Stock-Based Compensation

6 Months Ended

Jun. 30, 2014

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

We maintain a stock-based compensation program intended to attract, retain and provide incentives for talented employees and directors and align stockholder and employee interests. Currently, we grant options and restricted stock units ("RSUs") from the 2005 Long-Term Incentive Plan ("2005 LTIP") and the 2010 Equity Compensation Plan (“2010 ECP”). Option and restricted stock unit vesting periods are generally up to three years. During the second quarter of 2014, the Board of Directors approved the 2014 Management Equity Compensation Program, a performance-based restricted stock grant incentive program. The grant may vary depending upon achieving 2014 profit goals established by the Board of Directors.

For the three and six months ended June 30, 2014, we recorded stock-based compensation expense for all equity incentive plans of $248,382 and $378,830, respectively and $110,420 and $300,413 for the three and six months ended June 30, 2013, respectively. Total compensation cost not yet recognized at June 30, 2014 was $961,601 to be recognized over a weighted-average recognition period of 1.4 years.

During the second quarter of 2014, we granted employees a total of 717,257 RSUs with a weighted average fair value of $0.78 per share. The shares vest ratably over three years or upon certain performance conditions. In the same quarter, we granted members of our board of directors a total of 102,560 RSUs with a weighted average fair value of $.78 a share which vest quarterly until March 31, 2015. In the first quarter of 2013, we granted employees a total of 100,000 RSUs with a weighted average fair value of $0.72 per share.

On March 31, 2013, some of our employees voluntarily canceled certain outstanding stock options for no consideration. As a result, 805,134 shares were canceled and returned to 2005 LTIP and 2010 ECP plans. The cancellation of these options resulted in the recognition of $49,577 in additional stock-based compensation expense, which represented the fair value of the canceled options that had not yet been recognized as of the date of cancellation.

The following table summarizes the stock grants outstanding under our 2005 LTIP and 2010 ECP plans as of June 30, 2014:



	Options Outstanding	RSUs Outstanding	Options and RSUs Exercised	Available Shares	Total
2010 ECP	254,998	925,339	1,082,713	1,422,895	3,685,945
2005 LTIP	33,748	398,766	535,111	32,375	1,000,000
Total	288,746	1,324,105	1,617,824	1,455,270	4,685,945

We also have 160,996 options outstanding under a separate plan which is not authorized to issue any additional shares.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References+ Details