STOCK OPTION PLAN AND STOCK-BASED COMPENSATION
|6 Months Ended|
Jun. 30, 2017
|Disclosure of Compensation Related Costs, Share-based Payments [Abstract]|
|STOCK OPTION PLAN AND STOCK-BASED COMPENSATION||
7. STOCK OPTION PLAN AND STOCK-BASED COMPENSATION
During the year ended December 31, 2010, the Company adopted a stock option plan entitled “The 2010 Stock Plan” (“2010 Plan”) under which the Company may grant options to purchase up to 5,000,000 shares of common stock. On September 7, 2013, the 2010 plan was amended to increase the number of shares of common stock issuable under the 2010 Plan to 7,500,000. As of June 30, 2017 and December 31, 2016, there were 250,000 and 250,000 options outstanding under the 2010 Plan, respectively.
During the year ended December 31, 2011, the Company adopted a non-qualified stock option plan entitled “2011 Non-Qualified Stock Plan” (“2011 Plan”) under which the Company may grant options to purchase 2,100,000 shares of common stock. In
December 2012, the 2011 Plan was amended to increase the number of shares of common stock issuable under the 2011 Plan to 12,000,000 shares. During the period ended March 31, 2013, the 2011 Plan was amended to increase the number of shares of common stock issuable under the 2011 Plan to 17,500,000. As of June 30, 2017 and December 31, 2016, there were 11,844,000 and 12,039,000 options outstanding under the 2011 Plan, respectively.
Under the terms of the stock plans, the Board of Directors shall specify the exercise price and vesting period of each stock option on the grant date. Vesting of the options is typically one to four years and the options typically expire in five to ten years.
No stock options were granted in either six month period ending June 30, 2017 or 2016.
The Company recognized $12,439 and $24,878 of stock-based compensation costs in the accompanying statement of operations for the three and six months ended June 30, 2017, respectively. No stock-based compensation costs was recorded for either the three or six month period ended June 30, 2016. As of June 30, 2017, there was $207,317 of unrecognized compensation expense related to non-vested stock option awards that is expected to be recognized in future periods.
The following table summarizes the Company’s stock option activity during the six months ended June 30, 2017:
There were no stock option exercises during the six months ended June 30, 2017 or June 30, 2016.
The following table summarizes information about stock options that are vested or expected to vest at June 30, 2017:
The weighted-average remaining contractual life for stock options exercisable at June 30, 2017 is 4.21 years. At June 30, 2017, the Company has 5,656,000 and 7,250,000 options available for grant under the 2011 Plan and 2010 Plan, respectively. There was $0 intrinsic value for fully vested, exercisable options at both June 30, 2017 and December 31, 2016. There were no options exercised in the six months ended June 30, 2017 or June 30, 2016. No actual tax benefit was realized from stock option exercises during these periods.
As of June 30, 2017, 8,094,000 of the stock options issued by the Company are fully vested and 4,000,000 remain unvested.
The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.
Reference 1: http://www.xbrl.org/2003/role/presentationRef