Stock Based Compensation

6 Months Ended

Jun. 30, 2014

Stock Based Compensation [Abstract]

Stock Based Compensation

NOTE 9: STOCK BASED COMPENSATION

The Company has a shareholder approved long-term incentive plan (the "LTIP") to assist the Company and its affiliates in attracting, motivating and retaining selected individuals to serve as employees, directors, consultants and advisors of the Company and its affiliates by providing incentives to such individuals through the ownership and performance of the Company's common stock. There are 1.1 million shares of common stock authorized for issuance under the LTIP. Shares available for grant under the LTIP may be either authorized, but unissued shares or shares that have been reacquired by the Company and designated as treasury shares. As of June 30, 2014 and December 31, 2013, 353,128 and 57,923 shares of the Company's common stock were available for grant under the LTIP. The LTIP permits the issuance by the Company of awards in the form of stock options, stock appreciation rights, restricted stock and restricted stock units and performance shares. The exercise price per share of the Company's common stock purchasable under any stock option or stock appreciation right may not be less than 100% of the fair market value of one share of common stock on the date of grant. The term of any stock option or stock appreciation right may not exceed ten years. The LTIP also provides plan participants with a cashless mechanism to exercise their stock options. Issued restricted stock, stock options and restricted stock units are subject to vesting restrictions.

Restricted Stock Awards

Stock-based compensation expense for restricted stock awards was $0.5 million and $0.5 million for the six months ended June 30, 2014 and 2013, respectively. Restricted stock awards are amortized over their respective vesting periods of two or three years. The Company records stock-based compensation for grants of restricted stock awards on a straight-line basis.

The following table summarizes the restricted common stock activity for the six months ended June 30, 2014:

	June 30, 2014
				Weighted
				Average Fair
	Shares			Value
Balance - nonvested at January 1, 2014	409,889		$	10.33
Granted	22,508			8.35
Vested	(140,426	)		10.36
Forfeited	(134,714	)		10.53
Balance - nonvested at June 30, 2014	157,257		$	9.67

The total grant-date fair value of restricted stock vested for the six months ended June 30, 2014 was $1.5 million. As of June 30, 2014, $1.3 million of total unrecognized compensation expense related to restricted common stock is expected to be recognized over a weighted average period of approximately 2 years.

Stock Options

The following tables summarize stock option activity for the six months ended June 30, 2014, along with stock options exercisable at the end of the period:

	For the six months Ended
	June 30, 2014
					Weighted
				Weighted	Average
				Average	Contractual
Options	Shares			Exercise Price	Life (Years)
Outstanding - Beginning of period	499,542		$	11.78
Forfeited or expired	(137,667	)		11.19
Outstanding - End of period	361,875		$	12.00	7
Vested and Expected to Vest at June 30, 2014	347,400
Exercisable at June 30, 2014	237,783

The fair value of the stock-based awards was estimated using the Black-Scholes model. No options were granted in the second quarter 2014. Effective the third quarter 2013, the Company's dividend yield is zero as it has discontinued its dividends on common stock.

As of June 30, 2014, $0.1 million of total unrecognized compensation expense related to stock options awards is expected to be recognized over a weighted average period of approximately 2 years.

The following table sets forth the total stock-based compensation expense resulting from stock options and restricted stock granted to employees that are included in the Company's condensed consolidated statements of operations for the three months ended and six months ended June 30, 2014 and 2013:

($ in thousands)	For the three months ended June 30,				For the six months ended June 30,
Stock-Based Compensation Expense	2014		2013		2014		2013
Cost of services and products	$	-	$	3	$	-	$	6
Selling, general and administrative expenses		201		466		507		681
	$	201	$	469	$	507	$	687