Stock-Based Compensation

6 Months Ended

Jun. 30, 2014

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

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

11. Stock-Based Compensation

The Clean Diesel Technologies, Inc. Stock Incentive Plan, as amended (the “Plan”), provides for the awarding of incentive stock options, non-qualified stock options, stock appreciation rights, restricted shares, performance awards, bonuses or other forms of share-based awards, or combinations of these to the Company’s directors, officers, employees, consultants and advisors (except consultants or advisors in capital-raising transactions) as determined by the Board of Directors. As of June 30, 2014, there were 136,936 shares available for future grants under the Plan.

Total stock-based compensation expense for the three months ended June 30, 2014 and 2013 was $0.2 million. Total stock-based compensation expense for the six months ended June 30, 2014 and 2013 was $0.3 million and $0.4 million, respectively. Compensation expense is recognized on a straight-line basis over the requisite service period for all stock-based awards made to employees and directors in the unaudited condensed consolidated statements of comprehensive loss.

Stock Options

Stock option activity is summarized as follows:

	Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (thousands)
Outstanding at December 31, 2013	714,712	$	7.17
Exercised	(97,172)	$	2.83
Cancelled	(79,504)	$	2.83
Outstanding at June 30, 2014	538,036	$	8.59	6.9	$	16
Exercisable at June 30, 2014	459,171	$	9.56	6.8	$	11

The aggregate intrinsic value represents the difference between the exercise price and the Company’s closing stock price on the last trading day of the quarter. As of June 30, 2014, the Company had $0.1 million of unrecognized compensation cost related to stock option grants which will be recognized over a weighted average estimated period of 0.7 years.

Restricted Stock Units (“RSUs”)

RSU activity is as follows:

	Shares	Weighted Average Grant Date Fair Value
Nonvested at December 31, 2013 (1)	285,558	$	2.35
Granted	396,990	$	2.97
Vested	(91,090)	$	2.57
Forfeited	(128,575)	$	2.25
Nonvested units at June 30, 2014	462,883	$	2.87
(1) Includes 26,638 RSUs vested and unissued

As of June 30, 2014, the Company had $1.1 million of unrecognized compensation cost related to RSUs, which will be recognized over a weighted average estimated period of 2.2 years.