The Company’s Board of Directors has determined that no further awards will be made pursuant to its 2003 stock option plan (the “2003 Plan”). As of March 31, 2015, options for 379,380 shares of common stock were vested and exercisable under the 2003 Plan, and 379,380 shares have been reserved for issuance under the 2003 Plan.

Under the Company’s 2013 Stock Incentive Plan, as amended (the “2013 Plan”), an aggregate of 3,000,000 shares of the Company’s common stock may be issued to officers, employees, non-employee directors and consultants of the Company and its affiliates. On May 11, 2015, the shareholders will vote on a second amendment to the 2013 Plan in which the number of shares that may be issued under the plan will be increased to 6,000,000. Our majority shareholder has advised us that it will vote in favor of the amendment; accordingly, we expect it to pass.

Awards under the 2013 Plan may be in the form of stock options, which may constitute incentive stock options, or non-qualified stock options, restricted shares, restricted stock units, performance awards, stock bonus awards, share appreciation rights and other stock-based awards. Stock options will be issued at an exercise price not less than 100% of the market value at the date of grant and expire no later than ten years after the date of grant. Stock awards typically vest over three years but vesting periods for non-employees may be longer or based on the achievement of performance goals.

Through March 31, 2015, 35,000 options and 2,220,499 restricted shares have been awarded, net of forfeitures, under the 2013 Plan. A total of 779,501 common shares are reserved for future issuance under the 2013 Plan (3,779,501 common shares after giving effect to the May 2015 amendment), of which 180,000 shares are approved but unissued as of March 31, 2015.

During the three months ended March 31, 2015, no options were issued, exercised, or forfeited and no options vested or expired. The total future compensation cost related to non-vested stock options is estimated to be nominal as of March 31, 2015. Options outstanding at March 31, 2015 had no intrinsic value.

Stock-based compensation expense recognized in the accompanying statements of operations for three months ended March 31, 2015 and 2014 was $0.5 million and $0.1 million, respectively.