Stock-Based Compensation

9 Months Ended

Sep. 30, 2013

Stock-Based Compensation [Abstract]

Stock-Based Compensation

6.Stock-Based Compensation

Our share-based incentive plans permit us to grant restricted stock units, restricted stock, incentive or non-qualified stock options, and certain other instruments to employees, directors, consultants and advisors of the Company.   The exercise price of options granted under the plan must be at least equal to the fair value of our common stock on the date of grant. All options granted vest at a rate determined by the Nominating and Compensation Committee of our Board of Directors and are exercisable for varying periods, not to exceed ten years.  Shares issued under the plans upon option exercise or stock unit conversion are generally issued from authorized, but previously unissued shares. 

On April 11, 2013, the Company implemented a one-for-ten reverse stock split of its common stock.  As a result of the reverse stock split, each ten (10) outstanding shares of pre-split common stock, stock options and other equity awards were automatically combined into one (1) share of post-split common stock.  Fractional shares received cash.  The consolidated financial statements for all prior periods have been retroactively adjusted to reflect this reverse stock split.

As of September 30, 2013, 533,497 shares of common stock were available for grant under our current plan.  We are authorized to issue up to 1,133,637 plan equivalent shares of common stock in relation to stock options or restricted shares outstanding or available for grant under the plans. 

Stock Options

The number and weighted average exercise price of stock options outstanding are as follows:

	Shares Under Stock Options	Weighted Average Price Per Share
OUTSTANDING AT DECEMBER 31, 2012	640,454	$	18.70
Granted at market price	-		-
Exercised	-		-
Expired, forfeited, cancelled or repurchased	(40,314)		17.55
OUTSTANDING AT SEPTEMBER 30, 2013	600,140	$	18.79

The following table summarizes information about stock options outstanding at September 30, 2013:

Options Outstanding									Options Exercisable
Range of Exercise Price					Options Outstanding	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Options Exercisable	Weighted Average Exercise Price Per Share
$	6.60	-	$	6.60	451,923	$	6.60	4.86	451,923	$	6.60
$	14.10	-	$	14.10	5,000		14.10	7.83	5,000		14.10
$	28.90	-	$	28.90	50,625		28.90	3.19	50,625		28.90
$	31.90	-	$	68.80	67,523		64.69	1.08	67,523		64.69
$	80.30	-	$	96.70	22,569		94.29	2.13	22,569		94.29
$	105.10	-	$	105.10	2,500		105.10	1.84	2,500		105.10
					600,140	$	18.79		600,140	$	18.79

A total of 600,140 stock options with a weighted average exercise price of $18.79 were outstanding and fully vested at September 30, 2013. There were no stock options granted during the nine months ended September 30, 2013 or 2012.  

The total intrinsic value of options exercised (i.e., the difference between the market price on the exercise date and the price paid by the employee to exercise the options) during the nine months ended September 30, 2013 and 2012 was $0 and $36,000, respectively.   The total amount of cash received in 2013 and 2012 by the Company from the exercise of these options was $0 and $63,000, respectively.   As of September 30, 2013 the intrinisic value of fully vested stock options was $0. The remaining weighted average contractual term for options exercisable is approximately 4.42 years.  As of September 30, 2013, all stock options have vested and all related compensation costs have been recognized.

Non-cash compensation cost related to stock and stock options and restricted stock recognized during the nine months ended September 30, 2013 and 2012 was $443,000 and $476,000, respectively. 

Restricted Stock

We may grant common stock and restricted common stock units to employees.  These awards are recorded at their fair value on the date of grant and compensation cost is recorded using graded vesting over the expected term.  The weighted average grant date fair value of common stock and restricted stock units granted during the nine months ended September 30, 2013 and 2012 was $4.00 (total grant date fair value of $350,000) and $9.60 (total grant date fair value of $350,000), respectively.  As of September 30, 2013 all restricted stock units had vested.  The total fair value of restricted stock units vested during the nine months  ended September 30, 2013 and 2012 was $350,000 and relate to independent director shares in lieu of cash.   The following summary reflects restricted stock unit activity and related information.

	Shares / Units	Weighted-Average Grant Date Fair Value
NONVESTED AT DECEMBER, 31, 2012	-	$	-
Granted	87,500		4.00
Vested or Exercised	(87,500)		4.00
Expired or forfeited	-		-
NONVESTED AT SEPTEMBER 30, 2013	-	$	-