Quarterly report pursuant to Section 13 or 15(d)

Stock-based compensation

Stock-based compensation

9 Months Ended

Sep. 30, 2015

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 September 30, 2015, 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 September 30, 2015 was 1,617,533.

Stock option activity for the nine months ended September 30, 2015 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, 2014	1,356,325		$1.20-$5.39	$	2.77	5.12 years	$	3,618,935
Granted	160,000		$3.39-$4.05	3.43
Exercised	(222,375	)	$1.20-$2.60	1.62
Canceled and forfeited	(28,750	)	$1.20-$4.50	2.45
Expired	—		—	—
Outstanding, September 30, 2015	1,265,200		$1.20-$5.39	$	3.06	6.25 years	$	955,919
Exercisable, September 30, 2015	776,619			$	2.30		$	935,747
Vested and expected to vest, September 30, 2015	1,165,200			$	2.90		$	955,919

Stock-Based Compensation - Ilios

In 2009, Ilios adopted the 2009 Stock Incentive Plan, or the 2009 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 maximum number of shares allowable for issuance under the 2009 Plan is 2,000,000 shares of common stock. The 2009 Plan has 1,325,000 available for grant as of September 30, 2015. There were no grants during 2015 to date. 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 Plan.

Consolidated stock-based compensation expense for the nine months ended September 30, 2015 and 2014 was $90,971 and $120,972, respectively. No tax benefit was recognized related to the stock-based compensation recorded during the periods.