The 2013 Stock Incentive Plan ("2013 Plan") provides for the grant of any or all of the following types of awards: (a) stock options, (b) restricted stock, (c) deferred stock, (d) stock appreciation rights, and (e) other stock-based awards.  Awards under the 2013 Plan may be granted singly, in combination, or in tandem.  Subject to standard anti-dilution adjustments as provided , the 2013 Plan provides for an aggregate of 2,600,000 shares of the Company's common stock to be available for distribution.  The Compensation Committee will generally have the authority to administer the 2013 Plan, determine participants who will be granted awards the size and types of awards, the terms and conditions of awards and the form and content of the award agreements representing awards.  Awards under the 2013 Plan may be granted to employees, directors and consultants of the Company and its subsidiaries.

At December 31, 2015, stock options to purchase an aggregate of 385,000 shares of common stock were outstanding under the 2013 Stock Incentive Plan and options to purchase 2,470,000 shares of common stock were outstanding representing option grants outside of the 2013 Plan (issued prior to the establishment of the 2013 Plan).

The fair value of options on the date of grant is estimated using the Black-Scholes option-pricing model utilizing the following weighted average assumptions:

The weighted average fair value of the options, on the option grant date during the years ended December 31, 2015 and December 31, 2014 was $0.68 and $0.65 per share, respectively.

The following table summarizes stock option activity for the years ended December 31:

During the years ended December 31, 2015 and 2014, the Company granted stock options to purchase an aggregate of 105,000 and 280,000 shares of its common stock, respectively, to its directors in 2015 and its officers, directors and consultants in 2014.  The fair value of these options based on the Black-Scholes option-pricing model amounted to $71,000 and $208,000, respectively, for the 2015 and 2014.  The Company recognized stock-based compensation of $272,000 (consisting of $235,000 with respect to employees and directors and $37,000 for a consultant) and $333,000 (consisting of $296,000 with respect to employees and directors and $37,000 for a consultant) in 2015 and 2014, respectively.  The Company at December 31, 2015 has remaining unrecognized expenses related to unvested stock options of $12.000.  The aggregate intrinsic value of all options exercisable at December 31, 2015 was $2,188,900.

During the year ended December 31, 2015, options to purchase an aggregate of 200,000 shares were exercised on a cashless (net exercise) basis by the Company's Executive Vice President (150,000 shares) and a consultant (50,000 shares) at an exercise price of $0.90 per share.  With respect to the aforementioned stock option exercises, aggregate net shares of 120,349 were delivered to the Executive Vice President (90,000 shares) and consultant (30,349 shares).

During the year ended December 31, 2014, options to purchase an aggregate of 1,592,500 shares of the Company's common stock were exercised on a cashless (net exercise basis), at prices ranging from $0.25 per share to $0.68 per share.  As all of these options were exercised on a cashless (net exercise) basis and shares were delivered to fund payroll withholding taxes on exercise as noted below, an aggregate of 735,528 net shares of common stock were issued as a result of these option exercises. During the year ended December 31, 2014 with respect to the aforementioned stock option exercises, an aggregate of 533,256 shares were delivered by the Company's Chief Executive and Executive Vice President with an aggregate  value of $1,013,938 to fund payroll withholding taxes on exercise.

In July 2014, two individuals exercised options to purchase an aggregate of 20,000 shares of common stock, at an exercise price of $1.00 per share.

The following table presents information relating to all stock options outstanding and exercisable at December 31, 2015:

As of December 31, 2015, the following are the outstanding warrants to purchase shares of the Company's common stock:

The outstanding warrants at December 31, 2015 pertain to 5-year warrants issued in connection with the Company's (through Mirror Worlds Technologies, LLC, its wholly-owned subsidiary) purchase of the Mirror Worlds Patent Portfolio owned by Mirror Worlds, LLC in May 2013 (See Note H[2]).  Such warrants include warrants to purchase an aggregate of 750,000 shares of common stock (375,000 shares at $2.10 per share and 375,000 shares at $1.40 per share) owned by Recognition Interface, LLC.

On June 3, 2014, the Company repurchased at a purchase price of $505,000 from Looking Glass LLC (previously Mirror Worlds LLC), the prior owner of the Mirror Worlds Patent Portfolio, warrants to purchase an aggregate of 1,750,000 shares of its common stock (875,000 shares at an exercise price of $2.10 per share and 875,000 shares at an exercise price of $1.40 per share).  The Company did not issue any warrants in 2015 or 2014.