Equity |
6 Months Ended |
|---|---|
Jun. 30, 2016 | |
| Equity [Abstract] | |
| Equity |
Note 10 - Equity
The holders of common shares are entitled to one vote per share at meetings of the Company. Holders of Series A convertible preferred shares are entitled to five votes per share at meetings of the Company.
A restricted stock award is an award of common shares that are subject to certain restrictions during a specified period. Restricted stock awards are independent of option grants and are generally subject to forfeiture if employment terminates prior to the release of the restrictions. The grantee cannot transfer the shares before the restricted shares vest. Shares on non-vested restricted stock have the same voting rights as common stock, are entitled to receive dividends and other distributions thereon and are considered to be currently issued and outstanding. The Companys restricted stock awards vest of a period of one to three years. The Company expenses the cost of the restricted stock awards, which is determined to be the fair market value of the shares at the date of grant, straight-line over the period during which the restrictions lapse. For these purposes, the fair market value of the restricted stock is determined based on the closing price of the Companys common stock on the grant date.
On June 8, 2016, the Company issued 27,500 common shares to an officer in connection with his employment agreement. These shares vest 1/3 immediately on the date of the grant and the remaining 2/3 vests equally on March 1, 2017 and March 1, 2018. The fair value of these shares was $54,725 and was based on the share price on the date of the grant. $18,243 was recorded during the three months ended June 30, 2016 as administrative expense on the condensed consolidated statement of operations and comprehensive income and the remaining $36,482 was recorded as deferred compensation, a contra equity account, on the condensed consolidated balance sheet as of June 30, 2016.
As of June 30, 2016 and December 31, 2015 the Company has 220,500 reserved shares of its common stock for outstanding options. |