14. Stock Options

The Company has a non-qualified stock option and stock grant plan under which equity awards may be granted to key employees, directors and others (the “Plan”). A summary of activity under the Plan for the six months ended June 30, 2015 is presented below:


	Shares	Weighted Average Exercise Price (per share)		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (thousands)
Outstanding as of December 31, 2014	4,675,000	$	9.61	5.9	$	-
Granted	-		-	-		-
Exercised	-		-	-		-
Forfeited	(365,000)		12.36	-		-
Outstanding as of June 30, 2015	4,310,000	$	9.38	5.4	$	-

Vested and exercisable as of June 30, 2015	3,696,669	$	8.54	5.0	$	-

No options were granted during the six months ended June 30, 2015. Substantially all of the options vest over a three year period and have an exercise term of 10 years. The total fair value of stock options vested during the six months ended June 30, 2015 was $0.7 million.

The following table summarizes information about stock options outstanding at June 30, 2015:


Range of Exercise Prices	Number of Options	Weighted Average Remaining Contractual Term (in years)	Weighted Average Exercise Price (per share)		Number of Options	Weighted Average Exercise Price (per share)
$3.40 - $3.95	1,900,000	3.20	$	3.66	1,900,000	$	3.66
$5.81 - $14.36	1,390,000	7.11	$	10.86	1,110,002	$	11.03
$17.10 - $20.51	1,020,000	7.14	$	18.01	686,667	$	18.01
	4,310,000	5.39	$	9.38	3,696,669	$	8.54

The fair value of stock option grants is amortized over the respective vesting period. Total stock-based compensation expense related to stock options for the three and six months ended June 30, 2015 was $0.8 million and $1.9 million, respectively, and for the three and six months ended June 30, 2014 was $1.2 million and $2.0 million, respectively.

Stock-based compensation expense has been allocated between production costs and general and administrative expense as follows:


	Three months ended June 30,				Six months ended June 30,
	2015		2014		2015		2014
	(in thousands)
Production costs	$	259	$	498	$	607	$	964
General and administrative expenses		589		674		1,306		992
Total	$	848	$	1,172	$	1,913	$	1,956

The estimated unrecognized stock-based compensation expense from unvested options as of June 30, 2015 was approximately $0.8 million, and is expected to be recognized over the remaining vesting periods of up to two years.

The assumptions used to determine the value of stock-based awards under the Black-Scholes-Merton method are summarized below:


	Six months ended June 30,
	2015	2014
Risk-free interest rate	-	1.53%
Dividend yield	-	1.63%
Expected volatility	-	55.35%
Expected life in years	-	5