STOCK-BASED COMPENSATION PLANS

12 Months Ended

Dec. 31, 2015

9. STOCK‑BASED COMPENSATION PLANS

The 2005 Equity Incentive Plan, which expired in June 2015, permitted the grant of options to our employees, executive officers and Board of Directors and restricted stock to our executive officers and Board of Directors for up to 300,000 shares of Common Stock, as amended. At December 31, 2014, we had options outstanding under the plan which were forfeited on January 31, 2015.

On May 6, 2015, our stockholders approved the 2015 Equity Incentive Plan which permits the grant of restricted shares to our non-employee Board of Directors and employees for up to 400,000 shares of common stock.

Options—Option awards are granted with an exercise price equal to the market price of Common Stock at the date of grant and vest immediately upon grant with five-year contractual terms. A summary of the status of our stock options as of December 31, 2015 and 2014 and the changes during the years ended are as follows:


	2015
	Number of		Weighted
	Shares		Average
	Underlying		Exercise
	Options		Prices
Outstanding, January 1		17,050	$	20.46
Granted		—		—
Exercised		—		—
Forfeited		(17,050)	$	20.46
Outstanding and exercisable, December 31		—


	2014
	Number of		Weighted
	Shares		Average
	Underlying		Exercise
	Options		Prices
Outstanding, March 11 (Acquisition Date)		19,700	$	13.96
Granted		11,850	$	23.16
Exercised		(14,500)	$	13.83
Outstanding and exercisable, December 31		17,050	$	20.46
Weighted-average fair value per share of stock options granted during the year	$	0.66

Effective January 31, 2015, all 17,050 outstanding options were forfeited in accordance with the plan. No stock options were outstanding as of December 31, 2015. We recorded compensation expense of $0 and $8,000 during the years ended December 31, 2015 and 2014, respectively, related to the option grant.

Restricted Shares—A summary of our restricted shares as of December 31, 2015 and 2014 and the changes during the years ended is as follows:


	2015
		Weighted
		Average Grant
	Number of	Date Fair Value
	Shares	Per Share
Balance, January 1	7,334	$	21.32
Granted	8,000	$	17.81
Vested	(7,332)	$	17.82
Balance, December 31	8,002	$	18.27


	2014
		Weighted
		Average Grant
	Number of	Date Fair Value
	Shares	Per Share
Balance, March 11 (Acquisition Date)	—
Granted	8,000	$	21.42
Vested	(666)	$	22.54
Balance, December 31	7,334	$	21.32

On March 11, 2014, we granted awards of 2,000 restricted shares of Common Stock to each of the independent members of the Board of Directors (6,000 in aggregate) which awards were effective upon the receipt of stockholder approval of the amendment of the 2005 Equity Incentive Plan on April 28, 2014. The shares of Common Stock vested in March 2015 based on a year of continuous service. In April 2015, an additional 2,000 restricted shares of Common Stock were granted to each of the independent members of the Board of Directors (6,000 in aggregate) under the 2015 Equity Incentive Plan, which will vest over a year of continuous service. Compensation expense related to these restricted shares of Common Stock is recognized over the vesting period. We recorded compensation expense of $113,000 and $95,000 for the years ended December 31, 2015 and 2014, respectively, related to these restricted shares of Common Stock.

We issued to two of our executive officers an aggregate of 2,000 shares of Common Stock on May 6, 2014 and an aggregate of 2,000 shares of Common Stock on March 6, 2015. The restricted shares of Common Stock vest based on two years of continuous service with one‑third of the shares of Common Stock vesting immediately upon issuance and one‑third vesting at the end of each of the next two years from the date of issuance. Compensation expense related to these restricted shares of Common Stock is recognized over the vesting period. We recognized compensation expense of $39,000 and $29,000 for the years ended December 31, 2015 and 2014, respectively, related to these restricted shares of Common Stock.

As of December 31, 2015, there was $37,000 of total unrecognized compensation expense related to shares of Common Stock which will be recognized over the next year. The estimated fair value of restricted shares vested during 2015 and 2014 was $131,000 and $15,000, respectively.