7. SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2016

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. 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 requisite expected service period, net of estimated forfeitures. Under the Plan, the total number of options permitted is 15 percent of issued and outstanding common shares.

Summary of Nonvested Shares of Restricted Stock

The following table summarizes the activity of our nonvested restricted shares for the years ended December 31, 2016 and 2015:

	Restricted Shares			Weighted- Average Grant-Date Fair Value
Nonvested at December 31, 2014		517		$	2.01
Granted		600			0.38
Vested		(253	)		2.02
Nonvested at December 31, 2015		864		$	0.88
Granted		30			0.91
Vested		(654	)		1.02
Nonvested at December 31, 2016		240		$	0.50

For the years ended December 31, 2016 and 2015, we recognized a total of $344 and $516, 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 nonvested shares of restricted stock awards was $139 at December 31, 2016. These costs are expected to be recognized as expense over a weighted average period of 0.76 years.

Summary of Stock Options

Based on the shares of common stock outstanding at December 31, 2016, there were approximately 2,311 options available for grant under the Plan as of that date. We determine the fair value of stock options on the date of the grant using the Black-Scholes option pricing model.

The following table summarizes our stock option activity for the years ended December 31, 2016 and 2015:

	Shares Underlying Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)
Outstanding at December 31, 2014		325		$	1.80		1.4
Cancellations & Forfeitures		(50	)		1.80
Outstanding at December 31, 2015		275			1.80		0.4
Cancellations & Forfeitures		(275	)		1.80
Outstanding at December 31, 2016		–		$	–
Exercisable at December 31, 2016		–		$	–		–