889

 
$
257,843

Non-employee consultants
 

 

 

 
 
$
827,055

 
$
602,889

 
$
257,843

Schedule of Restricted Stock Units Activity
A summary of the Company’s restricted stock activity for 2015 is as follows: 
 
 
Number of Restricted Stock Awards
Non-Vested at December 31, 2014
 
2,333,357

Granted
 
1,493,555

Vested
 
(310,155
)
Forfeited
 
(400,357
)
Non-Vested at December 31, 2015
 
3,116,400

Schedule of Share-based Compensation, Nonemployee
A summary of the total stock-based compensation expense related to share-based awards granted to non-employee consultants, which is included in the Company’s total share-based compensation expense for each respective period, is as follows: 
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
Non-qualified stock options
 
$
73,539

 
$
1,173

 
$
37,379

Restricted stock awards
 

 

 

 
 
$
73,539

 
$
1,173

 
$
37,379

Schedule of assumptions used to value share-based compensation
In addition to the exercise and grant date prices of the awards, certain weighted average assumptions that were used to estimate the fair value of share-based payment grants in the respective periods are listed in the table below: 
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
Expected dividend yield
 
0%
 
0%
 
0%
Expected volatility
 
55 - 56%
 
55 - 57%
 
61 - 64%
Risk-free interest rate
 
1.35 - 1.67%
 
1.20 - 1.84%
 
0.84 - 1.64%
Expected term (years)
 
5.5
 
3.4 - 5.5
 
5.5
Discount for post-vesting restrictions
 
N/A
 
N/A
 
N/A