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Share-Based Payment Arrangements (Tables)
12 Months Ended
Dec. 31, 2016
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, 2016
Name of Plan
 
Shares
Authorized
 
Shares Available
for Grant
 
Shares
Outstanding
 
Last Date for Grant
of Shares
FalconStor Software, Inc., 2016 Incentive Stock Plan
 
2,166,606
 
1,779,170
 
220,000
 
April 27, 2026
FalconStor Software, Inc., 2016 Outside Directors Equity Compensation Plan
 
400,000
 
380,000
 
20,000
 
April 27, 2019
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, 2016:
Name of Plan
 
Shares Available for Grant
 
Shares Outstanding
FalconStor Software, Inc., 2006 Incentive Stock Plan
 
 
5,060,590
FalconStor Software, Inc., 2013 Outside Directors Equity Compensation Plan
 
 
20,200
FalconStor Software, Inc., 2007 Outside Directors Equity Compensation Plan
 
 
160,000
FalconStor Software, Inc., 2000 Stock Option Plan
 
 
147,500
Schedule of Stock Option Activity
A summary of the Company’s stock option activity for 2016 is as follows: 

 
Number of
Options
 
Weighted
Average
Price
 
Weighted
Average
Remaining
Contractual
Life (Years)
 
Aggregate
Intrinsic
Value
Options Outstanding at December 31, 2015
 
4,855,941

 
$
3.53

 
4.76
 
$
632,581

Granted
 
870,000

 
$
1.27

 
 
 
 
Exercised
 

 
$

 
 
 
 
Forfeited
 
(1,714,120
)
 
$
2.65

 
 
 
 
Expired
 
(520,331
)
 
$
5.05

 
 
 
 
Options Outstanding at December 31, 2016
 
3,491,490

 
$
3.18

 
4.83
 
$

Options Exercisable at December 31, 2016
 
2,671,990

 
$
3.77

 
3.47
 
$

Options Expected to Vest after December 31, 2016 (1)
 
573,650

 
$
1.25

 
9.29
 
$

(1) Options expected to vest after December 31, 2016 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,
 
 
2016
 
2015
Cost of revenue - Product
 
$

 
$

Cost of revenue - Support and Service
 
80,903

 
98,776

Research and development costs
 
1,653,336

 
806,348

Selling and marketing
 
241,481

 
285,787

General and administrative
 
352,498

 
738,466

 
 
$
2,328,218

 
$
1,929,377

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,
 
 
2016
 
2015
Directors, officers and employees
 
$
598,549

 
$
827,055

Non-employee consultants
 
96,237

 

 
 
$
694,786

 
$
827,055

Schedule of Restricted Stock Units Activity
A summary of the Company’s restricted stock activity for 2016 is as follows: 
 
 
Number of Restricted Stock Awards
Non-Vested at December 31, 2015
 
3,116,400

Granted
 
737,436

Vested
 
(565,511
)
Forfeited
 
(1,151,525
)
Non-Vested at December 31, 2016
 
2,136,800

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,
 
 
2016
 
2015
Non-qualified stock options
 
$
(5,915
)
 
$
73,539

Restricted stock awards
 
96,237

 

 
 
$
90,322

 
$
73,539

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,
 
 
2016
 
2015
Expected dividend yield
 
0%
 
0%
Expected volatility
 
55%
 
55 - 56%
Risk-free interest rate
 
1.29 - 1.36%
 
1.35 - 1.67%
Expected term (years)
 
5.5
 
5.5
Discount for post-vesting restrictions
 
N/A
 
N/A