STOCKHOLDERS' EQUITY:

6 Months Ended

Jun. 30, 2014

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

7. STOCKHOLDERS’ EQUITY:

 

 Stock Repurchase Program

In January 2013, the Company’s board of directors authorized a repurchase of shares of the Company’s Class A and Class D common stock (the “January 2013 Repurchase Authorization”). Under the January 2013 Repurchase Authorization, the Company is authorized, but is not obligated, to repurchase up to $2.0 million worth of its Class A and/or Class D common stock. Subsequently, in May 2013, the Company’s board of directors authorized a further $1.5 million worth of stock repurchases (the “May 2013 Repurchase Authorization”). Thus, the aggregate amount authorized between the January 2013 Repurchase Authorization and the May 2013 Repurchase Authorization was $3.5 million. As of March 31, 2014, the Company had $57,000 remaining between the two authorizations with respect to its Class A and D common stock. Repurchases may be made from time to time in the open market or in privately negotiated transactions in accordance with applicable laws and regulations. The timing and extent of any repurchases will depend upon prevailing market conditions, the trading price of the Company’s Class A and/or Class D common stock and other factors, and subject to restrictions under applicable law. The Company executes upon the stock repurchase program in a manner consistent with market conditions and the interests of the stockholders, including maximizing stockholder value. During the three and six months ended June 30, 2014, the Company did not repurchase any Class A Common Stock or Class D Common Stock. During the three months ended June 30, 2013, the Company repurchased 1,166,300 shares of Class D common stock in the amount of $2,673,723 at an average price of $2.29 per share and 24,419 shares of Class A common stock in the amount of $57,306 at an average price of $2.35 per share. During the six months ended June 30, 2013, the Company repurchased 2,118,274 shares of Class D common stock in the amount of $4,188,625 at an average price of $1.98 per share and 31,569 shares of Class A common stock in the amount of $68,331 at an average price of $2.16 per share.

 Stock Option and Restricted Stock Grant Plan

A stock option and restricted stock plan (the “2009 Stock Plan”) was approved by the stockholders at the Company’s annual meeting on December 16, 2009.  The Company had the authority to issue up to 8,250,000 shares of Class D common stock under the 2009 Stock Plan.  After giving effect to the prior issuances under the 2009 Stock Plan, approximately 5,000,000 shares remained available for issuance as of September 2013. On September 26, 2013, the board of directors adopted, and our stockholders approved on November 14, 2013, certain amendments to and restatement of the 2009 Stock Plan (the “Amended and Restated 2009 Stock Plan”). The amendments under the Amended and Restated 2009 Stock Plan primarily affected (i) the number of shares with respect to which options and restricted stock grants may be granted under the 2009 Stock Plan and (ii) the maximum number of shares that can be awarded to any individual in any one calendar year. The Amended and Restated 2009 Stock Plan increased the authorized plan shares remaining available for grant to 7,000,000 shares of Class D common stock after giving effect to the issuances prior to the amendment. Prior to the amendment, under the 2009 Plan, in any one calendar year, the compensation committee could not grant to any one participant options to purchase, or grants of, a number of shares of Class D common stock in excess of 1,000,000.  Under the Amended and Restated 2009 Stock Plan, this limitation was eliminated. The purpose of eliminating this limitation is to provide the compensation committee with maximum flexibility in setting executive compensation. As of June 30, 2014, 6,943,950 shares of Class D Common Stock were available for grant under the Amended and Restated 2009 Stock Plan.

Stock-based compensation expense for the three months ended June 30, 2014 and 2013, was $65,000 and $47,000, respectively, and for the six months ended June 30, 2014 and 2013, was $110,000 and $90,000, respectively.

The Company did not grant stock options during the six months ended June 30, 2014 and 2013, respectively.

Transactions and other information relating to stock options for the six months ended June 30, 2014, are summarized below:

	Number of Options		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (In Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2013		4,300,000	$	7.46				—
Grants		—	$	—
Exercised		92,000	$	1.36
Forfeited/cancelled/expired		25,000	$	16.92
Balance as of June 30, 2014		4,183,000	$	7.54		2.41	$	7,574,683
Vested and expected to vest at June 30, 2014		4,183,000	$	7.54		2.41	$	7,574,683
Unvested at June 30, 2014		—	$	—		—	$	—
Exercisable at June 30, 2014		4,183,000	$	7.54		2.41	$	7,574,683

The aggregate intrinsic value in the table above represents the difference between the Company’s stock closing price on the last day of trading during the six months ended June 30, 2014, and the exercise price, multiplied by the number of shares that would have been received by the holders of in-the-money options had all the option holders exercised their options on June 30, 2014. This amount changes based on the fair market value of the Company’s stock. The number of options that were exercised during the three and six months ended June 30, 2014 was 92,040. No options were exercised during the three and six months ended June 30, 2013. The number of options that vested during the three and six months ended June 30, 2014, were 75,300 and the number of options that vested during the three and six months ended June 30, 2013, were 108,725. The stock option weighted-average fair value per share was $2.65 at June 30, 2014.

The Company granted 56,050 shares of restricted stock during the three and six months ended June 30, 2014, and granted 109,645 shares of restricted stock during the three and six months ended June 30, 2013. These restricted shares were issued to the Company’s non-executive directors as a part of their 2013 and 2014 annual compensation packages. Each of the five non-executive directors received 11,210 shares of restricted stock or $50,000 worth of restricted stock based upon the closing price of the Company’s Class D shares on June 16, 2014 and 21,929 shares of restricted stock or $50,000 worth of restricted stock based upon the closing price of the Company’s Class D shares on June 14, 2013. Both of the grants vest over a two year period in equal 50% installments.

Transactions and other information relating to restricted stock grants for the six months ended June 30, 2014, are summarized below:

	Shares		Average Fair Value at Grant Date
Unvested at December 31, 2013		130,000	$	2.11
Grants		56,000	$	4.46
Vested		(55,000)	$	2.28
Forfeited/cancelled/expired		—	$	—
Unvested at June 30, 2014		131,000	$	3.05

The restricted stock grants were included in the Company’s outstanding share numbers on the effective date of grant. As of June 30, 2014, $371,000 of total unrecognized compensation cost related to restricted stock grants is expected to be recognized over the weighted-average period of 13 months.