ProPhase Labs, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Stockholders' Equity and Stock Compensation (Tables)

Stockholders' Equity and Stock Compensation (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Stock Options and Warrants Fair Value

Presented below is a summary of the terms of the grant of options and Warrants:

	Year Ended December 31,
	2017		2016		2015
Number of options granted		625,000		-		-
Number of Warrants granted		-		-		51,000
Vesting period		3-4 years		-		none
Maximum term of option or Warrants from date of grant		7 years		-		3 years
Weighted average exercise price per share	$	2.01		-	$	1.35
Weighted average fair value per share of options and
Warrants granted during the year	$	0.76		-	$	0.26

Summary of Assumptions Used In Determining Fair Value of Stock Options and Warrants

Presented below is a summary of assumptions used in determining the fair value of the stock options and Warrants at the date of grant:

	Year Ended December 31,
	2017			2016		2015
Expected option or Warrant life		4.5 - 4.75 years			-		3 years
Weighted average risk free rate		1.62% - 1.81	%		-		0.88	%
Dividend yield		0	%		-		0	%
Expected volatility		38.59% - 44.51	%		-		26.42	%

Schedule of Stock Options Granted

A summary of the status of our stock options granted pursuant the 2010 Plan as of December 31, 2017, 2016 and 2015 and changes during the years then ended is presented below (in thousands, except per share data):

	Year Ended December 31,
	2017					2016					2015
				Weighted Average					Weighted Average					Weighted Average
	Shares			Exercise Price		Shares			Exercise Price		Shares			Exercise Price
Options outstanding - beginning of year		1,699		$	1.20		1,713		$	1.21		1,740		$	1.40
Granted		625			2.01		-					-			-
Exercised		(1,332	)		1.11							-			-
Cancelled		(13	)		1.00		(14	)		1.44		(27	)		13.50
Options outstanding - end of year		979		$	1.81		1,699		$	1.20		1,713		$	1.21

Options granted and subject to future vesting		618		$	2.01		-		$	-		4		$	1.48

Exercisable, at end of year		361					1,699					1,709
Available for grant		121					734					20

Summarizes Information About Stock Options Outstanding and Stock Options Exercisable

The following table summarizes information about stock options outstanding and stock options exercisable at December 31, 2017 (in thousands, except remaining life and per share data):

	Options Outstanding and Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price Per Share
$1.17 - $1.36		90		1.13	$	1.20
$1.36 - $1.65		265		2.23	$	1.57
$2.00 - $2.15		6		6.75	$	2.15
Total		361			$	1.49