Restricted Stock Units

During the three month period ended June 30, 2016, the Company granted 15,000 restricted stock units (RSUs) to each of its three non-management directors.  Such RSUs issued to the non-management directors vest 7,500 RSUs on the date of grant, 3,750 RSUs on September 9, 2016 and 3,750 RSUs on December 9, 2016.  During the three month period ended June 30, 2016, the Company granted an aggregate of 140,000 RSUs to David Kahn (50,000 RSUs), the Company's Chief Financial Officer, Jon Greene (50,000 RSUs) the Company's Executive Vice-President, and Jonathan Maslow (40,000 RSUs), a consultant to the Company.  Each of such RSUs vest 50% on the one year anniversary of grant (June 9, 2017) and 50% on the two year anniversary of grant (June 9, 2018).  All of the aforementioned issued RSUs have dividend equivalent rights.

A summary of restricted stock unit activity 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 $32,000 and -0- for the three and six months ended June 30, 2016 and June 30, 2015, respectively.

The Company has an aggregate of $425,000 of unrecognized restricted stock unit compensation expense as of June 30, 2016 to be amortized over a weighted average period of 1.58 years.

Stock Options

During the six month period ended June 30, 2016, the Company's Chief Financial Officer and Executive Vice President exercised stock options to purchase 100,000 shares of the Company's common stock, at an exercise price of $1.59 per share, and 240,000 shares of common stock, at an exercise price of $1.60 per share, respectively.  The options were exercised on a partial cashless (net exercise) basis by delivery to the Company of an aggregate of 249,820 shares of the Company's common stock (Chief Financial Officer – 50,857 shares and Executive Vice President - 198,963 shares) and $60,000.  In addition, an aggregate of 22,655 shares (Chief Financial Officer – 5,563 shares and Executive Vice President – 17,092 shares) were delivered to fund payroll withholding taxes on exercise, resulting in net shares of 43,580 and 23,945 issued to the Chief Financial Officer and Executive Vice President, respectively, with respect to such option exercises.  During the six month period ended June 30, 2016, a consultant to the Company exercised a stock option to purchase 90,000 shares of the Company's common stock, at an exercise price of $1.60 per share.  Such option was exercised on a cashless (net exercise) basis by delivery to the Company of 72,727 shares of common stock resulting in 17,273 net shares issued to the consultant with respect to such option exercise.

During the three month period ended June 30, 2015, the Company granted 5-year stock options to each of its three non-management directors to purchase 35,000 shares of its common stock at an exercise price of $2.34 per share.  Such options vested over a one-year period in four equal quarterly amounts beginning on April 22, 2015, subject to continued service on the Board.

During the three month period ended June 30, 2015, the Company's Executive Vice President exercised a stock option to purchase 150,000 shares of the Company's common stock at an exercise price of $0.90 per share.  The option was exercised on a cashless (net exercise) basis by delivery to the Company of 60,000 shares of common stock resulting in 90,000 net shares issued to the Company's Executive Vice President with respect to such option exercise.  In addition, during the three month period ended June 30, 2015, a consultant to the Company exercised a stock option to purchase 50,000 shares of the Company's common stock at an exercise price of $0.90 per share.  The option was exercised on a cashless (net exercise) basis by delivery to the Company of 19,651 shares of common stock resulting in 30,349 net shares issued to the consultant with respect to such option exercise.

The fair value of each option grant on the date of grant is estimated using the Black-Scholes option-pricing model.  On the date of grant, the following weighted average assumptions were utilized for options granted during the six months ended June 30, 2015 (no stock options were granted during the six month period ended June 30, 2016):

The following table presents information relating to all stock options outstanding and exercisable at June 30, 2016:

The Company recorded stock-based compensation related to stock option grants of $0 and $74,000 for the three months ended June 30, 2016 and June 30, 2015, respectively.  The Company recorded stock based compensation related to stock option grants of $12,000 and $174,000 for the six months ended June 30, 2016 and June 30, 2015.  The Company had no unrecognized stock-based compensation cost as of June 30, 2016.  The aggregate intrinsic value of options exercisable at June 30, 2016 was $3,312,950.

Warrants

As of June 30, 2016, the following are the outstanding warrants to purchase shares of the Company's common stock:

All of the aforementioned warrants were issued to Recognition Interface, LLC in connection with the Company's acquisition of the Mirror Worlds Patent Portfolio (see Note I[2]).