Stock-Based Compensation

6 Months Ended

Jun. 30, 2016

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”); and the 2004 Stock Incentive Plan (the “2004 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, 2016, 44,085 shares were available for future issuances under the 2013 Plan. For the three months ending June 30, 2016 and 2015, the Company recorded stock-based compensation expense of $0.3 million and $0.2 million, respectively. For the six months ending June 30, 2016 and 2015, the Company recorded stock-based compensation of $0.5 million and $0.6 million respectively. Stock-based compensation is included in general and administrative expense.

In addition to the plans above, upon completion of the Anatolia Transaction, the Company issued 374,749 replacement options and performance shares to the option holders and performance shareholders of Anatolia Energy. The number of replacement options and performance shares was based upon the Black-Scholes value with the exercise prices of the replacement options and performance shares determined using the exchange rate of 0.00548. The options and performance shares were issued with the same terms and conditions as were applicable prior to the Anatolia Transaction. During the six months ended June 30, 2016 all of the performance shares expired without the performance condition being satisfied.

Bonus Shares

The Company did not award any bonus shares during the six-month period ending June 30, 2016.

In March 2015, in accordance with the Company’s short-term incentive plan, the Company awarded its executives bonuses that were paid out in common stock of the Company. The bonus shares vested immediately and had a fair value of $0.3 million 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, 2016 and 2015:

	June 30,		June 30,
	2016		2015
	Number of Stock Options	Weighted Average Exercise Price	Number of Stock Options	Weighted Average Exercise Price
Stock options outstanding at beginning of period	326,424	$           24.90	13,396	$         303.36
Expired	(4,724)	438.89	(208)	394.80
Stock options outstanding at end of period	321,700	$           18.82	13,188	$         300.72
Stock options exercisable at end of period	321,491	$           18.81	11,139	$         349.56

The following table summarizes stock options outstanding and exercisable by stock option plan at June 30, 2016:

	Outstanding Stock Options		Exercisable Stock Options
Stock Option Plan	Number of Outstanding Stock Options	Weighted Average Exercise  Price	Number of Exercisable Stock Options	Weighted Average Exercise  Price
2004 Plan	5,792	$             121.17	5,792	$              121.17
2004 Directors’ Plan	1,390	629.52	1,390	629.52
2013 Plan	417	35.88	208	35.88
Replacement Stock Options	314,101	14.21	314,101	14.21
	321,700	18.82	321,491	18.81

Total estimated unrecognized compensation cost from unvested stock options as of June 30, 2016 was approximately $7,870, which is expected to be recognized during the quarter ended September 30, 2016.

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 six-month periods ended June 30, 2016 and 2015:

	June 30,		June 30,
	2016		2015
	Number of RSUs	Weighted-Average Grant Date Fair Value	Number of RSUs	Weighted-Average Grant Date Fair Value
Unvested RSUs at beginning of period	32,699	$           34.25	45,401	$           34.08
Granted	-	-	-	-
Forfeited	(3,334)	32.21	-	-
Vested	(7,698)	29.45	(11,032)	34.08
Unvested RSUs at end of period	21,667	$           36.27	34,369	$           34.20

Total estimated unrecognized compensation cost from unvested RSUs as of June 30, 2016 was approximately $0.4 million, which is expected to be recognized over a weighted-average period of 0.87 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 RSA activity for the six-month periods ended June 30, 2016 and 2015:

	June 30,		June 30,
	2016		2015
	Number of RSAs	Weighted-Average Grant Date Fair Value	Number of RSAs	Weighted-Average Grant Date Fair Value
Unvested RSAs at beginning of period	1,366	$           40.01	2,223	$           62.52
Granted	-	-	-	-
Forfeited	(104)	80.40	-	-
Vested	(336)	47.51	(752)	101.04
Unvested RSAs at end of period	926	$           32.76	1,471	$           42.84