Restricted Stock Units

During the nine months ended September 30, 2017, the Company issued 13,500 restricted stock units to each of its three non-management directors as an annual grant for 2017 for service on the Company's Board of Directors.  Each restricted stock unit represents a contingent right to receive one share of the Company's common stock.  The restricted stock units vest in four equal quarterly installments of 3,375 shares of common stock on March 15, 2017, June 15, 2017, September 15, 2017 and December 15, 2017, subject to continued service on the Board of Directors.

A summary of restricted stock unit activity for the nine months ended September 30, 2017 is as follows (each restricted stock unit represents the right to receive one share of the Company's common stock):

Restricted stock unit compensation expense was $237,000 and $711,000 for the three and nine months ended September 30, 2017, respectively.  Restricted stock unit compensation expense was $189,000 and $221,000 for the three and nine months ended September 30, 2016, respectively.

The Company has an aggregate of $1,097,000 of unrecognized restricted stock unit compensation expense as of September 30, 2017 to be expensed over a weighted average period of 1.6 years.

All of the Company's 830,125 outstanding restricted stock units at September 30, 2017 have dividend equivalent rights.

Stock Options

There were no stock option grants during the three or nine months ended September 30, 2017 and September 30, 2016.

The following table presents information relating to all stock options outstanding and exercisable at September 30, 2017:

The Company had no recorded stock-based compensation related to stock option grants for the three months ended September 30, 2017 and September 30, 2016, respectively.  The Company recorded stock-based compensation related to stock option grants of $-0- and $12,000 for the nine months ended September 30, 2017 and September 30, 2016, respectively.

The Company had no unrecognized stock-based compensation cost as of September 30, 2017.  The aggregate intrinsic value of options exercisable at September 30, 2017 was $5,431,000.

During the nine months ended September 30, 2017, the Company's Chief Financial Officer and three of his children exercised stock options to purchase an aggregate of 75,000 shares of the Company's common stock at an exercise price of $1.40 per share.  In addition, during the nine months ended September 30, 2017, a former director exercised a stock option to purchase 125,000 shares of the Company's common stock at an exercise price of $1.40 per share.

Warrants

As of September 30, 2017, there were no outstanding warrants to purchase shares of the Company's common stock.

During the nine months ended September 30, 2017, Recognition Interface, LLC exercised its remaining warrants to purchase an aggregate of 375,000 shares of the Company's common stock, at an exercise price of $2.10 per share, which resulted in gross proceeds to the Company of $787,500.