Share Based Compensation

9 Months Ended

Sep. 30, 2016

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

Share Based Compensation

Share Based Compensation

In April 2003, the Company adopted the 2003 Option Plan. Under the 2003 Option Plan, as amended on April 24, 2007, nonqualified options, incentive stock options, restricted stock and/or stock appreciation rights may be granted to employees and outside directors of the Company and its subsidiaries to purchase the Company's common stock at an exercise price to be determined by the executive and compensation committee. Pursuant to the 2003 Option Plan, 19,000 shares of the Company's unissued common stock had been reserved and were available for issuance upon the exercise of options and rights granted under the 2003 Option Plan. The granted options have an exercise period of seven to ten years from the date of grant.

In May 2015, the Company adopted the 2015 Stock Compensation Plan. Under the 2015 Stock Compensation Plan nonqualified options, incentive stock options, restricted stock and/or stock appreciation rights may be granted to employees and outside directors of the Company and its subsidiaries to purchase the Company's common stock at an exercise price to be determined by the compensation committee. A total of 430,000 shares have been made available under the 2015 Stock Compensation Plan. There are currently 356,236 shares available to grant.

There were 33,321 units of restricted stock granted at a grant date fair value of $16.72 per unit for the nine months ended September 30, 2016. At September 30, 2016, none of the restricted stock units were vested. There were 40,443 shares of restricted stock granted for the year ended December 31, 2015.

There was no compensation cost charged against income for the stock options portion of the equity incentive plans for the nine months ended September 30, 2016 and for the year ended December 31, 2015. There was $0.08 million compensation cost charged against income for the restricted stock portion of the equity incentive plan for the nine months ended September 30, 2016 and $0.5 million charged for the year ended December 31, 2015.

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock prior to its deregistration. The Company uses historical data to estimate option exercise and post-vesting termination behavior. (Employee and management options are tracked separately.) The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. There were no options granted for the nine months ended September 30, 2016 and the year ended December 31, 2015.

A status summary of the option plan as of September 30, 2016 and changes during the period ended on that date are presented below:

	Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding at January 1, 2016	3,156		$	338.72
Granted	—		—
Exercised	—		—
Forfeited	(2,658	)	293.87
Outstanding at end of period	498		$	578.10	0.4 years	$	—
Vested or expected to vest	498		$	578.10	0.4 years	$	—
Options exercisable at period end	498		$	578.10	0.4 years	$	—

Options outstanding at September 30, 2016 and year-end 2015 were as follows:

	Outstanding		Exercisable
Range of Exercise Prices	Number	Weighted Average Remaining Contractual Life	Number	Weighted Average Exercise Price
September 30, 2016
$390.01 - $578.10	498	0.4 years	498	$	578.10
December 31, 2015:
$157.20 - $390.00	2,160	0.2 years	2,160	$	228.33
390.01 - 578.10	996	0.9 years	996	578.10
	3,156	0.4 years	3,156	$	338.72

As of September 30, 2016, there was $0.5 million of total unrecognized compensation cost related to non-vested shares granted under the 2015 Stock Compensation Plan.