Share-Based Compensation | 3 Months Ended |
Mar. 31, 2015 |
Share-Based Compensation [Abstract] | |
SHARE-BASED COMPENSATION | 6. SHARE-BASED COMPENSATION |
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Stock Option Plan |
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The Company adopted the Vycor Medical, Inc. Employee, Director, and Consultant Stock Plan (the “Plan”) as of February 13, 2008. The Plan provides for both incentive stock options and nonqualified stock options to be granted to employees, officers, consultants, independent contractors, directors and affiliates of the Company. The board of directors establishes the terms and conditions of all stock option grants, subject to the Plan and applicable provisions of the Internal Revenue Code. Incentive stock options must be granted at an exercise price not less than the fair market value of the common stock on the grant date. The options granted to participants owning more than 10% of the Company’s outstanding voting stock must be granted at an exercise price not less than 110% of the fair market value of the common stock on the grant date. The options expire on the date determined by the board of directors, but may not extend mare than 10 years from the grant date, while incentive stock options granted to participants owning more than 10% of the Company’s outstanding voting stock expire five years from the grant date. The vesting period for employees is generally over three years. The vesting Period for non-employees is determined based on the services being provided. The maximum number of shares of stock which may be delivered under the plan shall automatically increase by a number sufficient to cause the number of shares covered by the plan to equal 10% of the total number of shares of stock then outstanding on a fully diluted basis. |
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Under ASC Topic 718, the Company estimates the fair value of option awards on the date of grant using an option pricing model. The grant date fair value is recognized over the option vesting period, the period during which an employee is required to provide service in exchange for the award. No compensation cost is recognized for equity instruments for which employees do not render the requisite service. Under these standards, compensation cost for employee cost for employee stock-based awards is based on the estimated grant-date fair value and recognized over the vesting period of the applicable award on a straight-line basis. For the period ended March 31, 2015 and 2014, the Company recognized share-based compensation of $25,011 and $0, respectively, for employee stock options. |
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Stock appreciation rights may be granted either on a stand alone basis or in conjunction with all or part of any other stock options granted under the plan. As of March 31, 2015 there were no awards of any stock appreciation rights. |
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Non-Employee Stock Compensation |
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| | | | 3 months ended |
| | | | 31-Mar-15 |
Name | | Description | | $ in period |
Steven Girgenti | | 2,717 shares issued for services rendered to the board of directors | | $5,000 |
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Oscar Bronsther | | 2,660 shares issued for services rendered to the board of directors | | $5,000 |
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Lowell Rush | | 2,660 shares issued for services rendered to the board of directors | | $5,000 |
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Alvaro Pascual-Leone | | 919 shares issued for services rendered to the Scientific Advisory Board | | $1,563 |
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Jason Barton | | 831 shares issued for services rendered to the Scientific Advisory Board | | $1,563 |
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Jose Romano | | 831 shares issued for services rendered to the Scientific Advisory Board | | $1,563 |
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Josef Zihl | | 1,838 shares issued for services rendered to the Scientific Advisory Board | | $3,125 |
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Fountainhead Capital Mgmt | | 8,152 shares issued in accordance with the terms of the consulting agreement | | $15,000 |
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Acorn Management Partners | | 13,889 shares issued in relation to an investor advisory agreement | | $20,834 |
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Gordon Holmes | | 100,000 warrants issued in relation to an investor advisory agreement | | $4,492 |
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Total Compensation | | | | $63,139 |
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Totals and Fair Values |
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Aggregate stock-based compensation expense charged to operations for stock and warrants granted to the employees and non-employees for the three months ended March 31, 2015 was $88,150. As of March 31, 2015, there was $4,167 of total unrecognized compensation costs related to warrant and stock awards and non-vested options. |
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Stock-based compensation expenses related to common stock, options and warrants granted to employees and non-employees are recognized as the services are received or the stock, options and warrants are earned. The common stock, options or warrants meet the criteria for equity treatment and their fair is estimated at the grant date. Expense related to common stock is recognized on a straight-line basis over the period during which services are to be received; expense related to options and warrants is recognized on a straight-line basis over the shorter of the period during which services are to be received or the life of the option or warrant. The fair value of the common stock is determined by the then-prevailing share price. The grant date fair value of the options and warrants is estimated using the Black-Scholes option pricing model on the basis of the fair value of the underlying common stock on the measurement date, using the assumptions noted in the table below. Expected volatility is based on the historical volatility of a peer group of publicly traded companies. |
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The following assumptions were used in calculations of the Black-Scholes option pricing model for the three months ended March 31, 2015 and 2014: |
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| | Three months ended March 31, |
| | 2015 | | 2014 |
Risk-free interest rates | | 1.07% | | 0.78% |
Expected life | | 3 years | | 3 years |
Expected dividends | | 0% | | 0% |
Expected volatility | | 101% | | 75% |
Vycor Common Stock fair value | | $2.00 | | $2.05 |