STOCK BASED COMPENSATION

The following table summarizes employee and nonemployee stock based compensation for the years ended December 31, 2016 and 2015:



	Year Ending December 31,
Amounts in (000's)	2016		2015
Employee compensation:
Stock options	$	112	$	42
Warrants	278		196
Restricted stock	628		431
Total employee stock-based compensation expense	$	1,018	$	669
Non-employee compensation:
Stock options	$	50	$	49
Warrants	—		—
Restricted stock	65		224
Total non-employee stock-based compensation expense	$	115	$	273
Total stock-based compensation expense	$	1,133	$	942

The assumptions used in calculating the fair value of employee stock options and warrants granted for the years ended December 31, 2016 and 2015, using the Black-Scholes-Merton option-pricing model, are set forth in the following table:



	Year Ending December 31,
	2016		2015
Dividend Yield	—	%	4.8	%
Expected Volatility	40.9	%	38.6	%
Risk-Free Interest Rate	1.43	%	1.09	%
Expected Term (in years)	5.0		3.9

No stock-based compensation awards were granted to non-employees for the year ended December 31, 2016 or for the year ended December 31, 2015.

Common Stock Options

The Company has two stock option plans:


•	The 2005 Stock Incentive Plan, which expired September 30, 2015; and


•	The 2011 Stock Incentive Plan, which expires March 28, 2021 and provides for a maximum of 2,027,393 shares of common stock to be issued.

The two plans permit the granting of incentive or nonqualified stock options. The 2011 Stock Incentive Plan also permits the granting of restricted stock. The plans are administered by the Board which has the authority to determine to whom awards will be made, the amounts of the awards, and the other terms and conditions of the awards. The number of securities remaining available for future issuance under the 2011 Stock Incentive Plan as of December 31, 2016 is 438,110.

The following summarizes the Company's employee and non-employee stock option activity for the years ended December 31, 2016 and 2015:



	Number of Options (000's)		Weighted Average Exercise Price		Weighted Average Remaining Contract Life (in years)	Aggregate Intrinsic Value (000's) ^(a)
Outstanding at December 31, 2014	935		$	4.91
Granted	—		$	—
Exercised	(13	)	$	2.35
Forfeited	(535	)	$	5.63
Expired	(120	)	$	4.10
Outstanding at December 31, 2015	267		$	3.96	6.9	$	2
Vested at December 31, 2015	184		$	3.96	6.1	$	2
Vested or Expected to Vest at December 31, 2015 ^(b)	264		$	3.96	6.9	$	2

Outstanding at December 31, 2015	267		$	3.96
Granted	141		$	2.07
Exercised	—		$	—
Forfeited	(8	)	$	4.06
Expired	(45	)	$	3.86
Outstanding at December 31, 2016	355		$	3.21	5.6	$	—
Vested at December 31, 2016	320		$	3.14	5.3	$	—
Vested or Expected to Vest at December 31, 2016 ^(b)	355		$	3.21	5.6	$	—

^(a) Represents the aggregate gain on exercise for vested in-the-money options as of December 31, 2016.

^(b)Includes forfeiture adjusted unvested shares.

The weighted average grant date fair value of common stock options granted during the year ended December 31, 2016 was $2.07. No options were granted during the year ended December 31, 2015. At December 31, 2016, the Company has approximately $47.5 thousand of unrecognized compensation expense related to unvested options. Assuming no pre-vesting forfeitures, this expense will be recognized as a charge to earnings over a weighted-average remaining service period of 1.0 year. The total intrinsic value of options exercised during the years ended December 31, 2016 and 2015, was zero and $0.02 million, respectively.

The following summary information reflects stock options outstanding, vested and related details as of December 31, 2016:



	Stock Options Outstanding				Stock Options Exercisable
Exercise Price	Number Outstanding (000's)	Weighted Average Remaining Contractual Term (in years)	Weighted Average Exercise Price		Vested and Exercisable (000's)	Weighted Average Exercise Price
$1.31 - $3.99	290	5.3	$	3.01	255	$	2.89
$4.00 - $4.30	65	6.7	$	4.12	65	$	4.12
Total	355	5.6	$	3.21	320	$	3.14

Common Stock Warrants

The Company grants stock warrants to officers, directors, employees and certain consultants to the Company from time to time as determined by the Board and, when appropriate, the Compensation Committee of the Board. The Board administers the granting of warrants, determines the persons to whom awards will be made, the amount of the awards, and the other terms and conditions of the awards.

