Quarterly report pursuant to Section 13 or 15(d)

Stock Option Plans

v3.5.0.2
Stock Option Plans
6 Months Ended
Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Option Plans
Note 10 — Stock Option Plans
 
A summary of stock option activity for the six months ended June 30, 2016 is as follows:
 
 
 
 
 
Number of 
Shares
 
Weighted
Average
Exercise
Price
 
 
 
 
 
 
 
 
 
Outstanding at December 31, 2015
 
 
1,022,789
 
$
4.59
 
Granted
 
 
7,500
 
 
5.69
 
Exercised
 
 
 
 
 
Expired or Forfeited
 
 
(31,523)
 
 
5.58
 
 
 
 
 
 
 
 
 
Outstanding at June 30, 2016
 
 
998,766
 
$
4.57
 
 
The weighted average remaining contractual term for all options as of June 30, 2016 and December 31, 2015 was 7.1 years and 7.6 years respectively.
 
As of June 30, 2016, there were 518,054 options that were fully vested and exercisable at a weighted average exercise price of $5.02 per share. The weighted average remaining contractual term on the vested options is 7.2 years.
 
As of June 30, 2016 there were 480,712 unvested options exercisable at a weighted average exercise price of $4.07 per share. The weighted average remaining contractual term on the unvested options is 7.1 years.
 
No options were exercised during the six months ended June 30, 2016 and 2015.
 
The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. At June 30, 2016, the Company had approximately $1,874,254 of unrecognized stock compensation expense, which will be recognized over a weighted average period of approximately 1.8 years.
 
The aggregate intrinsic value that would have been received by the option holders had all holders exercised their options on June 30, 2016 was $3,461,296. The value represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the second quarter of fiscal year 2016 and the exercise price, multiplied by the number of in-the-money stock options). The amount of this aggregate intrinsic value will change based on the fair market value of the Company’s stock. 
    
The following summary table shows the assumptions used to the fair value of options granted during the six-month period ended June 30, 2016 and their estimated value:
 
• Expected term in years
 
 
7.9 years
 
• Volatility
 
 
109.7
%
• Risk-free interest rate
 
 
1.68
%
• Expected annual dividends
 
 
None
 
• Fair value of options issued
 
$
37,755