Equity (Deficit)

6 Months Ended

Jun. 30, 2013

Equity (Deficit)

Equity (Deficit)

16.   Equity (Deficit)

Equity Incentive Plans

In April 2009, the Company adopted the 2009 Equity Incentive Plan (the “Equity Plan”) pursuant to which awards of the Company’s common stock may be made to officers, directors, employees, consultants and agents of the Company and its subsidiaries.  The Company recognizes stock-based compensation costs using a graded vesting attribution method whereby costs are recognized over the requisite service period for each separately vesting portion of the award.

The following table summarizes the status of the Company’s restricted stock grants issued under the Equity Plan at June 30, 2013 and changes during the six months then ended:

Restricted Stock Grants	Number of Shares		Weighted Average Grant Date Fair Value Per Share
Outstanding at December 31, 2012	823,500		$	5.67
Granted during the period	152,000		1.77
Restrictions lifted during the period	(20,400	)	7.27
Forfeited during the period	—		—
Outstanding at June 30, 2013	955,100		$	5.02

In connection with performance and reductions in force, the Company’s Compensation Committee and Board of Directors approved a 10% annual salary reduction effective June 1, 2013 for certain officers of the Company. In conjunction with the salary reduction, expected to be in effect for one year, the Compensation Committee approved a grant of an aggregate of 149,500 restricted shares to the officers effective June 1, 2013. The stock will vest in one year from the grant date. In addition, 2,500 shares of restricted stock were granted to a new employee hired during the period.  One third of the restricted stock granted to the employee vests on each of the first, second and third anniversaries of the grant dates, provided the employee continues to serve the Company at that time.  Restrictions were lifted on 8,000 shares during the period on the first anniversary of a grant made to an officer hired during 2012 and restrictions were lifted on 12,400 shares related to an employee’s retirement.

For the six months ended June 30, 2013 the Company recognized approximately $0.8 million of compensation expense related to outstanding restricted stock grants.  The Company expects to recognize additional compensation expense related to these awards of approximately $1.5 million over the next 33 months.

The following table summarizes the status of the Company’s stock option grants issued under the Equity Plan at June 30, 2013 and changes during the six months then ended:

Equity Plan Options	Number of Shares	Weighted Average Exercise Price Per Share
Outstanding at December 31, 2012	118,810	$	8.01
Granted during period	—	—
Forfeited or expired during period	—	—
Exercised during period	—	—
Outstanding at June 30, 2013	118,810	8.01
Exercisable at end of period	118,810	8.01
Granted and vested	118,810	8.01

Also, pursuant to the Equity Plan, the Company’s board of directors adopted the Non-Employee Director’s Deferred Compensation and Equity Award Plan (the “Deferred Compensation Plan”).  Pursuant to the Deferred Compensation Plan the non-employee directors receive a portion of their compensation in the form of Restricted Stock Units (“RSUs”) issued under the Equity Plan. The RSUs vest on the first anniversary of the grant date and each vested RSU entitles the director to receive one unrestricted share of common stock upon the termination of the director’s board service.

The following table summarizes the status of the RSU grants issued under the Deferred Compensation Plan at June 30, 2013 and changes during the six months then ended:

Restricted Stock Units	Number of Underlying Shares	Weighted Average Grant Date Fair Value Per Share
Outstanding at December 31, 2012	143,995	$	7.21
Granted during the period	370,368	1.62
Restrictions lifted during the period	—	—
Forfeited during the period	—	—
Outstanding at June 30, 2013	514,363	$	3.18

The RSUs granted during the period are a portion of the annual compensation paid to the directors.

For the six months ended June 30, 2013 the Company recognized approximately $0.2 million of compensation expense related to the RSU grants.  The Company expects to recognize additional compensation expense related to these awards of approximately $0.5 million over the next 11 months.