Stock-Based Compensation

12 Months Ended

Dec. 31, 2013

Stock-Based Compensation [Abstract]

Stock-Based Compensation

E.Stock-Based Compensation

The Company measures the cost of employee services in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the cost over the requisite service period, typically the vesting period.

On August 4, 2011, the Company's stockholders approved the 2011 Incentive Plan. 500,000 shares of common stock are authorized for issuance under the 2011 Incentive Plan. The Company believes that such awards better align the interests of its employees with those of its shareholders. Option awards are generally granted with an exercise price equal to 10% above the market price of the Company's stock at the date of grant; those option awards generally have 5-year contractual terms and generally vest over three years. Restricted stock awards are granted at a value equal to the market price of the Company's common stock on the date of grant.

The following table summarizes the inputs to the option valuation model for the options granted during the years ended December 31, 2013 and 2012:

	2013			2012
Expected volatility		66	%		79	%
Dividend rate		0	%		0	%
Expected term (in years)		3.45			3.45
Risk-free rate		0.38	%		0.38	%
Forfeiture rate		5	%		0	%

The Company bases expected volatility on the weighted average historical stock volatility. There is no dividend rate. The expected term utilizes historical data to estimate the period of time that the options are expected to remain unexercised. The Company bases risk-free rates on the U.S. Treasury zero-coupon rates with a remaining term equal to the expected term of the option. The Company also estimates forfeitures at the time of grant and revises, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Based upon past history of actual performance, a five percent and zero percent forfeiture rate has been assumed for options granted during 2013 and 2012, respectively.

The following table summarizes information about stock options outstanding and exercisable at December 31, 2013 as well as activity during the year then ended:

	Number of Stock Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2012		130,000			18.65		2.6		—
Granted during 2013		62,401			7.26		4.3		—
Exercised during 2013		—			—		—		—
Forfeited during 2013		(14,540	)		10.40		3.8		—
Expired during 2013		—			—		—		—
Outstanding at December 31, 2013		177,861		$	15.33		3.1	$	—
Exercisable at December 31, 2013		66,000		$	20.23		2.5	$	—

The weighted-average grant-date fair value of options granted during the years 2013 and 2012 was $2.33 and $2.44, respectively.

The following table summarizes information about the Company's nonvested stock awards as of December 31, 2013,  as well as activity during the year then ended:

	Number of Stock Awards			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2012		11,549			12.72
Granted during 2013		27,864			5.29
Vested during 2013		(25,950	)		7.56
Forfeited during 2013		(1,475	)		11.56
Nonvested at December 31, 2013		11,988		$	6.74

As of December 31, 2013, there was approximately $273,000 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the 2011 Incentive Plan and 2001 Equity Incentive Plan. That cost is to be recognized over a weighted average period of 1.5 years. The total fair value of shares vested during the year ended December 31, 2013, was approximately $132,000.

The 2011 Incentive Plan had 349,565 shares remaining available for future issuance at December 31, 2013.