4. Stock-Based Compensation
|12 Months Ended|
Dec. 31, 2016
|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 approves all awards that are granted under the Company's stock-based compensation plan.
The Company's 2016Equity Incentive Plan, ratified by the Companys stockholders on October 28, 2016, reserves a number of shares of common stock equal to 10% of the Companys shares outstanding from time to time on a fully diluted basis. The plan provides for the grant of incentive stock options, stock appreciation rights, restricted stock, restricted stock units, stock grants, stock units, performance shares and performance share units to employees, officers, non-employee directors of, and consultants to the Company. 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 following table summarizes the stock option activity under our stock plans for the years ended December 31, 2016 and 2015:
The Company recognized compensation expense of $853,458 and $639,296 related to stock options for the years ended December 31, 2016 and 2015, 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 following table summarizes additional information regarding outstanding and exercisable options under the stock option plans at December 31, 2016
The weighted-average estimated fair value of stock options granted was $1.08 and $2.44 during the years ended December 31, 2016 and 2015, respectively. No stock options were exercised during the years ended December 31, 2016 and 2015. As of December 31, 2016, there was approximately $1.9 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 2.26 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