Annual report pursuant to Section 13 and 15(d)

Stock-Based compensation (Tables)

v3.3.1.900
Stock-Based compensation (Tables)
12 Months Ended
Dec. 31, 2015
Schedule Assumptions Used in Black-scholes Option-pricing Method

The fair value of each stock option granted has been determined using the Black-Scholes option pricing model. The material factors incorporated in the Black-Scholes model in estimating the fair value of the options granted for the periods presented were as follows:

 

    Years ended December 31,
    2015   2014
Expected dividend yield   0.00%   0.00%
Expected stock-price volatility   51.45% - 67.08%   51.45% - 64.24%
Risk-free interest rate   0.77% - 2.27%   0.88% - 3.04%
Term of options   10   5 - 10
Stock price   $1.70 - $5.86   $1.14 - $5.86

Schedule of Price Received from Sales to Third Parties of Common stock

The table below presents the prices received from sales to third parties of the Company’s common stock and various classes of the Company’s preferred stock from inception to date:

 

Year   Share Class   Price per Share  
2005   Common Stock(a)   $ 1.79  
2006   Series A-2 Preferred Stock(a)(b)   $ 0.40  
2008 – 2009   Series A-3 Preferred Stock(b)   $ 0.62  
2010 – 2013   Series B Preferred Stock(b)   $ 1.19  
2014   Series C Preferred Stock(b)   $ 1.30  

  

(a) After giving effect to the Company’s conversion from an LLC to a corporation
   
(b) Each share of preferred stock is convertible into shares of the Company’s common stock on a 7.15-for-1 basis, after giving effect to the Company’s reverse stock split, which was effected on June 17, 2015.

Schedule of Stock Option Grants to the Company's Employees and Non-Employees

Information regarding the Company’s stock option grants to the Company’s employees and non-employees, along with the estimated fair value per share of the underlying common stock, for stock options granted since 2005 is summarized as follows:

 

Grant Date   Number of Common
Shares Underlying
Options Granted
    Exercise Price per
Common Share
    Estimated Fair Value
per Share of Common
Stock
   

 

Intrinsic Value

Per Option

 
2005     58,321     $ 0.07     $ 1.79     $ 1.72  
2009     60,559     $ 0.72 - $0.79     $ 4.43     $ 3.71 - $3.64  
2011     33,846     $ 1.03     $ 1.00     $ 0.00  
2012     60,019     $ 1.14     $ 1.14     $ 0.00  
2013     100,000     $ 1.14 - $1.30     $ 1.14     $ 0.00  
2014     1,626,740     $ 5.86 - $13.23     $ 5.86     $ 0.00  
2015     34,000     $ 2.25     $ 2.25     $ 0.00  

Summary of the Options Granted to Employees and Non-employees

The following represents a summary of the options granted to employees and non-employees outstanding at December 31, 2015 and changes during the period then ended:

 

    Options     Weighted Average Exercise Price  
Outstanding at December 31, 2014     1,952,516     $ 7.022  
Granted     34,000       2.250  
Exercised/Expired/Forfeited     (47,982 )     (1.246 )
Outstanding at December 31, 2015     1,938,534     $ 7.081  
Exercisable at December 31, 2015     697,832     $ 5.285  
Expected to be vested     1,240,702     $ 8.091  

Option Pricing Method [Member]  
Schedule Assumptions Used in Black-scholes Option-pricing Method

The OPM relies on the Black-Scholes option-pricing model to value the call options on the Company’s invested capital. The following inputs were applied in the Black-Scholes calculations of the OPM:

 

    Valuation Dates  
    November 7, 2013     July 31, 2012     December 31, 2010  
Risk-free rate     0.55 %     0.57 %     2.01 %
Maturity (years)     3.00       4.00       5.00  
Volatility     58.00 %     61.00 %     61.00 %