Stock-Based Compensation

3 Months Ended

Mar. 31, 2017

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

Stock-Based Compensation

Stock-Based Compensation

Stock-based compensation for continuing operations consisted of the following:

	Three Months Ended
	March 31,
(In millions)	2017		2016
Stock-based compensation expense	$	—	$	0.2

We have stock-based compensation awards consisting of stock options, restricted stock and stock appreciation rights under four plans (collectively, the “Stock Plans”) which are described in detail in our Annual Report on Form 10-K for the year ended December 31, 2016. Stock-based compensation was less than $0.1 million for the period ending March 31, 2017, and 0.2 million for the period ending March 31, 2016. As of March 31, 2017, there were 185,755 shares available for grant under the 2011 Incentive Plan. No further shares were available for grant under any other stock incentive plan.

Stock Options

The following table summarizes our stock option activity:

	Stock Options		Weighted Average Exercise Price
Outstanding December 31, 2016	286,707		$	77.50
Granted	—		—
Exercised	—		—
Canceled	(7,712	)	123.97
Forfeited	(4,147	)	14.00
Outstanding March 31, 2017	274,848		$	76.83
Exercisable as of March 31, 2017	231,858		$	88.21

The outstanding options are non-qualified and generally have a term of ten years. The following table summarizes our weighted average assumptions used in the Black-Scholes valuation of stock options:

	Three Months Ended
	March 31,
	2017		2016
Volatility	44.3	%	41.0	%
Risk-free interest rate	1.6	%	1.8	%
Expected life (months)	72		72
Dividend yield	—		—

As of March 31, 2017, there was $0.2 million of total unrecognized compensation expense related to non-vested stock options granted under our Stock Plans. That expense is expected to be recognized over a weighted average period of 1.7 years.

Restricted Stock

The following table summarizes our restricted stock activity:

	Restricted Stock		Weighted Average Grant Date Fair Value Per Share
Nonvested as of December 31, 2016	79,926		$	20.63
Granted	48,000		7.03
Grant adjustments	(324	)	38.00
Vested	(2,071	)	17.57
Forfeited	—		—
Nonvested as of March 31, 2017	125,531		$	15.44

The cost of the awards is determined using the fair market value of the Company’s common stock on the date of the grant, and compensation is recognized on a straight-line basis over the requisite vesting period.

As of March 31, 2017, there was $1.0 million of total unrecognized compensation expense related to non-vested restricted stock granted under our Stock Plans. That expense is expected to be recognized over a weighted average period of 3.5 years.

Stock Appreciation Rights

During the three months ended March 31, 2017 we did not grant any Stock Appreciation Rights (“SARs”). Outstanding SARs expire 5 years after the grant date and only vest when both stock price and revenue performance conditions specified by the terms of the SARs are met. Additionally, under the terms of the 2015 SARs, any cash payments to an individual under a 2015 vested SAR would reduce any cash payment received under any earlier SAR grant pertaining to that individual, if and when such earlier SAR vests. For the stock price condition, based on the terms of the awards, 50% of the SARs may vest if the 30-day average GlassBridge stock price reaches $80 per share or more by December 31, 2017 and the remaining 50% of the SARs could vest if the 30-day average GlassBridge stock price reaches $120 per share or more by December 31, 2017. Additionally, for the revenue performance condition, as a condition necessary for vesting, the net revenue of the Nexsan Business must reach certain specified stretch targets by December 31, 2017. If exercised, the SARs require a cash payment to the holder in an amount based on the GlassBridge stock price at the date of exercise as compared to the stock price at the date of grant. As of March 31, 2017 and December 31, 2016, we had 0.2 million SARs outstanding. We have not recorded any related compensation expense based on the applicable accounting rules. We will continue to assess these SARs each quarter to determine if any expense should be recorded.