INCENTIVE AWARD PLAN

12 Months Ended

Dec. 31, 2014

Incentive Award Plan [Abstract]

INCENTIVE AWARD PLAN

11. INCENTIVE AWARD PLAN

The Company adopted an incentive award plan on July 7, 2009 (the “Incentive Award Plan”) that provides for the grant of equity awards to its employees, directors and consultants and those of the Company’s affiliates. The Incentive Award Plan authorizes the grant of non-qualified and incentive stock options, restricted stock awards, restricted stock units, stock appreciation rights, dividend equivalents and other stock-based awards or cash-based awards. The Company has reserved 2,000,000 shares of common stock for stock grants pursuant to the Incentive Award Plan.

Pursuant to the Company’s Amended and Restated Independent Directors Compensation Plan, which is a sub-plan of the Incentive Award Plan (the “Directors Plan”), the Company granted each of its independent directors an initial grant of 5,000 shares of restricted stock (the “initial restricted stock grant”) following the Company’s raising of the $2,000,000 minimum offering amount in the Offering on November 12, 2009. Each new independent director that subsequently joined the board of directors received the initial restricted stock grant on the date he or she joined the board of directors. In addition, until the Company terminated the Offering on February 7, 2013, on the date of each of the Company’s annual stockholders meetings at which an independent director was re-elected to the board of directors, he or she may have received 2,500 shares of restricted stock. The restricted stock vests one-third on the date of grant and one-third on each of the next two anniversaries of the grant date. The restricted stock will become fully vested and non-forfeitable in the event of an independent director’s termination of service due to his or her death or disability, or upon the occurrence of a change in control of the Company.

For the years ended December 31, 2014 and 2013, the Company recognized compensation expense of $18,000 and $41,000, respectively, related to restricted common stock grants to its independent directors, which is included in general and administrative expense in the Company’s accompanying consolidated statements of operations. Shares of restricted common stock have full voting rights and rights to dividends.

As of December 31, 2014, all of the compensation expense related to non-vested shares of restricted common stock has been recognized. As of December 31, 2013, there was $18,000 of total unrecognized compensation expense related to non-vested shares of restricted common stock representing 3,333 unvested shares with a fair value of $30,000. During the year ended December 31, 2014, there were no restricted stock grants issued.

A summary of the changes in restricted stock grants for the years ended December 31, 2014 and 2013 is presented below:

			Weighted Average
	Restricted Stock		Grant Date
	(Number of Shares)		Fair Value
Balance - December 31, 2012		10,000	$	9.00
Granted		-		-
Vested		6,667		9.00
Balance - December 31, 2013		3,333	$	9.00
Granted		-		-
Vested		3,333		9.00
Balance - December 31, 2014		-	$	-