Stock Based Compensation

12 Months Ended

Dec. 31, 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, 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”); 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 re-approve the material terms of the performance goals under such plan. 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 Board (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, 2017, 561,232 shares of common stock were available for future issuances under the 2013 Plan. For the years ended December 31, 2017 and 2016, the Company recorded stock-based compensation cost of $0.1 million and $0.2 million, respectively, which has been included in general and administrative expense.

In addition, 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. As of December 31, 2017, there were 90,828 replacement options outstanding.

Bonus Shares

In March 2016, 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 $0.3 million.

Stock Options

Stock options are valued using the Black-Scholes option pricing model on the date of grant. The Company estimates forfeitures based on historical trends. There were no stock option grants during 2016.

The following table summarizes stock options outstanding and changes during the years ended December 31, 2017 and 2016:

	December 31, 2017					December 31, 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		$	24.89
Granted		189,164			1.40		-			-
Expired		(13,818	)		50.88		(210,872	)		19.13
Canceled or forfeited		-			-		(4,724	)		438.89
Stock options outstanding at end of period		286,174		$	5.53		110,828		$	18.24
Stock options exercisable at end of period		97,010		$	13.59		110,723		$	18.22

The following table summarizes stock options outstanding and exercisable by stock option plan at December 31, 2017:

	Outstanding Stock Options				Exercisable Stock Options
Stock Option Plan	Number of  Stock Options  Outstanding		Weighted  Average  Exercise Price		Number of  Stock Options  Exercisable		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		417		35.88
Replacement Stock Options		90,828		9.09		90,828		9.09
		286,174	$	5.53		97,010	$	13.59

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 Committee 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, 2017 and 2016:

	December 31, 2017					December 31, 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		(34,845	)		5.72		(7,627	)		34.61
Vested		(98,971	)		2.50		(16,423	)		29.09
Unvested RSUs at end of period		178,897		$	1.40		8,649		$	43.71

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 performance as determined by the 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, 2017 and 2016:

	December 31, 2017				December 31, 2016
	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
Forfeited		-		-		(410	)		44.84
Vested		-		-		(956	)		37.94
Unvested RSAs at end of period		-	$	-		-		$	-