Stock-Based Compensation

9 Months Ended

Sep. 30, 2014

The Company recognizes stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation-Stock Based Compensation. Stock-based compensation expense was $925 and $984 for the three months ended September 30, 2014 and September 30, 2013, respectively, and $2,827 and $2,988 for the nine months ended September 30, 2014 and September 30, 2013, respectively. As of September 30, 2014, there was $2,011 of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 2 years. As of September 30, 2014, there was $4,720 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 2.64 years.

The Company granted 0 and 265 restricted stock awards to employees under the terms of the Amended and Restated 2006 Stock Incentive Plan during the three and nine months ended September 30, 2014. The Company granted 20 and 266 restricted stock awards to employees under the terms of the Amended and Restated 2006 Stock Incentive Plan during the three and nine months ended September 30, 2013. The restricted stock awards vest ratably over four years from the date of grant subject to the recipient remaining employed through the applicable vesting dates. Compensation expense for restricted stock awards is measured at fair value on the date of grant based on the number of shares granted and the quoted market closing price of the Company’s common stock. Such value is recognized as expense over the vesting period of the award, net of estimated forfeitures.

The Company granted 50 and 107 stock options to employees under the terms of the Amended and Restated 2006 Stock Incentive Plan during the three and nine months ended September 30, 2014 and 68 and 138 during the three and nine months ended September 30, 2013, respectively.

The fair value of stock options granted during the nine months ended September 30, 2014 and 2013 was estimated as of the date of grant using the Black-Scholes option-pricing model. The weighted-average fair value per share for all options granted during the nine months ended September 30, 2014 and 2013 was $5.30 and $5.45, respectively. The weighted-average assumptions used to value options as of their grant date were as follows:




	Nine Months Ended		Nine Months Ended
	September 30, 2014		September 30, 2013
Risk-free interest rate	1.28	%	1.06	%
Expected volatility	47.49	%	50.89	%
Expected life (in years)	4.84		4.24
Dividend yield	0	%	0	%

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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