Restricted Stock, Stock Options and Other Stock Plans

12 Months Ended

Dec. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Restricted Stock, Stock Options and Other Stock Plans

12. RESTRICTED STOCK, STOCK OPTIONS AND OTHER STOCK PLANS

On December 14, 2004 the Company adopted the 2004 Long-Term Compensation Plan (the “Plan”). The Plan provides for the issuance of stock options, stock appreciation rights, or SARs, restricted stock, deferred stock, dividend equivalents, bonus stock and awards in lieu of cash compensation, other stock-based awards and performance awards. Any shares issued under the Plan typically vest over service periods that range from one to five years. Stock options issued under the plan expire 10 years from the date they are granted.

The Plan provided an initial authorization of 2.5 million shares of Class A common stock for issuance and allows an automatic annual increase equal to the lesser of (i) 3% of the Class A common stock outstanding (ii) 750,000 shares or (iii) such lesser amount as may be determined by the Company’s board of directors. On April 27, 2012, the Company authorized an increase in the number of shares of our Class A common stock reserve to 7.1 million. On June 22, 2012, the Company’s stockholders approved the Amended and Restated 2004 Long-Term Incentive Compensation Plan, including an increase in the reserve, with an automatic annual increase on January 1 of each successive year of the lesser of (i) 3% of the Class A Common Stock outstanding, or (ii) 750,000 shares. As of December 31, 2013, there were 1.9 million shares available for issuance under the Plan (as amended).

The fair value of each option award is calculated on the date of grant using the Black-Scholes option pricing model and certain subjective assumptions. Expected volatilities are calculated based on our historical trading activities. We estimate forfeitures using a weighted average historical forfeiture rate. Our estimates of forfeitures will be adjusted over the requisite service period based on the extent to which actual forfeitures differ, or are expected to differ, from their estimate. The risk-free rate for the periods is based on the U.S. Treasury rates in effect at the time of grant. The expected term of options is based on the simplified method which assumes that the option will be exercised midway between the vesting date and the contractual term of the option. The Company is able to use the simplified method as the options qualify as “plain vanilla” options as defined by ASC 718 – Stock Compensation. The following table summarizes the assumptions used to calculate the fair value of options during 2013 and 2012.

	2013			2012
Weighted average fair value of options granted	$	1.46		$	1.26
Dividend yields		—			—
Expected volatility		101.4%-136.8	%		106.3%-165.6	%
Weighted average expected volatility		101.99	%		137.00	%
Risk free interest rates		1.84	%		0.78	%
Weighted average expected term (in years)		6.25			6.25

The following table summarizes information about stock option activity:

	Shares			Weighted Average Exercise Price
Outstanding at January 1, 2012		764		$	0.96
Granted		140			1.81
Exercised		—			—
Forfeited or Expired		(1	)		1.00
Outstanding at December 31, 2012		903		$	1.09
Granted		280			1.81
Exercised		(2	)		1.00
Forfeited or Expired		—			—
Outstanding at December 31, 2013		1,181		$	1.26
Exercisable at December 31, 2013		746		$	0.99

As of December 31, 2013 and 2012, the weighted-average remaining contractual term of unexercised stock options was 7.2 years and 7.3 years, respectively.

A summary of the Company’s restricted share activity is presented below:

	Shares			Weighted Average Exercise Price
Restricted outstanding at January 1, 2012		963		$	1.31
Granted		706			1.73
Vested		(615	)		1.36
Forfeited or Expired		(4	)		1.31
Outstanding at December 31, 2012		1,050		$	1.56
Granted		—			—
Vested		(388	)		1.48
Forfeited or Expired		(15	)		1.81
Outstanding at December 31, 2013		647		$	1.60

As of December 31, 2013 and 2012, there was $0.8 million and $1.0 million, respectively, of unrecognized compensation cost related to stock options and restricted stock issuances granted under the Plan. The Company intends to issue new shares of its common stock upon vesting of restricted stock grants or the exercise of stock options.