5. Stock-based compensation
|9 Months Ended|
Sep. 30, 2016
|5. Stock-based compensation||
Fusion'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 under Fusion's stock-based compensation plan.
The following weighted average assumptions were used to determine the fair value of the stock options granted under Fusions 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 on its common stock.
The Company recognized compensation expense of approximately $194,000 and $154,000 for the three months ended September 30, 2016 and 2015, respectively, and $573,000 and $393,000 for the nine months ended September 30, 2016 and 2015, respectively. These amounts are included in selling, general and administrative expenses in the condensed consolidated interim statements of operations.
The following table summarizes the stock option activity for the nine months ended September 30, 2016:
As of September 30, 2016, the Company had approximately $1.0 million of unrecognized compensation expense, net of estimated forfeitures, related to stock options granted under the Companys stock-based compensation plan, which is expected to be recognized over a weighted-average period of 1.56 years.
During the nine months ended September 30, 2016, Fusion awarded 55,000 shares of its restricted common stock to its Chief Financial Officer. The restricted stock granted was valued at the closing stock price on the day employment commenced and vests in three equal installments on the first, second and third anniversary of employment. For the three and nine months ended September 30, 2016, the Company recognized compensation expense of approximately $8,300 and $17,000, respectively, and has unamortized compensation of $82,960.
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