In 2005, the Company approved the 2005 Equity Incentive Plan (the “2005 Plan”). The 2005 Plan provides for the granting of options, restricted stock or other stock-based awards to employees, officers, directors, consultants and advisors. During 2010, the maximum number of shares of Common Stock that may be issued pursuant to the 2005 Plan was increased to 891,222 shares. The Board of Directors (the “Board”) is responsible for administration of the 2005 Plan. The Company’s Board determines the term of each option, the option exercise price, the number of shares for which each option is granted and the rate at which each option is exercisable. Incentive stock options may be granted to any officer or employee at an exercise price per share of not less than the fair value per common share on the date of the grant (not less than 110% of fair value in the case of holders of more than 10% of the Company’s voting stock) and with a term not to exceed ten years from the date of the grant (five years for incentive stock options granted to holders of more than 10% of the Company’s voting stock). Nonqualified stock options may be granted to any officer, employee, consultant or director at an exercise price per share of not less than the par value per share.  Following adoption of the 2014 Equity Incentive Plan (the “2014 Plan”), no further grants were made under the 2005 Plan.

 

The Company’s Board adopted the 2014 Plan and the Employee Stock Purchase Plan (the “ESPP”), and the Company’s Stockholders approved the 2014 Plan and the ESPP Plan in February 2015. As of June 30, 2017, the maximum number of shares of Common Stock that may be issued pursuant to the 2014 Plan and the ESPP is 1,690,123 and 170,567 shares, respectively.

The following is a summary of stock option activity for the six months ended June 30, 2017 and 2016: 

 

On January 25, 2016, the Board approved the grant of options to purchase 48,300 shares of its common stock to two executives and seven members of the Board. On March 7, 2016, in connection with the Jade Acquisition, the Board approved the grant of options to purchase 47,786 shares of its common stock to two executives. On March 29, 2016, the Board approved the grant of options to purchase 114,438 shares of its common stock. On April 25, 2016, the Board approved the grant of options to purchase 41,732 shares of its common stock.

  

The fair value of options granted for the six months ended June 30, 2017 and June 30, 2016 was approximately $530,000 and $474,000, respectively. The fair value of restricted stock granted for the six months ended June 30, 2017 and June 30, 2016 was approximately $158,000 and $0, respectively. As of June 30, 2017 and June 30, 2016, there is approximately $1,295,000 and $1,099,000 of total unrecognized compensation expense related to unvested stock-based compensation arrangements granted, which cost is expected to be recognized over a weighted-average period of 2.12 and 2.71 years, respectively. The aggregate intrinsic value of stock options outstanding and exercisable at June 30, 2017 and June 30, 2016 is approximately $326,000 and $1,076,000, respectively. The intrinsic value of stock options exercised during the six months ended June 30, 2017 and June 30, 2016 was approximately $78,000 and $207,000, respectively.

At June 30, 2017, there were 186,461 options available under the 2014 Plan.