Quarterly report pursuant to Section 13 or 15(d)

Stock-based compensation

Stock-based compensation

3 Months Ended

Mar. 31, 2017

Stock-Based Compensation

In 2006, the Company adopted the 2006 Stock Option and Incentive Plan or the Plan, under which the Board of Directors may grant incentive or non-qualified stock options and stock grants to key employees, directors, advisors and consultants of the Company. The Plan was amended at various dates by the Board of Directors to increase the reserved shares of common stock issuable under the Plan to 3,838,750 as of March 31, 2017, or the Amended Plan.

Stock options vest based upon the terms within the individual option grants, with an acceleration of the unvested portion of such options upon a change in control event, as defined in the Amended Plan. The options are not transferable except by will or domestic relations order. The option price per share under the Amended Plan cannot be less than the fair market value of the underlying shares on the date of the grant. The number of shares remaining available for future issuance under the Amended Plan as of March 31, 2017 was 2,186,424.

Stock option activity for the three months ended March 31, 2017 was as follows:



Common Stock Options	Number of Options		Exercise Price Per Share	Weighted Average Exercise Price		Weighted Average Remaining Life	Aggregate Intrinsic Value
Outstanding, December 31, 2016	1,117,918		$0.79-$5.39	$	3.10	5.00 years	$	1,415,150
Granted	3,000		$3.72	3.72
Exercised	(61,140	)	$0.79-$2.00	1.75
Canceled and forfeited	—		—	—
Expired	—		—	—
Outstanding, March 31, 2017	1,059,778		$0.79-$5.39	$	3.18	5.12 years	$	1,000,757
Exercisable, March 31, 2017	783,153			$	2.73		$	993,591
Vested and expected to vest, March 31, 2017	1,018,284			$	3.13		$	999,682

Consolidated stock-based compensation expense for the three months ended March 31, 2017 and 2016 was $48,842 and $27,243, respectively. No tax benefit was recognized related to the stock-based compensation recorded during the periods.