The following summarizes the Company's employee and non-employee common stock warrant activity for the years ended December 31, 2016 and 2015:



	Number of Warrants (000's)		Weighted Average Exercise Price		Weighted Average Remaining Contract Life (in years)	Aggregate Intrinsic Value (000's) ^(a)
Outstanding at December 31, 2014	2,716		$	3.45
Granted	275		$	4.25
Exercised	(519	)	$	3.43
Forfeited	(225	)	$	4.04
Expired	(196	)	$	3.91
Outstanding at December 31, 2015	2,051		$	3.46	4.7	$	305
Vested at December 31, 2015	1,576		$	3.19	3.5	$	305
Vested or Expected to Vest at December 31, 2015 ^(b)	1,998		$	3.43	4.7	$	305

Outstanding at December 31, 2015	2,051		$	3.46
Granted	—		$	—
Exercised	(109	)	$	1.04
Forfeited	—		$	—
Expired	(55	)	$	4.08
Outstanding at December 31, 2016	1,887		$	3.58	4.1	$	11
Vested at December 31, 2016	1,604		$	3.44	3.3	$	11
Vested or Expected to Vest at December 31, 2016 ^(b)	1,867		$	3.57	4.0	$	11

^(a) Represents the aggregate gain on exercise for vested in-the-money warrants as of December 31, 2016.

^(b)Includes forfeiture adjusted unvested shares.

No warrants were granted during the year ended December 31, 2016. The weighted average grant date fair value of common stock warrants granted during the year ended December 31, 2015, was $0.85. The Company has approximately $0.3 million of unrecognized compensation expense related to unvested common stock warrants as of December 31, 2016. Assuming no pre-vesting forfeitures, this expense will be recognized as a charge to earnings over a weighted-average remaining service period of 1.0 years. The total intrinsic value of common stock warrants exercised during the years ended December 31, 2016 and 2015 was $0.1 million and $0.4 million, respectively.

The following summary information reflects warrants outstanding, vested and related details as of December 31, 2016:



	Warrants Outstanding				Warrants Exercisable
Exercise Price	Number Outstanding (000's)	Weighted Average Remaining Contractual Term (in years)	Weighted Average Exercise Price		Vested and Exercisable (000's)	Weighted Average Exercise Price
$1.04 - $1.99	218	0.9	$	1.82	218	$	1.82
$2.00 - $2.99	335	1.5	$	2.58	335	$	2.58
$3.00 - $3.99	500	2.8	$	3.59	500	$	3.59
$4.00 - $4.99	811	6.7	$	4.39	528	$	4.42
$5.00 - $5.90	23	6.4	$	5.90	23	$	5.90
Total	1,887	4.1	$	3.58	1,604	$	3.44

Restricted Stock

The following summarizes the Company's restricted stock activity for the year ended December 31, 2016 and 2015:



	Number of Shares (000's)		Weighted Average Grant Date Fair Value
Unvested at December 31, 2014	504		$	3.68
Granted	204		$	4.05
Vested	(393	)	$	3.51
Forfeited	(21	)	$	3.20
Unvested at December 31, 2015	294		$	4.19
Granted	305		$	1.93
Vested	(183	)	$	3.52
Forfeited	(12	)	$	2.49
Unvested at December 31, 2016	404		$	2.84

The weighted average grant date fair value of restricted stock awards granted during the years ended December 31, 2016 and 2015 was $1.93 and $4.05, respectively. The Company has approximately $0.9 million of unrecognized compensation expense related to unvested restricted stock awards as of December 31, 2016. Assuming no pre-vesting forfeitures, this expense will be recognized as a charge to earnings over a weighted-average remaining service period of 2.81 years.