Stock Based Compensation

12 Months Ended

Dec. 31, 2014

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

Stock Based Compensation

11. STOCK BASED COMPENSATION

Stock-based compensation awards consist of stock options, restricted stock units, restricted stock awards and bonus shares issued under the Company’s equity incentive plans which include: the 2013 Omnibus Incentive Plan (the “2013 Plan”); the 2007 Restricted Stock Plan (the “2007 Plan”); the Amended and Restated 2004 Directors’ Stock Option and Restricted Stock Plan (the “2004 Directors’ Plan”); the 2004 Stock Incentive Plan (the “2004 Plan”); and the 1995 Stock Incentive Plan (the “1995 Plan”). Upon approval of the 2013 Plan by the Company’s stockholders on June 4, 2013, the Company’s authority to grant new awards under all plans other than the 2013 Plan was terminated. Under the 2013 Plan, the Company may grant awards of stock options, stock appreciation rights, restricted stock awards (“RSAs”), restricted stock units (“RSUs”), unrestricted stock, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards and cash bonus awards to eligible persons. The maximum number of the Company’s common stock that may be reserved for issuance under the 2013 Plan is 1,000,000 shares of common stock, plus unissued shares under the prior plans. Equity awards under the 2013 Plan are granted from time to time at the discretion of the Compensation Committee of the Company (the “Committee”), with vesting periods and other terms as determined by the Committee with a maximum term of 10 years. The 2013 Plan is administered by the Committee, which can delegate the administration to the Board, other Committees or to such other officers and employees of the Company as designated by the Committee.

As of December 31, 2014, 646,180 shares of common stock were available for future issuances under the 2013 Plan. For the years ended December 31, 2014 and 2013, the Company recorded stock-based compensation cost of $1,031 and $381, respectively, which has been included in general and administrative expense.

Bonus Shares

In March 2014, in accordance with the Company’s 2013 Plan, the Company awarded its executives bonuses that were paid out in common stock of the Company. The bonus shares were valued using the closing share price of the Company’s common stock on the date of grant. The bonus shares vested immediately and had a grant date fair value of $192.

Stock Options

The following table summarizes stock options outstanding and changes during the years ended December 31, 2014 and 2013:

	2014					2013
	Number of stock options			Weighted Average Exercise Price		Number of stock options			Weighted Average Exercise Price
Stock options outstanding at beginning of period		309,479		$	19.75		317,270		$	24.62
Granted		-			-		65,000			2.86
Exercised		-			-		-			-
Expired		(134,731	)		12.07		-			-
Canceled or forfeited		(14,000	)		31.31		(72,791	)		25.90
Stock options outstanding at end of period		160,748		$	25.18		309,479		$	19.75
Stock options exercisable at end of period		115,333		$	33.81		226,980		$	25.57

Total estimated unrecognized compensation cost from unvested stock options as of December 31, 2014 was approximately $83, which is expected to be recognized over a weighted-average period of 1.44 years.

The fair value of stock options granted to employees and directors was estimated at the grant date using the Black-Scholes option pricing model using the following assumptions:

	Years ended December 31,
	2014	2013
Expected volatility	N/A	84% - 111%
Risk-free interest rate	N/A	1.40% - 2.63%
Expected life (years)	N/A	2.7 - 7.8
Dividend yield	N/A	N/A

Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Expected price volatility is based on the historical volatility of our common stock. Changes in the subjective input assumptions can materially affect the fair value estimate. The expected term of the options granted is derived from the output of the option pricing model and represents the period of time that the options granted are expected to be outstanding. The risk-free rate for the periods within the contractual term of the option is based on the U.S. Treasury yield curve in effect at the date of grant.

Restricted Stock Units

Time-based and performance-based RSUs are valued using the closing share price of the Company’s common stock on the date of grant. The final number of shares issued under performance-based RSUs is generally based on the Company’s prior year performance as determined by the Compensation Committee of the Board of Directors at each vesting date, and the valuation of such awards assumes full satisfaction of all performance criteria.

The following table summarizes RSU activity for the years ending December 31, 2014 and 2013:

	2014					2013
	Number of restricted stock units			Weighted-Average Grant Date Fair Value		Number of restricted stock units		Weighted-Average Grant Date Fair Value
Unvested RSUs at beginning of period		280,000		$	3.31		-	$	-
Granted		431,941			2.61		280,000		3.31
Forfeited		(29,778	)		3.38		-		-
Vested		(137,353	)		2.95		-		-
Unvested RSUs at end of period		544,810		$	2.84		280,000	$	3.31

Total estimated unrecognized compensation cost from unvested RSUs as of December 31, 2014 was approximately $860, which is expected to be recognized over a weighted-average period of 2.19 years.

Restricted Stock Awards

Time-based and performance-based RSAs are valued using the closing share price of the Company’s common stock on the date of grant. Vesting based on performance criteria is generally based on the Company’s prior year performance as determined by the Compensation Committee at each vesting date, and the valuation of such grants assumes full satisfaction of all performance criteria. Employee participants who receive restricted stock awards have all of the rights of a shareholder, including the right to vote shares of restricted stock that are the subject of the grant and the right to receive any regular cash dividends paid out of current earnings.

The following table summarizes RSA activity during the years ended December 31, 2014 and 2013:

	2014					2013
	Number of RSAs			Weighted-Average Grant Date Fair Value		Number of RSAs			Weighted-Average Grant Date Fair Value
Unvested RSAs at beginning of period		54,151		$	5.49		40,870		$	9.10
Granted		-			-		50,000			2.73
Forfeited		(5,601	)		5.39		(4,220	)		12.74
Vested		(21,880	)		5.85		(32,499	)		4.85
Unvested RSAs at end of period		26,670		$	5.21		54,151		$	5.49

The total estimated unrecognized compensation cost from the unvested RSA grants at December 31, 2014 was $57, which is expected to be recognized over the weighted-average vesting period of 0.99 years.