Share-Based Payment Arrangements (Tables)
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12 Months Ended |
Dec. 31, 2016 |
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| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
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| Details of Stock Option Plan |
The following table summarizes the plans under which the Company granted equity compensation as of December 31, 2016: | | | | | | | | | | Name of Plan | | Shares
Authorized | | Shares Available
for Grant | | Shares
Outstanding | | Last Date for Grant
of Shares | FalconStor Software, Inc., 2016 Incentive Stock Plan | | 2,166,606 | | 1,779,170 | | 220,000 | | April 27, 2026 | FalconStor Software, Inc., 2016 Outside Directors Equity Compensation Plan | | 400,000 | | 380,000 | | 20,000 | | April 27, 2019 |
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| Schedule of Equity Awards Outstanding |
The following table summarizes the Company’s equity plans that have expired but that still have equity awards outstanding as of December 31, 2016: | | | | | | Name of Plan | | Shares Available for Grant | | Shares Outstanding | FalconStor Software, Inc., 2006 Incentive Stock Plan | | — | | 5,060,590 | FalconStor Software, Inc., 2013 Outside Directors Equity Compensation Plan | | — | | 20,200 | FalconStor Software, Inc., 2007 Outside Directors Equity Compensation Plan | | — | | 160,000 | FalconStor Software, Inc., 2000 Stock Option Plan | | — | | 147,500 |
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| Schedule of Stock Option Activity |
A summary of the Company’s stock option activity for 2016 is as follows: | | | | | | | | | | | | | | |
| | Number of
Options | | Weighted
Average
Price | | Weighted
Average
Remaining
Contractual
Life (Years) | | Aggregate
Intrinsic
Value | Options Outstanding at December 31, 2015 | | 4,855,941 |
| | $ | 3.53 |
| | 4.76 | | $ | 632,581 |
| Granted | | 870,000 |
| | $ | 1.27 |
| | | | | Exercised | | — |
| | $ | — |
| | | | | Forfeited | | (1,714,120 | ) | | $ | 2.65 |
| | | | | Expired | | (520,331 | ) | | $ | 5.05 |
| | | | | Options Outstanding at December 31, 2016 | | 3,491,490 |
| | $ | 3.18 |
| | 4.83 | | $ | — |
| Options Exercisable at December 31, 2016 | | 2,671,990 |
| | $ | 3.77 |
| | 3.47 | | $ | — |
| Options Expected to Vest after December 31, 2016 (1) | | 573,650 |
| | $ | 1.25 |
| | 9.29 | | $ | — |
| (1) Options expected to vest after December 31, 2016 reflect an estimated forfeiture rate | | |
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| Schedule of Share Based Compensation Recognized |
The Company recognized share-based compensation expense for all awards issued under the Company’s stock equity plans in the following line items in the consolidated statement of operations: | | | | | | | | | | | | Years ended December 31, | | | 2016 | | 2015 | Cost of revenue - Product | | $ | — |
| | $ | — |
| Cost of revenue - Support and Service | | 80,903 |
| | 98,776 |
| Research and development costs | | 1,653,336 |
| | 806,348 |
| Selling and marketing | | 241,481 |
| | 285,787 |
| General and administrative | | 352,498 |
| | 738,466 |
| | | $ | 2,328,218 |
| | $ | 1,929,377 |
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| Stock Based Compensation Expense - Restricted Stock |
A summary of the total stock-based compensation expense related to restricted stock awards and restricted stock units, which is included in the Company’s total share-based compensation expense for each respective year, is as follows: | | | | | | | | | | | | Years ended December 31, | | | 2016 | | 2015 | Directors, officers and employees | | $ | 598,549 |
| | $ | 827,055 |
| Non-employee consultants | | 96,237 |
| | — |
| | | $ | 694,786 |
| | $ | 827,055 |
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| Schedule of Restricted Stock Units Activity |
A summary of the Company’s restricted stock activity for 2016 is as follows: | | | | | | | Number of Restricted Stock Awards | Non-Vested at December 31, 2015 | | 3,116,400 |
| Granted | | 737,436 |
| Vested | | (565,511 | ) | Forfeited | | (1,151,525 | ) | Non-Vested at December 31, 2016 | | 2,136,800 |
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| Schedule of Share-based Compensation, Nonemployee |
A summary of the total stock-based compensation expense related to share-based awards granted to non-employee consultants, which is included in the Company’s total share-based compensation expense for each respective period, is as follows: | | | | | | | | | | | | Years ended December 31, | | | 2016 | | 2015 | Non-qualified stock options | | $ | (5,915 | ) | | $ | 73,539 |
| Restricted stock awards | | 96,237 |
| | — |
| | | $ | 90,322 |
| | $ | 73,539 |
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| Schedule of assumptions used to value share-based compensation |
In addition to the exercise and grant date prices of the awards, certain weighted average assumptions that were used to estimate the fair value of share-based payment grants in the respective periods are listed in the table below: | | | | | | | | Years ended December 31, | | | 2016 | | 2015 | Expected dividend yield | | 0% | | 0% | Expected volatility | | 55% | | 55 - 56% | Risk-free interest rate | | 1.29 - 1.36% | | 1.35 - 1.67% | Expected term (years) | | 5.5 | | 5.5 | Discount for post-vesting restrictions | | N/A | | N/A |
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