8. SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2013

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

SHARE-BASED COMPENSATION

We have a share-based compensation plan, the “2003 Directors, Officers and Consultants Stock Option, Stock Warrant and Stock Award Plan” (the “Plan”). Awards of stock options and stock granted under the Plan have vesting periods of three years. Some awards of stock have performance criteria as an additional condition of vesting. Once vested, stock options may be exercised for up to five years. Share-based compensation expense related to awards is based on the fair value at the date of grant, and is recognized over the vesting periods, net of estimated forfeitures. The value of performance-based awards is recognized as expense only when it is considered probable that the performance criteria will be met. Under the Plan, the total number of options permitted is 15 percent of issued and outstanding common shares.

Summary of Shares of Restricted Stock

For the years ended December 31, 2013 and 2012, we recognized a total of $460 and $213, respectively, of share-based compensation expense related to restricted stock awards, which is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. The unamortized estimated fair value of restricted stock awards was $980 at December 31, 2013.

The following table summarizes the activity of our restricted stock for the years ended December 31, 2013 and 2012. The aggregate intrinsic value is based upon the closing price of $2.06 of our common stock on December 31, 2013.

		Restricted Shares			Weighted-Average Grant-Date Fair Value		Aggregate Intrinsic Value
Outstanding at December 31, 2011			400		$	1.80	$	400
	Forfeited		(17	)		1.80
	Vested		(8	)		1.80
Outstanding at December 31, 2012			375		$	1.80	$	488
	Granted		730			2.03
	Forfeited		(33	)		1.80
	Vested		(17	)		1.80
Outstanding at December 31, 2013			1,055		$	1.96	$	2,173

Summary of Stock Options

Based on the shares of common stock outstanding at December 31, 2013, there were approximately 2,289 options available for grant under the Plan as of that date. We expense all stock options on a straight-line basis, net of forfeitures, over the requisite expected service periods. We determine the fair value of stock options on the date of the grant using the Black-Scholes option pricing model.

For the years ended December 31, 2013 and 2012, we recognized a total of $150 and $341, respectively, of share-based compensation expense related to outstanding stock option awards, which is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. The unamortized portion of the estimated fair value of outstanding stock options was $44 at December 31, 2013.

The following table summarizes our stock option activity for the years ended December 31, 2013 and 2012:

In thousands, except per share amounts	Shares Underlying Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)
Outstanding at December 31, 2011		1,063		$	2.00		2.4
Cancellations & Forfeitures		(55	)		2.19
Outstanding at December 31, 2012		1,008		$	2.00		2.4
Cancellations & Forfeitures		(63	)		1.93
Outstanding at December 31, 2013		945		$	1.98		1.3
Exercisable at December 31, 2013		837		$	2.01		1.2

The aggregate intrinsic value is based on the closing price of $2.06 on December 31, 2013. As of December 31, 2013, the aggregate intrinsic value of stock options outstanding and stock options exercisable was $76. The total fair value of stock options vested during the year ended December 31, 2013 was $42. The following summarizes our outstanding options and their respective exercise prices at December 31, 2013:

Exercise Price	Shares Underlying Options
$1.80		325
$2.00		500
$2.40		120
		945