RMG Networks Holding Corp - 10-Q filing on 2016-11-03

Equity Incentive Plan	9 Months Ended
Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	5. Equity Incentive Plan On April 11, 2016, the Company cancelled the 850,000 vested options which were granted on August 13, 2013 and held by the Company’s chairman of the board. In addition, on April 11, 2016, the Company granted new equity awards under the Company’s 2013 Equity Incentive Plan to senior executives in two tranches, tranche A and tranche B. The 960,000 tranche A stock options have a vesting base date of the employee’s start date, while the 740,000 tranche B stock options have a vesting base date of April 11, 2016. All the new options have an exercise price of $1.00 and a three year service requirement with 1/3 of the options vesting on the anniversary of the vesting base date, except in the case of the tranche A options granted to the Company’s chief executive officer, which vest monthly over a 36-month period beginning on July 22, 2014. In addition, all the new stock options have a 10-year term and the Black Scholes model was used to measure the fair value of the stock-based compensation awards. Also on April 11, 2016, the Company cancelled the 500,000 vested and unvested options that were granted on July 22, 2014 to the Company’s chief executive officer in connection with the issuance of the chief executive officer’s new tranche A and tranche B options. For accounting purposes, the transaction was treated as a modification of the original options resulting in $23 thousand of amortization expense for the catch-up adjustment on the modification date. The amortization expense associated with stock options during the three months ended September 30, 2016 and 2015 were $0.1 million and $0.4 million, respectively. The amortization expense associated with stock options during the nine months ended September 30, 2016 and 2015 were $0.8 million and $1.2 million, respectively. The unamortized cost of the options at September 30, 2016 was $1.1 million, to be recognized over a weighted-average remaining life of 1.8 years. At September 30, 2016 and December 31, 2015, 929,166 and 916,667 shares of options were exercisable, respectively. In addition, there was no intrinsic value associated with the options as of September 30, 2016. The weighted-average remaining contractual life of the options outstanding is 8.3 years.

Equity Incentive Plan

9 Months Ended

Sep. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

5. Equity Incentive Plan

On April 11, 2016, the Company cancelled the 850,000 vested options which were granted on August 13, 2013 and held by the Company’s chairman of the board. In addition, on April 11, 2016, the Company granted new equity awards under the Company’s 2013 Equity Incentive Plan to senior executives in two tranches, tranche A and tranche B. The 960,000 tranche A stock options have a vesting base date of the employee’s start date, while the 740,000 tranche B stock options have a vesting base date of April 11, 2016. All the new options have an exercise price of $1.00 and a three year service requirement with 1/3 of the options vesting on the anniversary of the vesting base date, except in the case of the tranche A options granted to the Company’s chief executive officer, which vest monthly over a 36-month period beginning on July 22, 2014. In addition, all the new stock options have a 10-year term and the Black Scholes model was used to measure the fair value of the stock-based compensation awards. Also on April 11, 2016, the Company cancelled the 500,000 vested and unvested options that were granted on July 22, 2014 to the Company’s chief executive officer in connection with the issuance of the chief executive officer’s new tranche A and tranche B options. For accounting purposes, the transaction was treated as a modification of the original options resulting in $23 thousand of amortization expense for the catch-up adjustment on the modification date.

The amortization expense associated with stock options during the three months ended September 30, 2016 and 2015 were $0.1 million and $0.4 million, respectively. The amortization expense associated with stock options during the nine months ended September 30, 2016 and 2015 were $0.8 million and $1.2 million, respectively. The unamortized cost of the options at September 30, 2016 was $1.1 million, to be recognized over a weighted-average remaining life of 1.8 years. At September 30, 2016 and December 31, 2015, 929,166 and 916,667 shares of options were exercisable, respectively. In addition, there was no intrinsic value associated with the options as of September 30, 2016. The weighted-average remaining contractual life of the options outstanding is 8.3 years.