7. STOCK-BASED EMPLOYEE COMPENSATION

Effective December 21, 2012, in conjunction with the Company’s plan of reorganization and emergence from its bankruptcy proceeding all existing restricted stock and option plans were terminated.

On February 27, 2013, the Board of Directors authorized the Company’s 2013 Equity Incentive Plan (the “Incentive Plan”), which provides for the grant of non-statutory stock options and restricted shares to eligible employees and directors of the Company. The Incentive Plan authorizes the Company to issue up to 2,600,000 shares of Company’s common stock. The Company issues new shares upon the exercise of stock options. Options granted under the Plan generally expire no later than 10 years from the date of grant. The exercise price of any option granted to a 10% stockholder may be no less than 110% of the fair value of the Company’s common stock on the date of grant. As of December 31, 2013, 1,695,000 shares of the Company were available for issuance under the Incentive Plan.

Stock Options

The Company granted stock options to purchase approximately 850,000 shares of its common stock on February 27, 2013 under the Incentive Plan. The stock options were granted to an executive officer and members of the Board of Directors, at an exercise price of $0.26 per share (determined by the Board of Directors based upon the range of bid prices for the Company’s common stock on the grant date), and a grant date fair value of $151. These options become fully exercisable over a two year period (1/3 exercisable on the grant date, 1/3 exercisable 1 year after the grant date and the remaining 1/3 exercisable 2 years after the grant date, respectively) and expire on February 27, 2023.

The Company granted stock options to purchase approximately 69,000 shares of its common stock on August 29, 2013 under the Incentive Plan. These stock options were granted to certain employees, at an exercise price of $0.54 per share and a grant date fair value of $26. These stock options become fully exercisable over a two year period (1/3 exercisable on the grant date, 1/3 exercisable 1 year after the grant date and the remaining 1/3 exercisable 2 years after the grant date, respectively) and expire on August 29, 2023.

The fair values of options granted were estimated on the date of grant using the Black-Scholes Merton option pricing model based on the assumptions included in the table below. The fair value of the Company’s stock option awards is charged to expense over the vesting life of the underlying stock options using the straight line method. Expected volatility is based on the historical volatility of the Company’s common stock. The risk-free interest rate for periods within the contractual life of the stock option award is based on the yield of U.S. Treasury bonds on the grant date with a maturity equal to the expected term of the stock option. The expected life of stock option awards granted to employees and non-employee directors is based upon the “simplified” method for “plain vanilla” options described in SEC Staff Accounting Bulletin No. 107, as amended by SEC Staff Accounting Bulletin No. 110. Forfeiture rates are based on management’s estimates.

	Year ended December 31, 2013
Expected volatility		84%
Expected dividend yield		0.00%
Weighted average risk-free interest rate		1.05%
Expected life	5.50 years
Forfeiture rate		0%

The following table summarizes activity under the Company’s stock option plans for the years ended December 31, 2013, 2012, and 2011:

	Shares (In thousands)			Weighted Average Exercise Price			Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2011		290		$	14.29
Granted		—			—
Exercised		—			—
Forfeited, cancelled or expired		(290	)		14.29

Outstanding at December 31, 2011		—		$	—
Granted		—			—
Exercised		—			—
Forfeited, cancelled or expired		—			—

Outstanding at December 31, 2012		—		$	—
Granted		919			0.28
Exercised		—			—
Forfeited, cancelled or expired		(14	)		(0.54	)
Outstanding at December 31, 2013		905		$	0.28			9.1		$	374

Exercisable at December 31, 2013		306		$	0.28			9.1		$	124

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing price of our common stock on the date of determination for those awards that have an exercise price currently below the closing price.

Total stock-based compensation recorded for the year ended December 31, 2013 was $105 and is included in selling, general and administrative expenses. There was no stock-based compensation expense related to stock options recorded during the years ended December 31, 2012 and 2011. As of December 31, 2013, the Company has approximately $68 of unrecognized stock compensation expense which will be recognized over a period of approximately 1.23 years.

Restricted Stock Awards

The Company granted restricted stock awards of approximately 378,000 shares on May 22, 2009 under its 2008 long-term incentive compensation plan (“LTICP”), 311,000 shares on May 23, 2008 under its 2007 LTICP, 162,000 shares on May 25, 2007 under its 2006 LTICP and 145,000 and 4,000 shares on May 23, 2006 and June 15, 2006, respectively, under its 2005 LTICP. The restricted stock awards were granted to certain employees, including officers and members of the Board of Directors, at grant prices of $1.46, $7.85, $16.79, $16.52 and $15.78 (in each case, the average of the high and low stock price from the previous day of trading) for the May 22, 2009, May 23, 2008, May 25, 2007, May 23, 2006 and the June 15, 2006 grants, respectively. The restricted stock awards vest annually over a period of three years from the date of grant for the awards made under the 2008 and 2007 LTICPs and over a period of four years for the awards made under the 2006 and 2005 LTICPs, with accelerated vesting upon a change of control of the Company (as defined in the applicable plan). During the restriction period, award holders do not have the rights of stockholders and cannot transfer ownership. Additionally, nonvested shares of award holders are subject to forfeiture. These awards are forfeited and revert to the Company in the event of employment termination, except in the case of death, disability, retirement or other specified events.

The following table summarizes restricted stock activity under the Company’s long-term incentive compensation plans for the years ended December 31, 2013, 2012, and 2011:

	Number of Shares (in thousands)			Weighted- Average Grant Date Fair Value
Outstanding at January 1, 2011		252		$	4.60
Granted		—			—
Vested		(125	)		5.90
Forfeited		(66	)		5.03

Outstanding at December 31, 2011		61		$	1.46
Granted		—			—
Vested		(61	)		1.46
Forfeited		—			—

Outstanding at December 31, 2012 and 2013		—		$	—

The Company recognized approximately $0, $21, and $32 of compensation costs related to the LTICPs during the years ended December 31, 2013, 2012, and 2011, respectively. Additionally, as of December 31, 2013, there was no unrecognized compensation cost related to restricted stock awards granted under the Company’s 2008, 2007, and 2006 LTICPs, respectively.