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Share-Based Payment Arrangements (Tables)
12 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Details of Stock Option Plan
Name of Plan
 
Shares
Authorized
 
Shares Available
for Grant
 
Shares
Outstanding
 
Last Date for Grant
of Shares
FalconStor Software, Inc., 2016 Incentive Stock Plan
 
4,247,686
 
3,191,300
 
535,000
 
April 27, 2026
FalconStor Software, Inc., 2016 Outside Directors Equity Compensation Plan
 
1,000,000
 
583,532
 
409,868
 
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, 2017:
Name of Plan
 
Shares Available for Grant
 
Shares Outstanding
FalconStor Software, Inc., 2006 Incentive Stock Plan
 
 
1,542,000
FalconStor Software, Inc., 2013 Outside Directors Equity Compensation Plan
 
 
6,800
FalconStor Software, Inc., 2000 Stock Option Plan
 
 
81,500
Schedule of Stock Option Activity
A summary of the Company’s stock option activity for 2017 is as follows: 

 
Number of
Options
 
Weighted
Average
Price
 
Weighted
Average
Remaining
Contractual
Life (Years)
 
Aggregate
Intrinsic
Value
Options Outstanding at December 31, 2016
 
3,491,490

 
$
3.18

 
4.83
 
$

Granted
 
1,470,000

 
$
0.43

 
 
 
 
Exercised
 

 
$

 
 
 
 
Forfeited
 
(2,772,840
)
 
$
1.97

 
 
 
 
Expired
 
(162,450
)
 
$
11.90

 
 
 
 
Options Outstanding at December 31, 2017
 
2,026,200

 
$
2.14

 
5.32
 
$

Options Exercisable at December 31, 2017
 
1,317,000

 
$
2.91

 
3.44
 
$

Options Expected to Vest after December 31, 2017
 
709,200

 
$
0.72

 
8.82
 
$

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,
 
 
2017
 
2016
Cost of revenue - Support and Service
 
64,427

 
80,903

Research and development costs
 
233,955

 
1,653,336

Selling and marketing
 
48,286

 
241,481

General and administrative
 
76,285

 
352,498

 
 
$
422,953

 
$
2,328,218

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,
 
 
2017
 
2016
Directors, officers and employees
 
$
167,369

 
$
598,549

Non-employee consultants
 

 
96,237

 
 
$
167,369

 
$
694,786

Schedule of Restricted Stock Units Activity
A summary of the Company’s restricted stock activity for 2017 is as follows: 
 
 
Number of Restricted Stock Awards
Non-Vested at December 31, 2016
 
2,136,800

Granted
 
750,418

Vested
 
(673,625
)
Forfeited
 
(1,664,625
)
Non-Vested at December 31, 2017
 
548,968

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,
 
 
2017
 
2016
Non-qualified stock options
 
$
41,159

 
$
(5,915
)
Restricted stock awards
 

 
96,237

 
 
$
41,159

 
$
90,322

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,
 
 
2017
 
2016
Expected dividend yield
 
0%
 
0%
Expected volatility
 
57% - 59%
 
55%
Risk-free interest rate
 
1.94% - 2.02%
 
1.29 - 1.36%
Expected term (years)
 
5.5
 
5.5
Discount for post-vesting restrictions
 
N/A
 
N/A