4. Stock-based Compensation

The Company recognized stock-based compensation on all employee and non-employee awards as follows:

 

		Three Months Ended September 30, 2016				Three Months Ended September 30, 2015				Nine Months Ended September 30, 2016				Nine Months Ended September 30, 2015
Research and development		$	3,697			$	76,579			$	(92,354	)		$	180,449
General and administrative			243,315				196,004				582,664				486,688
Discontinued operations			(21,585	)			166				(21,318	)			(8,108	)
Total Stock based compensation		$	225,427			$	272,749			$	468,992			$	659,029

The Company granted -0- and 700,000 stock options, with a weighted-average grant date fair value of $0.00 and $0.72 per share, during the three and nine months ended September 30, 2016, respectively. The Company granted -0- and 910,000 stock options, with a weighted-average grant date fair value of $0.00 and $1.29 per share, during the three and nine months ended September 30, 2015, respectively.

During the nine months ended September 30, 2016, 559,164 stock options previously granted have vested and 574,758 stock options were forfeited and no stock options were exercised.

 

In March 2015, the Compensation Committee of the Board of Directors (the “Compensation Committee”) recommended and approved, and the Board of Directors approved, a new program of annual equity based awards for directors intended to align the interests of our directors with stockholders over a long-term basis. The awards would be made from the Company’s 2012 Equity Incentive Plan (the “2012 Plan”) In connection with and in furtherance of the new equity based award program, the Board approved stock option awards in the amount of 80,000 under the Company’s 2012 Plan, to each of the Company’s non-employee directors, at an exercise price of $1.32 per share, the closing price on the March 16, 2015, the date of grant. The non-employee directors were each also awarded 40,000 restricted shares of Company common stock under the Company’s 2012 Plan, of which 10,000 restricted shares vested at the end of each calendar quarter in 2015, provided the recipient remained a director through the vesting date.

The new equity based programs also included a minimum dollar value stock ownership holding requirement threshold before shares can be sold.

On March 16, 2015, in connection with and in furtherance of the new equity based award program, the Board of Directors of the Company approved stock option awards as previously recommended and approved by the Compensation Committee for the Company’s named executive officers currently employed with the Company. Mr. Sullivan, the Company’s Chief Financial Officer, and Dr. Handfield, the Company’s Senior Vice President of Discovery Research, were granted options to purchase 200,000, and 150,000 shares of Company common stock, respectively, under the Company’s 2012 Plan at an exercise price of $1.32 per share, the closing price on the March 16, 2015, the date of grant. The options are subject to time-based vesting in equal annual installments over a three-year period on the first, second and third anniversaries of the date of the grant, provided that the recipient remains employed with the Company through the vesting dates.

On February 15, 2016, in connection with and in furtherance of the equity based award program, the Board approved stock option awards in the amount of 80,000, to each of the Company’s non-employee directors, under the Company’s 2012 Plan at an exercise price of $0.84 per share, the closing price on February 16, 2016, the date of grant. The non-employee directors were each also awarded 40,000 restricted shares of Company common stock under the Company’s 2012 Plan, of which 10,000 restricted shares vest at the end of each calendar quarter in 2016, provided the recipient remains a director through the vesting date.

On June 6, 2016, in connection with the Company’s employment of Dr. Alan Joslyn as President and Chief Executive Officer, the Company issued (i) stock options to purchase 300,000 shares of the Company’s common stock at an exercise price equal to $0.55 per share which stock options shall vest in six installments of 50,000 shares every six months after June 6, 2016, provided that he has continued his employment with the Company through such dates, and (ii) 30,000 shares of restricted stock of the Company, vesting in two installments on the six month and twelve month anniversaries of June 6, 2016.

Each executive officer and non-employee director receiving the above equity based awards will be subject to a minimum dollar value stock ownership holding requirement with respect to the awards received as well as all prior equity awards under the 2012 Plan which requirements are intended to align the ability to sell shares with the performance of the Company’s stock price. The above named executive officer recipients will each have a minimum dollar value stock ownership holding requirement threshold equal to two times (2x) their then base salaries below which dollar threshold they would be precluded from selling any shares of Company stock obtained from the Company under its 2012 Plan. Also, the above non-employee directors will each be subject to a minimum dollar value stock ownership holding requirement threshold equal to six times the annual Board retainer ($270,000) below which dollar threshold they would be precluded from selling shares of Company stock acquired from the Company under its 2012 Plan.