7. STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2015

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

STOCK-BASED COMPENSATION

Equity Incentive Plans

Options

We have one long-term equity incentive plan which we refer to as the 2006 Equity Incentive Plan, which we amended and restated as of April 20, 2015 (the “Restated Plan”). The Restated Plan was approved by our stockholders at our annual stockholders meeting on June 11, 2015. As of June 30, 2015, we have reserved for issuance under the Restated Plan 12,000,000 shares of common stock. We can issue options, stock awards, stock appreciation rights and cash awards under the Restated Plan. Certain options granted under the Restated Plan to employees are intended to qualify as incentive stock options under existing tax regulations. Stock options generally vest over two to five years and expire five to ten years from the date of grant.

As of June 30, 2015, we had outstanding options to acquire 1,130,009 shares of our Common Stock, of which options to acquire 1,086,676 shares were exercisable. During the six months ended June 30, 2015, we did not grant any stock options under our Restated Plan.

The following summarizes all of our stock option transactions during the six months ended June 30, 2015:

				Weighted Average		Weighted Average Remaining
				Exercise price		Contractual		Aggregate
Outstanding Options				Per Common		Life		Intrinsic
Under the Restated Plan	Shares			Share		(in years)		Value
Balance, December 31, 2014		2,092,509		$	3.58
Granted		–			–
Exercised		(937,500	)		2.66
Canceled, forfeited or expired		(25,000	)		2.22
Balance, June 30, 2015		1,130,009			4.36		1.20	$	3,216,338
Exercisable at June 30, 2015		1,086,676			4.46		1.11		3,014,838

Aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between our closing stock price on June 30, 2015 and the exercise price, multiplied by the number of in-the-money options ) that would have been received by the holder had all holders exercised their options on June 30, 2015. Total intrinsic value of options exercised during the six months ended June 30, 2015 and 2014 was approximately $5.4 million and $5.9 million, respectively. As of June 30, 2015, total unrecognized stock-based compensation expense related to non-vested options was $25,000, which is expected to be recognized over a weighted average period of approximately 1.4 years.

Restricted Stock Awards

The Restated Plan permits the issuance of restricted stock awards (“RSA’s”). As of June 30, 2015, we have issued a total of 3,441,208 RSA’s, of which 2,600,013 RSA’s have previously vested and 841,195 RSA’s remained unvested at June 30, 2015.

The following summarizes all unvested RSA activities during the six months ended June 30, 2015:

				Weighted- Average
				Remaining		Weighted-
				Contractual		Average
	Shares			Term (Years)		Fair Value
RSA's outstanding at December 31, 2014		942,023				$	1.96
Changes during the period
Granted		724,423				$	8.66
Vested		(825,252	)			$	4.45
RSA's outstanding at June 30, 2015		841,195			0.92	$	5.28

We determine the fair value of all RSA’s based on the closing price of our common stock on the date of award.

In sum, of the 12,000,000 shares of common stock reserved for issuance under the Restated Plan, at June 30, 2015, we had 3,441,208 RSA’s (of which 841,195 shares were subject to further vesting), outstanding options to acquire 1,130,009 shares, and 3,915,042 shares of common stock available for future awards. We had previously granted options and other awards to acquire 3,513,741 shares which have been issued.