Quarterly report pursuant to Section 13 or 15(d)

Stock-based compensation

Stock-based compensation

3 Months Ended

Mar. 31, 2016

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, 2016, 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, 2016 was 1,759,533.

Stock option activity for the three months ended March 31, 2016 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, 2015	1,268,200		$1.20-$5.39	$	3.06	6.01 years	$	985,578
Granted	5,000		3.93	3.93
Exercised	—		—	—
Canceled and forfeited	(150,000	)	3.39	3.39
Expired	—		—	—
Outstanding, March 31, 2016	1,123,200		$1.20-$5.39	$	3.02	5.46 years	$	1,300,361
Exercisable, March 31, 2016	849,558			$	2.50		$	1,286,161
Vested and expected to vest, March 31, 2016	1,123,200			$	3.02		$	1,300,361

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 March 31, 2016. There were 5,000 option grants during the first quarter of 2016. 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 three months ended March 31, 2016 and 2015 was $27,243 and $93,254, respectively. No tax benefit was recognized related to the stock-based compensation recorded during the periods.