Stock-Based Compensation

9 Months Ended

Sep. 30, 2017

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

Stock-Based Compensation

10. 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. On July 18, 2017, the Company’s stockholders approved an amendment to the 2013 Plan to increase the authorized number of shares of common stock available and reserved for issuance under the 2013 Plan by 1.0 million shares and to re-approve the material terms of the performance goals under such plan. As of November 9, 2017, the Company had 561,232 shares available for future issuances under the 2013 Plan.

For the three months ending September 30, 2017 and 2016, the Company recorded stock-based compensation expense of $24,279 and $75,495, respectively. For the nine months ending September 30, 2017 and 2016, the Company recorded stock-based compensation expense of $62,356 and $545,166, respectively. Stock-based compensation expense has been included in general and administrative expense.

In addition to the plans above, upon closing of the Company’s acquisition of Anatolia Energy Limited in November 2015, the Company issued 374,749 replacement options and performance shares to the option holders and performance shareholders of Anatolia Energy Limited. 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 acquisition of Anatolia Energy Limited. As of September 30, 2017, 98,646 replacement options remain outstanding.

Stock Options

The following table summarizes stock options outstanding and changes for the nine-month periods ending September 30, 2017 and 2016:

	Sep 30,					Sep 30,
	2017					2016
	Number of Stock Options			Weighted Average Exercise Price		Number of Stock Options			Weighted Average Exercise Price
Stock options outstanding at beginning of period		110,828		$	18.24		326,424		$	24.90
Granted		189,164			1.40		-			-
Expired		(6,001	)		104.67		(215,346	)		27.64
Stock options outstanding at end of period		293,991		$	5.64		111,078		$	19.60
Stock options exercisable at end of period		104,722		$	13.26		110,869		$	19.57

The following table summarizes stock options outstanding and exercisable by stock option plan at September 30, 2017:

	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	4,792	$	35.14	4,792	$	35.14
2004 Directors’ Plan	973		317.14	973		317.14
2013 Plan	189,581		1.48	312		35.88
Replacement Stock Options	98,645		9.13	98,645		9.13
	293,991	$	5.64	104,722	$	13.26

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 nine-month periods ended September 30, 2017 and 2016:

	Sep 30,					Sep 30,
	2017					2016
	Number of RSUs			Weighted-Average Grant Date Fair Value		Number of RSUs			Weighted-Average Grant Date Fair Value
Unvested RSUs at beginning of period		8,649		$	43.71		32,699		$	34.25
Granted		304,064			1.40		-			-
Forfeited		-			-		(3,334	)		32.21
Vested		(39,340	)		4.16		(7,698	)		29.45
Unvested RSUs at end of period		273,373		$	1.95		21,667		$	36.27