Restricted Stock Units

During the three months ended March 31, 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 three months ended March 31, 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 for the three months ended March 31, 2017.  There was no restricted stock unit compensation expense for the three months ended March 31, 2016.

The Company has an aggregate of $1,572,000 of unrecognized restricted stock unit compensation expense as of March 31, 2017 to be expensed over a weighted average period of 2.1 years.

All of the Company's 920,375 outstanding restricted stock units have dividend equivalent rights.

Stock Options

There were no stock option grants during the three months ended March 31, 2017 and March 31, 2016.

The following table presents information relating to all stock options outstanding and exercisable at March 31, 2017:

The Company recorded stock-based compensation related to stock option grants of $0 and $12,000 for the three months ended March 31, 2017 and March 31, 2016, respectively.

The Company had no unrecognized stock-based compensation cost as of March 31, 2017.  The aggregate intrinsic value of options exercisable at March 31, 2017 was $7,541,050.

During the three months ended March 31, 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 three months ended March 31, 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.

During the three months ended March 31, 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 $55,250.  In addition, an aggregate of 22,655 shares and $6,045 (Chief Financial Officer – 5,563 shares and $6,045 and Executive Vice President – 17,092 shares) were delivered to fund payroll withholding taxes on exercise, resulting in net shares of 43,580 and 23,944 issued to the Chief Financial Officer and Executive Vice President, respectively, with respect to such option exercises.  In addition, during the three months ended March 31, 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.

Warrants

As of March 31, 2017, there were no outstanding warrants to purchase shares of the Company's common stock.

During the three months ended March 31, 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.