STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2016

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' EQUITY

Preferred Stock

The Company has 2,000,000 authorized preferred shares of which none were issued and outstanding at December 31, 2016 and 2015.

Common Stock, Options and Stock Grants

Year Ended December 31, 2016

During the year ended December 31, 2016, 161,812 restricted common shares were granted to Directors with an aggregate grant date fair value of approximately $100,000. During the year ended December 31, 2016, approximately 158,471 restricted common shares with an aggregate grant date fair value of approximately $108,000 vested.

During the year ended December 31, 2016, no options were awarded. During the year December 31, 2016, the Company recognized approximately $37,000 of expense related to the vesting of outstanding stock options. For the year ended December 31, 2016, options to acquire 20,000 shares of common stock with a weighted average exercise price of $1.20 expired unexercised, and options to acquire 110,000 shares of common stock with a weighted average exercise price of $1.60 were forfeited.

Year Ended December 31, 2015

During the year ended December 31, 2015, 135,136 restricted common shares were granted to Directors with an aggregate grant date fair value of approximately $100,000. During the year ended December 31, 2015, approximately 108,064 restricted common shares with an aggregate grant date fair value of approximately $87,000 vested.

During the year ended December 31, 2015, the Company issued 111,602 shares of restricted common stock pursuant to the Company’s Directors’ Deferred Compensation Plan dated January 1, 2008. These shares were issued to settle approximately $104,000 of accrued directors’ fees to two former directors for past services.

During the year ended December 31, 2015, 90,000 options were awarded to an officer. These options vest over three years with one-third vesting at the end of each of the three years. These options expire after a five-year term. The Company estimated the grant date fair value of the stock options using the Black-Scholes-Merton option model and the following assumptions: volatility of 90%, risk free rate of 0.89%, dividend rate of zero, and expected term of 3.75 years. The grant date fair value of the stock options issued was determined to be approximately $44,100. During the year ended December 31, 2015, the Company recognized approximately $126,000 of expense related to the vesting of outstanding stock options. For the year ended December 31, 2015, options to acquire 20,980 shares of common stock with a weighted average exercise price of $1.16 expired unexercised, and options to acquire 18,020 shares of common stock with a weighted average exercise price of $1.34 were forfeited.

Stock Option Plans

The Company has granted options under multiple stock-based compensation plans that do not differ substantially in the characteristics of the awards.  Nonqualified and incentive stock options have been granted to directors, officers and employees of the Company under the Company’s stock option plans.  Options generally vest over three to four years and expire five years from the date of the grant. On June 3, 2014, the Company’s stockholders approved the adoption of the 2014 Stock Incentive Plan (the “2014 Plan”).  The 2014 Plan replaces the 2004 Stock Option/Stock Issuance Plan which expired on August 20, 2014.  The 2014 Plan provides for the grant of non-qualified stock options, incentive stock options, and stock appreciation rights, shares of restricted stock, stock units and shares of unrestricted stock.  Eligible participants include officers, employees and directors.  The aggregate number of shares authorized for issuance under the 2014 Plan is 1,200,000, and is subject to adjustment as described in the 2014 Plan.  There are 606,067 shares available for issue under the 2014 plan. Awards that expire or are cancelled without delivery of shares generally become available for issuance under the plans.

	Shares (in thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2016		600		$	1.24		2.10	$	—
Expired		(20	)	$	1.20		—	$	—
Forfeited		(110	)	$	1.60		—	$	—
Outstanding at December 31, 2016		470		$	1.16		1.03	$	—
Exercisable at December 31, 2016		390		$	1.16		0.39	$	—

The following is a summary of stock option activity for the year ended December 31, 2016, relating to all of the Company’s common stock option plans (share amounts are in thousands):

The fair values of the stock options granted were estimated on the date of grant using the Black-Scholes-Merton option-pricing model that uses the following weighted-average assumptions for the year ended December 31, 2015:

	2015
Expected term		3.75 years
Expected volatility		90	%
Expected dividend yield		—
Risk-free interest rate		0.9	%

The following table summarizes stock option information as of December 31, 2016:

				Weighted Average
		Number Outstanding		Remaining	Options Exercisable
Exercise Prices		(in thousands)		Contractual Life	(in thousands)
$	0.90		90	3.25 years		30
$	1.15		300	0.12 years		300
$	1.50		80	1.97 years		60
	Total		470	1.03 years		390

As of December 31, 2016, there was approximately $30,000 of unrecognized compensation costs related to stock options outstanding that will be recognized as expense over a weighted average period of 1.17 years.

Restricted Stock Grants

A summary of activity related to the Company’s non-vested stock grants for the year ended December 31, 2016 is presented below:

Non-Vested Shares		Shares (in thousands)			Weighted-Average Grant Date Fair Value
	Non-Vested at January 1, 2016		78		$	0.74
	Granted		162		$	0.62
	Vested		(159	)	$	0.68
	Non-Vested at December 31, 2016		81		$	0.64

The future expected expense for non-vested shares is approximately $75,000 and will be recognized on a straight-line basis over the period from January 1, 2017 through December 31, 2017.