Share-Based Compensation

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. The 2008 Plan provides for the issuance of an aggregate of 333,333 shares. There were no options for the purchase of shares granted under the 2008 Plan during the three and six month periods ended June 30, 2017. During the three and six month periods ended June 30, 2016, the Company granted 100,000 and 153,332 options, respectively, for the purchase of shares under the 2008 Plan. As of June 30, 2017, 53,566 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. The 2011 Plan provides for the issuance of an aggregate of 633,333 shares. During the three month period ended June 30, 2017, the Company granted 2,075,000 options for the purchase of shares granted under the 2011 Plan conditioned on shareholder approval which was granted at the August 10, 2017, annual meeting of the Company’s shareholders of a proposed increase in the number of shares subject to issuance under the 2011 Plan. During the six month period ended June 30, 2017, the Company granted a total of 19,800 stock awards under the 2011 Plan to non-employee Board of Directors that immediately vested. During the three and six month periods ended June 30, 2016, the Company granted a total of 166,665 stock awards to non-employee Board of Directors that immediately vested. As of June 30, 2017, assuming shareholder approval of the increase of shares available for issuance under the 2011 Plan, 226,728 shares remained available for grant under the 2011 Plan.

Options under the 2008 and 2011 Plans are granted at fair value on the date of grant, are exercisable in accordance with various vesting schedules specified in the individual grant agreements, and have contractual lives of 10 years from the date of grant.

The fair value of the stock options granted during the three and six month periods ended June 30, 2017, 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,
	2017	2017
Expected life (years)	4.2	4.2
Expected volatility	90.0%	90.0%
Expected dividend yield	—%	—%
Risk-free interest rate	1.8%	1.8%
Weighted average fair value of options granted during the period	$0.43	$0.43

The following table summarizes stock option activity for the six month period ended June 30, 2017:



	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, 2016	403,986		$	4.62
Granted	2,075,000		0.65
Exercised	—		—
Forfeited and Expired	(25,053	)	3.17
Outstanding balance at June 30, 2017	2,453,933		1.28		9.49	$0
Options exercisable at June 30, 2017	241,041		$	6.11	6.78	$0

There were no options exercised during the six month periods ended June 30, 2017 and 2016. Options for the purchase of an aggregate of 48,084 shares of common stock vested during the six month period ended June 30, 2017, and the aggregate fair value at grant date of these options was $0.1 million. As of June 30, 2017, there was approximately $0.7 million of total unrecognized compensation cost related to stock options. The cost is expected to be recognized over a weighted average period of 2.10 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, 2017. The Company recorded $0.4 million and $0.5 million, respectively, of share-based compensation expense in selling, general and administrative expenses for the three and six month periods ended June 30, 2016.