Share-Based Compensation

9 Months Ended

Sep. 30, 2017

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

Share-Based Compensation

(7) Share-Based Compensation

We follow FASB ASC Topic 718, Compensation – Stock Compensation, in which compensation expense is recognized only for share-based payments expected to vest. We recognized compensation expense related to stock options of $45 and $140 for the three and nine months ended September 30, 2017, respectively, compared to $41 and $129 for the three and nine months ended September 30, 2016, respectively.

As of September 30, 2017, there was approximately $305 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 2.0 years.

Stock Options and Stock Grants

During the nine months ended September 30, 2017, 45,334 shares of common stock were issued pursuant to stock option exercises for proceeds of $14. During the nine months ended September 30, 2016, 44,500 shares of common stock were issued pursuant to stock option exercises for proceeds of $18. During the nine months ended September 30, 2017, 507,600 stock options were granted compared to 419,390 stock options granted during the same period in 2016. During the nine months ended September 30, 2017, 44,568 stock options were forfeited compared to 64,900 stock options forfeited during the same period in 2016. We had 3,351,000 stock options outstanding at a weighted average exercise price of $0.79 on September 30, 2017, compared to 2,933,000 stock options outstanding at a weighted average exercise price of $0.81 on December 31, 2016.

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

For the three months ended	Sept 30, 2017	Sept 30, 2016
Weighted-average risk-free interest rates:	—	—
Dividend yield:	—	—
Weighted-average expected life of the option:	—	—
Weighted-average expected stock price volatility:	—	—
Weighted-average fair value of the options granted:	—	—

For the nine months ended	Sept 30, 2017			Sept 30, 2016
Weighted-average risk-free interest rates:		2.1	%		1.4	%
Dividend yield:		—			—
Weighted-average expected life of the option:		7 Years			7 Years
Weighted-average expected stock price volatility:		94	%		95	%
Weighted-average fair value of the options granted:	$	0.55		$	0.34

As of September 30, 2017, we did not have any unvested restricted stock or performance shares outstanding.