Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation Plans

v3.8.0.1
Stock Based Compensation Plans
9 Months Ended
Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Based Compensation Plans
Note 10 — Stock Based Compensation Plans
 
A summary of stock option activity for the nine months ended September 30, 2017 is as follows:
 
 
 
 
 
Weighted
 
 
 
 
 
Average
 
 
 
Number of
 
Exercise
 
 
 
Options
 
Price
 
 
 
 
 
 
 
 
 
Outstanding at December 31, 2016
 
 
1,084,298
 
$
4.76
 
Granted
 
 
427,500
 
 
6.00
 
Exercised
 
 
(63,187)
 
 
2.89
 
Expired or Forfeited
 
 
(30,802)
 
 
9.35
 
 
 
 
 
 
 
 
 
Outstanding at September 30, 2017
 
 
1,417,809
 
$
5.00
 
 
The weighted average remaining contractual term for all options as of September 30, 2017 and December 31, 2016 was 7.7 years and 7.6 years, respectively.
 
As of September 30, 2017, there were 716,046 options that were fully vested and exercisable at a weighted average exercise price of $4.63 per share. The weighted average remaining contractual term on the vested options is 6.7 years.
  
As of September 30, 2017, there were 701,763 unvested options exercisable at a weighted average exercise price of $5.41 per share. The weighted average remaining contractual term on the unvested options is 8.7 years.
 
For the nine months ended September 30, 2017, all options exercised were on a cashless basis.
  
The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. At September 30, 2017, the Company had approximately $3,512,000 of unrecognized stock compensation expense, which will be recognized over a weighted average period of approximately 3.0 years.
 
During the nine months ended September 30, 2017, the Company issued 100,000 shares of non-vested stock to a new executive officer which vest over four years. The fair market value on the date of grant of the non-vested stock issued during the nine months ended September 30, 2017 was $5.90, resulting in an aggregate fair value of $590,000. As of September 30, 2017, there was $531,000 of unrecognized compensation cost related to unvested stock awards. This amount is expected to be recognized over a weighted-average period of 3.6 years.
 
For the three months ended September 30, 2017 and 2016, the Company recorded total stock compensation expense of approximately $425,000 and $192,000, respectively. For the nine months ended September 30, 2017 and 2016, the Company recorded total stock compensation expense of approximately $912,000 and $541,000, respectively.