Share-Based Compensation

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Employee Share-Based Compensation Plans - On May 29, 2008, the Company's shareholders approved the 2008 Omnibus Employee Incentive Plan (the "2008 Plan") providing for the grant of stock options, stock appreciation rights, non-vested stock and performance shares. For the three and six month periods ended June 30, 2015, the Company granted 10,000 and 600,000 options, respectively, for the purchase of shares under the 2008 Plan. As of June 30, 2015, approximately 3,216,200 shares remain available for grant under the 2008 Plan.

On May 24, 2011, the Company's shareholders approved the 2011 Omnibus Employee Incentive Plan, as subsequently amended and restated, (the "2011 Plan") providing for the grant of stock options and non-vested stock awards. There were 450,000 options for the purchase of shares granted under the 2011 Plan during the three month period ended June 30, 2015. During the three and six month periods ended June 30, 2014, the Company granted 300,000 options to purchase shares under the 2011 Plan. During the six month periods ended June 30, 2015 and June 30, 2014, the Company also granted a total of 41,667 and 400,000 of stock awards to non-employee members of the Board of Directors that immediately vested. As of June 30, 2015, approximately 800,000 shares remain available for grant under the 2011 Plan.

The fair value of the stock options granted during the three and six month periods ended June 30, 2015, was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:



	Three Months Ended June 30,	Six Months Ended June 30,
	2015	2015
Expected life (years)	5.04	5.04
Expected volatility	64.1%	64.1%
Expected dividend yield	—%	—%
Risk-free interest rate	1.4%	1.4%
Weighted average fair value of options granted during the period	$0.25	$0.26

The following table summarizes stock option activity for the six month period ended June 30, 2015:



	Number of Options		Weighted Average Exercise Price Per Option		Weighted Average remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding balance at December 31, 2014	3,652,200		0.67
Granted	1,050,000		0.47
Exercised	(50,000	)	0.45
Expired	(413,000	)	1.44
Forfeited	(3,000	)	0.67
Outstanding balance at June 30, 2015	4,236,200		0.55		8.32	$0
Options exercisable at June 30, 2015	1,637,291		$	0.64	7.47	$0

The aggregate intrinsic value disclosed in the table above represents the difference between the Company's closing stock price on the last trading day of the quarter ended June 30, 2015, and the exercise price, multiplied by the number of in-the-money stock options.

There were 50,000 options with a weighted average exercise price of $0.45 exercised during the six month period ended June 30, 2015. During the three and six month periods ended June 30, 2014, an aggregate of 16,500 and 54,000 stock options valued with a weighted average exercise price of $0.65 and $0.51, respectively, were exercised. Options for the purchase of an aggregate of 94,941 shares of common stock vested during the six month period ended June 30, 2015, and the aggregate fair value at grant date of these options was $0.04 million. As of June 30, 2015, there was approximately $0.5 million of total unrecognized compensation cost related to stock options. The cost is expected to be recognized over a weighted average period of 1.88 years.

The Company recorded $0.1 million and $0.2 million, respectively, of share-based compensation expense in selling, general and administrative expenses for the three and six month periods ended June 30, 2015. The Company recorded $0.3 million and $0.4 million, respectively, of share-based compensation expense in selling, general and administrative expenses for the three and six month periods ended June 30, 2014.