Quarterly report pursuant to Section 13 or 15(d)

SHARE BASED AWARDS, RESTRICTED STOCK AND RESTRICTED STOCK UNITS (RSU)

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SHARE BASED AWARDS, RESTRICTED STOCK AND RESTRICTED STOCK UNITS (RSU)
6 Months Ended
Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
SHARE BASED AWARDS, RESTRICTED STOCK AND RESTRICTED STOCK UNITS (RSUs)

NOTE 9 – SHARE BASED AWARDS, RESTRICTED STOCK AND RESTRICTED STOCK UNITS (“RSUs”)

 

The Board resolved that, beginning with the fourth calendar quarter of 2015, the Company shall pay each member of the Company’s Board of Directors, who is not also an employee of the Company, for each calendar quarter during which such member continues to serve on the Board compensation in the amount of $15,000 in cash and 325,000 shares of Company common stock. The 975,000 shares issued to all the directors for the three months ended March 31, 2016 were valued at the market price of the Company’s common stock on March 31, 2016, for total compensation expense of $9,750. On March 31, 2016, the Board awarded the Chairman a cash bonus of approximately $89,000 and, 2,230,000 shares of Company common stock for his service in the three months ended March 31, 2016,

 

The Board authorized grants of approximately 2,761,000 shares of the Company common stock during the second quarter of 2016, which were valued at the market price of the Company's common stock on date of grant, for total compensation expense of approximately $13,000. On June 8, 2016, the Board also awarded the Chairman a cash bonus of approximately $89,200 and 6,027,000 shares of Company common stock, valued at approximately $8,000.

 

The Board also voted on June 8, 2016, to increase the shares available for grant under the 2014 Equity Incentive Plan to 125,000,000. The Company intends to file a Form S-8 regarding the increased shares available for grant now that the increase in authorized shares has been approved.

 

A summary of the activity related to RSUs for the three months ended June 30, 2016 and 2015 is presented below:

 

Restricted stock units (RSU’s)   Total shares     Grant date fair
value
 
RSU’s non-vested at January 1, 2016     152,823       $0.51 - $1.88  
RSU’s granted     14,285,714       $0.007  
RSU’s vested     (125,431 )     $0.51- $1.88  
RSU’s forfeited           $—  
                 
RSU’s non-vested June 30, 2016     14,313,106       $0.51 - $1.88  

 

Restricted stock units (RSU’s)   Total shares     Grant date fair
value
 
RSU’s non-vested at January 1, 2015     199,584       $10.70  
RSU’s granted     177,633       $1.88 - $6.70  
RSU’s vested     (135,135 )     $1.88 - $6.70  
RSU’s forfeited           $—  
                 
RSU’s non-vested June 30, 2015     242,082       $1.88 - $11.00  

 

A summary of the expense related to restricted stock, RSUs and stock option awards for the three and six months ended June 30, 2016 is presented below:

 

    Three months ended
June 30, 2016
    Six months ended
June 30, 2016
 
Restricted Stock   $     $ 390,000  
RSU’s     38,144       192,192  
Stock options            
Common stock     30,281       62,331  
                 
Total   $ 68,425     $ 644,523