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Stock-Based Compensation
12 Months Ended
Dec. 31, 2014
Stock-Based Compensation [Abstract]  
Stock-Based Compensation
E.  Stock-Based Compensation
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 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, 2014 and 2013:
  
2014
  
2013
 
Expected volatility
  
44% – 54
%
  
66
%
Dividend rate
  
0
%
  
0
%
Expected term (in years)
  
3.00 – 3.55
   
3.45
 
Risk-free rate
  
0.36% – 1.05
%
  
0.38
%
Forfeiture rate
  
0% – 10
%
  
5
%

The Company bases expected volatility on the weighted average historical stock volatility of the Company's common stock. 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.

The following table summarizes information about stock options outstanding and exercisable at December 31, 2014 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, 2013
  
177,861
  
$
15.33
   
2.1
   
 
Granted during 2014
  
110,482
   
4.97
   
4.4
   
 
Exercised during 2014
  
   
   
   
 
Forfeited during 2014
  
(69,676
)
  
5.18
   
2.5
   
 
Expired during 2014
  
   
   
   
 
Outstanding at December 31, 2014
  
218,667
  
$
9.98
   
3.2
  
$
 
Exercisable at December 31, 2014
  
133,565
  
$
12.94
   
2.6
  
$
 

The weighted-average grant-date fair value of options granted during the years 2014 and 2013 was $4.47 and $2.33, respectively.

The following table summarizes information about the Company's nonvested stock awards as of December 31, 2014,  as well as activity during the year then ended:

  
Number of Stock Awards
  
Weighted Average Grant Date Fair Value
 
Unvested at December 31, 2013
  
11,988
  
$
6.74
 
Granted during 2014
  
21,805
   
3.21
 
Vested during 2014
  
(27,418
)
  
3.96
 
Forfeited during 2014
  
(104
)
  
6.44
 
Unvested at December 31, 2014
  
6,271
  
$
6.64
 

As of December 31, 2014, there was approximately $117,000 of total unrecognized compensation cost related to unvested 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 1.7 years. The total fair value of shares vested during the year ended December 31, 2014, was approximately $97,000.

The 2011 Incentive Plan had 263,316 shares remaining available for future issuance at December 31, 2014.
F.  Income Taxes