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8. SHARE-BASED COMPENSATION
6 Months Ended
Jun. 30, 2014
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 common stock and options to purchase common stock granted under the Plan have vesting periods of three years and options are exercisable for two years once fully vested. 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. Effective April 1, 2014, we changed our estimated forfeiture rate from 20 percent to 0 percent. Under the Plan, the total number of options permitted is 15 percent of issued and outstanding common shares.

 

Summary of Shares of Restricted Stock

 

On May 1, 2014, we granted 30 shares of restricted stock, with a grant date fair value of $1.77 per share, to a newly-appointed director, who is not an employee of the Company or any of its affiliates. The restrictions on these service-based shares of restricted stock, issued during the six months ended June 30, 2014, will lapse with respect to one-third of the shares on each of the first, second and third anniversaries of the effective date of grant.

 

During the six months ended June 30, 2014 and 2013, we recognized a total of $366 and $198, respectively, of share-based compensation expense related to restricted stock awards, which is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations. The unamortized portion of the estimated fair value of restricted stock awards was $1,002 at June 30, 2014.

 

Summary of Stock Options

 

For the six months ended June 30, 2014 and 2013, we recognized a total of $69 and $77, respectively, of share-based compensation expense related to outstanding stock option awards, which is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations. The unamortized portion of the estimated fair value of non-vested stock options was $0 at June 30, 2014.