4. Stock-Based Compensation
|12 Months Ended|
Dec. 31, 2015
|4. Stock-Based Compensation||
The Company's stock-based compensation plan provides for the issuance of stock options to the Companys employees, officers, and directors. The Compensation Committee of Fusions Board of Directors (the "Compensation Committee") approves all awards that are granted under the Company's stock-based compensation plan.
In accordance with the Company's 2009 Stock Option Plan, as amended, the Company has reserved 1,260,000 shares of Fusion common stock for issuance to employees. Options under the plan typically vest in annual increments over a three or four year period, expire ten years from the date of grant and are issued at exercise prices no less than 100% of the fair market value at the time of grant. The Company has also reserved 42,620 shares for issuance in the event of exercise of outstanding options granted under the now expired 1998 Stock Option Plan.
The following table summarizes the stock option activity under our stock plans for the years ended December 31, 2015 and 2014:
The Company recognized compensation expense of approximately $639,296 and $371,758 for the years ended December 31, 2015 and 2014, respectively. These amounts are included in selling, general, and administrative expenses in the consolidated statements of operations.
The following weighted average assumptions were used to determine the fair value of the stock options granted under the Companys stock-based compensation plan using the Black-Scholes option-pricing model:
*The dividend yield is zero as the Company has never paid and does not expect to pay dividends.
The following table summarizes additional information regarding outstanding and exercisable options under the stock option plans at December 31, 2015:
The weighted-average estimated fair value of stock options granted was $2.44 and $3.92 during the years ended December 31, 2015 and 2014, respectively. No stock options were exercised during the years ended December 31, 2015 and 2014. As of December 31, 2015, there was approximately $1.7 million of total unrecognized compensation cost related to stock options granted under the Companys stock incentive plans, which is expected to be recognized over a weighted-average period of 2.05 years.
The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.
Reference 1: http://www.xbrl.org/2003/role/presentationRef