Share-Based Compensation and Warrants

9 Months Ended

Sep. 30, 2015

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation and Warrants

Note 9. Share-Based Compensation and Warrants

Share-Based Compensation

The following table summarizes stock option activity under the Goodman Networks Incorporated 2008 Long-Term Incentive Plan (the “2008 Plan”) and the Goodman Networks, Incorporated 2000 Equity Incentive Plan (the ”2000 Plan”) for the nine months ended September 30, 2015:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding at December 31, 2014		611,065		$	64.31		7.13
Granted		22,500			71.28
Forfeited		(4,834	)		104.89
Expirations		(20,665	)		62.48
Outstanding at September 30, 2015		608,066		$	64.31		6.49
Exercisable at September 30, 2015		496,053		$	59.04		6.09

The fair values of option awards granted were estimated at the grant date using a Black-Scholes option pricing model with the following assumptions:

	2014		2015
Expected volatility	58.94% - 61.37%		83.34% - 85.25%
Risk-free interest rate	1.75% - 1.87%		1.53% - 1.62%
Expected life (in years)	5.29 - 6.00		5.65 – 6.04
Expected dividend yield		0.00%	0.00%

The Company granted stock options representing the right to purchase an aggregate of 22,500 shares of common stock during three months periods ended September 30, 2015 to two executives.  As of September 30, 2015, there was approximately $3.2 million of unrecognized compensation costs related to non-vested stock options.  These costs are expected to be recognized over a remaining weighted average vesting period of 0.70 years.

There were no stock options exercised during the three or nine months ended September 30, 2014 or 2015. The intrinsic value for stock options vested and expected to vest is $7.7 million.

The compensation expense recognized for outstanding share-based awards was $2.1 million and $1.1 million for the three months ended September 30, 2014 and 2015, respectively, and $4.2 million and $4.5 million for the nine months ended September 30, 2014 and 2015, respectively.