Stock Based Compensation

9 Months Ended

Sep. 30, 2014

Stock Based Compensation [Abstract]

Stock Based Compensation

Note 6 — Stock Based Compensation

The Company applies the fair value recognition provisions of ASC Topic 718 Stock-Based Compensation.  The Company recorded stock based compensation of $185,000 and $987,000 for the three and nine months ended September 30, 2014, respectively.  Total stock-based compensation expense included within operating expenses for the three and nine months ended September 30, 2013 was $197,000 and a net benefit of $85,000, respectively.  At September 30, 2014, the unrecognized compensation expense related to non-vested equity awards was $1,363,000 (net of estimated forfeitures), which is expected to be recognized as compensation expense in fiscal years 2014 through 2017.

During the first nine months of 2014, the Company granted a total of 235,000 equity awards to various employees as recommended by the Company’s Compensation Committee and approved by its Board of Directors, under the 2005 Equity Incentive Plan.  Included within the equity grants were approximately 105,000 performance based restricted stock awards which vest upon the achievement of Business Unit and Consolidated financial goals relative to fiscal years 2014 through 2016.  These equity awards are forfeited if the performance conditions are not achieved for each fiscal year.  For the three and nine month period ended September 30, 2014, the Company recognized compensation expense related to the performance awards based on its estimate of the probability of achievement in accordance with ASC Topic 718.