Stock-Based Compensation

6 Months Ended

Jun. 30, 2015

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

Stock-Based Compensation

9. STOCK-BASED COMPENSATION

Stock-based compensation awards consist of stock options, restricted stock units (“RSUs”) and restricted stock awards (“RSAs”) 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. As of June 30, 2015, 503,452 shares were available for future issuances under the 2013 Plan.

For the three and six months ending June 30, 2015, the Company recorded stock-based compensation expense of $171,576 and $625,403, respectively. For the three and six months ending June 30, 2014, the Company recorded stock-based compensation expense of $154,877 and $463,274, respectively. Stock-based compensation expense has been included in general and administrative expense.

Bonus Shares

In March 2015, in accordance with the Company’s short-term incentive plan, the Company awarded its executives bonuses that were paid out in shares of the Company’s common stock. The bonus shares vested immediately and had a fair value of $283,000 which was determined using the closing share price of the Company’s common stock on the date of grant.

Stock Options

The following table summarizes stock options outstanding and changes for the six-month periods ending June 30, 2015 and 2014:

	June 30,		June 30,
	2015		2014
	Number of stock options	Weighted Average Exercise Price	Number of stock options	Weighted Average Exercise Price
Stock options outstanding at beginning of period	160,748	$           25.28	309,479	$           19.75
Expired	(2,500)	32.90	(131,250)	11.60
Canceled or forfeited	-	-	(14,000)	31.31
Stock options outstanding at end of period	158,248	$           25.06	164,229	$           25.28
Stock options exercisable at end of period	133,665	$           29.13	113,072	$           35.20

The following table summarizes stock options outstanding and exercisable by stock option plan at June 30, 2015:

	Outstanding Stock Options		Exercisable Stock Options
Stock Option Plan	Number of Options Outstanding	Weighted Average Exercise  Price	Number of Options Exercisable	Weighted Average Exercise  Price
1995 Plan	8,750	$               31.20	8,750	$               31.20
2004 Plan	69,500	10.10	51,167	12.74
2004 Directors’ Plan	74,998	39.68	72,498	40.90
2013 Plan	5,000	2.99	1,250	2.99
	158,248	$               25.06	133,665	$               29.13

Total estimated unrecognized compensation cost from unvested stock options as of June 30, 2015 was $54,159, which is expected to be recognized over a weighted-average period of 1.1 years.

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 the RSUs activity for the six-month periods ended June 30, 2015 and 2014:

	June 30,		June 30,
	2015		2014
	Number of RSUs	Weighted-Average Grant Date Fair Value	Number of RSUs	Weighted-Average Grant Date Fair Value
Unvested RSUs at beginning of period	544,810	$             2.84	280,000	$             3.31
Granted	-	-	431,941	2.61
Forfeited	-	-	(20,000)	2.83
Vested	(132,383)	2.84	(59,997)	2.83
Unvested RSUs at end of period	412,427	$            2.85	631,944	$             2.89

Total estimated unrecognized compensation cost from unvested RSUs as of June 30, 2015 was $603,815, which is expected to be recognized over a weighted-average period of 1.33 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 of the Board of Directors 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 the RSAs activity for the six-month periods ended June 30, 2015 and 2014:

	June 30,		June 30,
	2015		2014
	Number of RSAs	Weighted-Average Grant Date Fair Value	Number of RSAs	Weighted-Average Grant Date Fair Value
Unvested RSAs at beginning of period	26,670	$             5.21	54,151	$             5.49
Forfeited	-	-	(5,601)	5.39
Vested	(9,030)	8.42	(20,230)	5.58
Unvested RSAs at end of period	17,640	$             3.57	28,320	$             5.44

The total estimated unrecognized compensation cost from the unvested RSA grants at June 30, 2015 was $12,804, which is expected to be recognized over the weighted-average vesting period of 0.45 years.