Stock-Based Compensation

12 Months Ended

Dec. 31, 2014

Stock based Compensation

Stock-based Compensation

Note 14—Stock-Based Compensation

In 2008, the Company adopted the 2008 Long-Term Incentive Plan ("2008 LTIP"), which was approved by the Company's stockholders. The 2008 LTIP replaced the Company's 1996 Long-Term Incentive Plan ("1996 LTIP") and 1996 Stock Option Plan ("Stock Option Plan"), which have expired and are no longer effective except as to outstanding awards. The 2008 LTIP permits the grant of non-qualified and incentive stock options, stock appreciation rights, full value awards and cash incentive awards to the Company's directors, certain officers, employees and consultants for up to 2,000,000 shares of common stock. Option awards are generally granted with an exercise price equal to the market price of the Company's common stock at the date of grant and may have vesting periods ranging from immediate vesting to 5 years and have 10-year contractual terms.

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. Expected volatilities are based on historical volatilities of the Company's common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

There were no options granted during 2014 and 2013. The Company recorded $11 thousand and $45 thousand of stock-based compensation expense for 2014 and 2013, respectively.

A summary of the activity in the plans for the years ended December 31, 2014 and 2013 follow:

	2008 LTIP
	Number Outstanding		Weighted Average Exercise Price
Outstanding at January 1, 2014		93,750	$	4.94
Forfeited or expired during 2014		—		—
Outstanding at December 31, 2014		93,750	$	4.94
Vested or expected to vest at December 31, 2014		93,750	$	4.94
Exercisable at December 31, 2014		93,750	$	4.94

	1996 and 2008 LTIP					Stock Option Plan					Total
	Number Outstanding			Weighted Average Exercise Price		Number Outstanding			Weighted Average Exercise Price		Number Outstanding			Weighted Average Exercise Price
Outstanding at January 1, 2013		173,750		$	6.19		1,428		$	10.49		175,178		$	6.23
Forfeited or expired		(80,000	)		7.65		(1,428	)		10.49		(81,428	)		7.70
Outstanding at December 31, 2013		93,750		$	4.94		—		$	—		93,750		$	4.94
Vested or expected to vest		93,750		$	4.94		—		$	—		93,750		$	4.94
Exercisable at December 31, 2013		78,750		$	4.94		—		$	—		78,750		$	4.94

There were no options exercised during 2014 and 2013. As of December 31, 2014, there was no unrecognized compensation cost related to nonvested stock options granted under the plan. Options outstanding and options exercisable had no intrinsic value and had a weighted average remaining contractual term of 4.1 years at December 31, 2014.