Share-Based Compensation

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based 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 $47 and $57 for the three month periods ended March 31, 2015 and 2014, respectively.

As of March 31, 2015, there was approximately $340 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 2.1 years.

Stock Options and Stock Grants

During the three months ended March 31, 2015, 69,333 shares of common stock were issued pursuant to option exercises for proceeds of $26, while no stock options were exercised during the same period in 2014. For the three months ended March 31, 2015, 446,100 stock options were granted compared to 568,000 stock options granted during the same period in 2014. During the three months ended March 31, 2015, 159,000 stock options were forfeited compared to no stock options forfeited during the same period in 2014. We had 2,658,100 stock options outstanding at a weighted average exercise price of $1.00 on March 31, 2015, compared to 2,440,000 stock options outstanding at a weighted average exercise price of $1.15 on December 31, 2014.

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, 2015 and 2014. 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, 2015 and 2014, and adjusted to fair value each reporting period. The fair value of the liability was $1 on both March 31, 2015 and December 31, 2014.

As of March 31, 2015, 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, 2015			March 31, 2014
Weighted-average risk-free interest rates:		1.74	%		2.01	%
Dividend yield:		—			—
Weighted-average expected life of the option:		7 years			7 years
Weighted-average expected stock price volatility:		95	%		95	%
Weighted-average fair value of the options granted:	$	0.44		$	0.42