Shareholders' Equity

9 Months Ended

Sep. 30, 2013

Shareholders' Equity [Abstract]

Shareholders' Equity

8)       Shareholders’ Equity

Common Stock

During the three and nine months ended September 30, 2013, the Company issued 0 shares and 30,000 shares, respectively, of common stock to officers of the Company pursuant to the 2001 Stock Compensation Plan.

The following table details the changes in common stock during the nine months ended September 30, 2013:

(Amounts in thousands, except for share amounts)
					Additional
	Common Stock				Paid-In
	Shares		Amount		Capital
Balance January 1, 2013		27,652,602	$	277	$	123,078
2001 stock compensation plan		30,000		--		48
Expense of employee options vesting		--		--		76
Expense of outside director options vesting		--		--		47
Balance September 30, 2013		27,682,602	$	277	$	123,249

 

Stock Option Plans

The following table represents the activity in employee stock options and non-employee director stock options for the nine months ended September 30, 2013:

	September 30, 2013
	Employee Stock Options					Director Stock Options
				Weighted					Weighted
				Average					Average
				Exercise					Exercise
	Options			Price		Options			Price
Outstanding balance at December 31, 2012		2,259,282		$	3.80		150,000		$	3.05
Granted		270,000		$	2.08		36,000		$	2.08
Forfeited		--		$	--		--		$	--
Expired		(28,333	)	$	4.68		(40,000	)	$	2.60
Exercised		--		$	--		--		$	--
Outstanding at September 30, 2013		2,500,949		$	3.60		146,000		$	2.93
Exercisable at September 30, 2013		2,137,619		$	3.85		56,668		$	3.46
Weighted Average Remaining Contractual Life - Years					4.26					8.35
Aggregate intrinsic value of options outstanding				$	--				$	--

Employee Stock Option Plans.  During the three and nine months ended September 30, 2013, we issued 270,000 options to employees under the U.S Energy Corp. 2012 Equity and Performance Incentive Plan.  The options were issued at the closing price of $2.08 on the date of grant, vest over a three year period and expire ten years from the date of grant.  These options were valued under the Black-Scholes pricing model using a risk free interest rate of 1.66%, expected life of six years and expected volatility of 62.5879%.  During the three and nine months ended September 30, 2013 we recorded $44,000 and $76,000, respectively, in compensation expense for employee stock options.  During the three and nine months ended September 30, 2012, we recorded $15,000 and $17,000, respectively, in compensation expense for employee stock options.  We will recognize an additional $414,000 in expense over the weighted average vesting period of 2.48 years related to the outstanding employee options.

Director Option Plans.  During the three and nine months ended September 30, 2013, we issued 36,000 options to non-employee directors under the 2008 Stock Option Plan for Independent Directors.  The options were issued at the closing price of $2.08 on the date of grant, vest over a three year period and expire ten years from the date of grant.  These options were valued under the Black-Scholes pricing model using a risk free interest rate of 1.66%, expected life of six years and expected volatility of 62.5879%.  During the three and nine months ended September 30, 2013 we recorded $16,000 and $47,000, respectively, in expense for options issued to non-employee directors.  During the three and nine months ended September 30, 2012 we recorded $16,000 and $53,000, respectively, in expense for options issued to non-employee directors.  We will recognize an additional $107,000 in expense over the weighted average vesting period of 1.89 years related to the outstanding director options.