7.	STOCKHOLDERS’ EQUITY

Restricted Stock

The Company has two stock incentive plans: a Long-Term Incentive Plan (the “LTIP”) and a Non-Employee Directors Restricted Stock Plan (the “Non-Employee Directors Plan”).

Under the LTIP, certain employees receive awards of restricted shares of common stock based on service and performance. The number of shares granted to each employee is based on the amount of the award and the fair market value of a share of common stock on the date of grant.

On February 28, 2019, restricted shares were granted to certain employees of the Company, which shares ratably vest over three years. There is no restriction on the right to vote or the right to receive dividends with respect to any of such restricted shares.

Pursuant to the Non-Employee Directors Plan, each non-employee director of the Company receives an annual award of restricted shares of common stock on the date of the Company’s annual meeting of shareholders. The number of shares granted to each non-employee director is based on the fair market value of a share of common stock on that date. The restricted shares vest on the first anniversary of the grant date. There is no restriction on the right to vote or the right to receive dividends with respect to any of such restricted shares.

For the six months ended June 30, 2019 and 2018, the Company completed a net share settlement for 5,518 and 207,642 restricted shares, respectively, on behalf of certain employees that participate in the LTIP upon the vesting of the restricted shares pursuant to the terms of the LTIP. The net share settlement was in connection with income taxes incurred on restricted shares that vested and were transferred to the employees during 2019 and/or 2018, creating taxable income for the employees. At the employees’ request, the Company will pay these taxes on behalf of the employees in exchange for the employees returning an equivalent value of restricted shares to the Company. These transactions resulted in a decrease of less than $0.1 million and $0.4 million for each of the six months ended June 30, 2019 and 2018, respectively, to equity on the condensed consolidated balance sheets as the cash payment of the taxes effectively was a repurchase of the restricted shares granted in previous years.

The following is a summary of transactions pertaining to restricted stock:

	Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested restricted stock outstanding at December 31, 2018		35,908		$	2.23
Granted		598,982			3.15
Canceled		(3,546	)		3.17
Vested		(35,908	)		2.23

Nonvested restricted stock outstanding at June 30, 2019		595,436			3.15

The restricted stock expense for each of the three months ended June 30, 2019 and 2018 was $0.2 million and $0.1 million, respectively. The restricted stock expense for each of the six months ended June 30, 2019 and 2018 was $0.2 million and $0.5 million, respectively. The unrecognized restricted stock expense as of June 30, 2019 and December 31, 2018 was $1.7 million and $0.1 million, respectively. As of June 30, 2019, outstanding restricted shares under the LTIP had aggregate intrinsic value of $1.4 million.

Stock Options

The fair value of the stock options used to compute stock-based compensation is the estimated present value at the date of grant using the Black-Scholes option pricing model. The following is a summary of transactions pertaining to stock options:

	Shares		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2018		139,000	$	12.14	2.53 years	$	-
Granted/Canceled/Vested		-		-			-

Outstanding at June 30, 2019		139,000		12.14	2.04 years		-

Vested as of June 30, 2019		139,000		12.14	2.04 years		-

Exercisable as of June 30, 2019		139,000		12.14	2.04 years		-

As of June 30, 2019, there was no unrecognized pre-tax compensation expense.

The following table presents a summary of stock options outstanding:

	At June 30, 2019
	Stock Options Outstanding						Stock Options Exercisable
Range of Exercise Prices	Shares		Contractual Weighted Average Life (years)		Weighted Average Price		Shares		Weighted Average Exercise Price
$4.00-$13.99		91,000		2.67	$	7.79		91,000	$	7.79
$14.00-$19.99		17,000		0.34		19.98		17,000		19.98
$20.00-$25.00		31,000		1.10		20.62		31,000		20.62

		139,000		2.04		12.14		139,000		12.14