Share-Based Compensation

3 Months Ended

Mar. 31, 2014

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

(6) Share-Based Compensation

We follow FASB ASC Topic 718, Share-Based Payments, in which compensation expense is recognized only for share-based payments expected to vest. We recognized compensation expense related to stock options of $57 and $69 for the three month periods ended March 31, 2014 and 2013, respectively.

As of March 31, 2014, there was approximately $410 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under our stock option plans. That cost is expected to be recognized over a remaining weighted-average period of 2.3 years.

Stock Options and Stock Grants

During the three months ended March 31, 2014, no stock options were exercised, compared to proceeds of $3 realized and 10,000 shares of common stock issued pursuant to option exercises during the same period in 2013. For the three months ended March 31, 2014, 568,000 stock options were granted compared to 543,000 stock options granted during the same period in 2013. During the three months ended March 31, 2014, no stock options were forfeited compared to 54,000 stock options forfeited during the same period in 2013.

Stock Appreciation Rights

Prior to 2011, we granted our outside directors stock appreciation rights (SARs). The change in fair value of the awards granted during prior years is included in non-cash compensation expense for the quarters ended March 31, 2014 and 2013. The SARs granted vested immediately and are payable upon the directors’ removal or resignation from the position of director. These awards are accounted for as liability awards, included in accrued expenses as of March 31, 2014 and 2013, and adjusted to fair value each reporting period. The fair value of the liability on March 31, 2014 was $7, compared to $8 on December 31, 2013.

As of March 31, 2014, we did not have any unvested restricted stock or performance shares outstanding.

The following table illustrates the various assumptions used to calculate the Black-Scholes option pricing model for stock options granted during the three month periods ended:

	March 31, 2014	March 31, 2013
Weighted-average risk-free interest rates:	2.01%	1.32%
Dividend yield:	—	—
Weighted-average expected life of the option:	7 years	7 years
Weighted-average expected stock price volatility:	95.16%	92.27%
Weighted-average fair value of the options granted:	$0.42	$0.33