7. Stock-Based Compensation

Under our former Stock Incentive Plan (the “Plan”), stock-based incentive compensation awards were granted to eligible employees and non-employee directors in the form of distribution equivalent rights, incentive stock options, non-qualified stock options, performance share awards, performance unit awards, restricted stock awards, restricted stock units awards, stock appreciation rights, tandem stock appreciation rights, unrestricted stock awards or any combination of the foregoing, as may be best suited to the circumstances of the particular employee, director or consultant. All stock-based incentive compensation awards were granted by the Compensation Committee of the Board of Directors.

In connection with the Company’s dissolution on October 23, 2015, the Plan was terminated and no shares remain outstanding or available for future stock-based compensation. In addition, all unexercised stock options issued under the Plan and previous incentive plans were terminated.

Stock Options

A summary of option activity under the Plan as of September 30, 2015, and the changes during the nine months then ended is presented below. No stock options were granted during the first nine months of 2015.

	Stock Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (years)
Outstanding at December 31, 2014		551,409		$	6.05
Granted		-			-
Forfeited / Expired		(324,885	)		6.08
Exercised		-			-
Outstanding at September 30, 2015		226,524		$	5.95		7.05
Exercisable at September 30, 2015		165,081		$	6.71		6.61

During the three and nine months ended September 30, 2015, the total intrinsic value of stock options exercised was zero and the total fair value of options which vested was zero. During the three and nine months ended September 30, 2014, the total intrinsic value of stock options exercised was zero and the total fair value of options which vested was $0.8 million. The aggregate intrinsic value of outstanding and exercisable stock options was zero, based on our $2.72 closing stock price at September 30, 2015.

Compensation expense recognized in the consolidated statement of operations for stock options was $49 thousand and $0.1 million for the three months ended September 30, 2015 and 2014, respectively, before the effect of income taxes. Compensation expense recognized in the consolidated statement of operations for stock options was $0.1 million and $0.5 million for the nine months ended September 30, 2015 and 2014, respectively, before the effect of income taxes.

As of September 30, 2015, total unrecognized stock-based compensation expense related to non-vested stock options was approximately $0.1 million.

Restricted Stock Grants

A summary of the activity of non-vested restricted stock awards and restricted stock units under the Plan as of September 30, 2015, and the changes during the nine months then ended is presented below:

	Restricted Stock Awards						Restricted Stock Units
	Restricted Stock Awards			Weighted- Average Grant Date Fair Value		Weighted- Average Remaining Contractual Life (years)	Restricted Stock Units			Weighted- Average Grant Date Fair Value		Weighted- Average Remaining Contractual Life (years)
Balance at December 31, 2014		341,637		$	2.83			82,572		$	4.17
Granted		31,251			2.56			165,000			2.55
Forfeited		(33,971	)		5.06			(122,226	)		3.30
Vested		(140,646	)		3.01			(105,208	)		2.88
Balance at September 30, 2015		198,271		$	2.29	1.05		20,138		$	2.90	1.56

At September 30, 2015, the aggregate value of non-vested restricted stock awards and restricted stock units was $0.5 million and $0.1 million, respectively, before applicable income taxes, based on a $2.72 closing stock price. Compensation expense recognized in the consolidated statement of operations for restricted stock awards and units was $0.6 million and $0.8 million for the nine months ended September 30, 2015 and 2014, respectively, before the effect of income taxes.

As of September 30, 2015, total unrecognized stock-based compensation expense related to restricted stock awards and restricted stock units was approximately $0.4 million and $49 thousand, respectively.

In connection with the terms of executive separation agreements and the Company’s dissolution on October 23, 2015, 214,461 restricted stock awards and units vested and all other remaining shares outstanding were cancelled.

Performance Stock Awards

Performance stock awards are based on achieving key internal metrics measured at the end of each fiscal year over a three year performance period. If performance objectives are achieved as determined by the Compensation Committee, common stock is granted. The fair value of these awards is determined on the date of grant based on our share price. A summary of the activity of performance stock units under the Plan as of September 30, 2015, and the changes during the nine months then ended is presented below:

	Performance Stock Units			Weighted- Average Grant Date Fair Value		Weighted- Average Remaining Contractual Life (years)
Balance at December 31, 2014		229,315		$	2.50
Granted		165,000			2.55
Forfeited		(173,074	)		2.80
Vested		-			-
Balance at September 30, 2015		221,241		$	2.30	2.19

Compensation expense recognized on the consolidated statement of operations for performance stock awards was $0.1 million for the nine months ended September 30, 2015. No compensation expense was recorded during the comparable 2014 period. As of September 30, 2015, there was $0.4 million of unrecognized compensation expense related to unvested performance share unit awards.

In connection with the Company’s dissolution on October 23, 2015 and at the discretion of the Compensation Committee, 115,000 performance stock awards vested and all other remaining shares outstanding were cancelled.