Stock incentive plan and stock-based compensation

6 Months Ended

Jun. 30, 2015

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

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

Note 7. Stock incentive plan and stock–based compensation

Stock incentive plan

The Company’s board of directors established the 2012 Stock Incentive Plan (the “Plan”) on April 15, 2012, and the Company’s shareholders ratified the Plan at the annual meeting of the Company’s stockholders on May 30, 2012. The Company has 415,000 shares of Common Stock that are reserved to grant Options, Stock Awards and Performance Shares (collectively the “Awards”) to “Participants” under the Plan. The Plan is administered by the board of directors or the Compensation Committee of the board of directors, which determines the individuals to whom awards shall be granted as well as the type, terms and conditions of each award, the option price and the duration of each award.

 

 At the annual meeting of the stockholders of MGT held on September 27, 2013, stockholders approved an amendment to the Plan (the “Amended and Restated Plan”) to increase the amount of shares of Common stock that may be issued under the Amended and Restated Plan to 1,335,000 shares from 415,000 shares, an increase of 920,000 shares and to add a reload feature. 

Options granted under the Plan vest as determined by the Company’s Compensation and Nominations Committee and expire over varying terms, but not more than seven years from date of grant. In the case of an Incentive Stock Option that is granted to a 10% shareholder on the date of grant, such Option shall not be exercisable after the expiration of five years from the date of grant. No option grants were issued during the three and six months ended June 30, 2015, and 2014.

 

Issuance of restricted shares – directors, officers and employees

The restricted shares are valued using the closing market price on the date of grant, of which the share–based compensation expense is recognized over their vesting period. The unvested shares are subject to forfeiture if the applicable recipient is not a director, officer and/or employee of the Company at the time the restricted shares are to vest. 

A summary of the Company’s employee’s restricted stock as of June 30, 2015, is presented below:

	Number of shares		Weighted average grant date fair value
Non–vested at January 1, 2015		110,000	$	1.42
Granted		55,000		0.56
Vested		(59,500)		1.07
Forfeited		(28,000)		1.99
Non–vested at June 30, 2015		77,500	$	0.87

For the three and six months ended June 30, 2015 the Company has recorded $32 and $64, respectively, (2014: $123 and $216) in employee and director stock–based compensation expense, which is a component of selling, general and administrative expense in the condensed Consolidated Statement of Operations. 

 

In the three and six months ended June 30, 2015, and 2014, the Company did not allocate any stock–based compensation expense to non–controlling interest.

Unrecognized compensation cost

As of June 30, 2015, unrecognized compensation costs related to non–vested stock–based compensation arrangements was $29 (2014: $174), and is expected to be recognized over a weighted average period of 0.52 (2014: 1.21) years.

Stock–based compensation – non–employees

For the six months ended June 30, 2015 the Company granted and issued a total of 216,458 shares to non–employees for services rendered. The shares were recorded at $115 using the closing market value on respective dates of issuance. 

Subsequent to June 30, 2015, and through the date of filing the Quarterly Report on Form 10–Q, the Company granted and issued a total of 40,166 shares to non–employees for services rendered. The shares were recorded at $15 using the closing market value on respective dates of issuance  .

Warrants

  As of June 30, 2015 the Company had 1,020,825 warrants outstanding at weighted average exercise price of $3.47, and an intrinsic value of $nil.

 

As of June 30, 2015, all issued warrants are exercisable and expire through 2018.