Stock-based Compensation

9 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based Compensation

Stock-based Compensation

During the three and nine months ended September 30, 2013, 333 and 2,135 options were vested, respectively. During the three and nine months ended September 30, 2012, 333 and 2,833 options were vested, respectively. Total options outstanding at September 30, 2013 were 52,950, of which 4,033 options were unvested.

During the nine months ended September 30, 2013, 1,666 options were granted. The weighted average fair value of the options granted was $7.55 and was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: dividend yield of 0.00%; expected volatility of 101.70%; risk-free interest rate of 1.00%; and expected life of seven years. There were no options granted for the three months ended September 30, 2013. There were no options exercised for the three and nine months ended September 30, 2013. There were no options granted or exercised for the three and nine months ended September 30, 2012.

As of September 30, 2013, there are 211,159 restricted shares outstanding, of which 32,878 shares of restricted stock are vested and 178,281 shares are nonvested. As of December 31, 2012, there were 207,917 restricted shares outstanding, of which 14,549 shares of restricted stock were vested and 193,368 shares were nonvested. There were 3,242 shares of restricted stock issued during the nine months ended September 30, 2013 at an average fair value of $12.65. There were no shares of restricted stock issued during the three months ended September 30, 2013. There were 165,833 shares of restricted stock issued during the nine months ended September 30, 2012 at an average fair value of $6.93, and 6,666 restricted shares were forfeited.

The compensation expense related to options and restricted shares was $124,990 and $377,521 for the three and nine month period ended September 30, 2013, respectively. The compensation expense related to options and restricted shares was $130,344 and $294,384 for the three and nine month period ended September 30, 2012, respectively. As of September 30, 2013 and December 31, 2012, there was $669,507 and $993,423, respectively, of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under all of the Company's stock benefit plans. This cost is expected to be recognized over an average vesting period of 1.5 years.

Effective May 28, 2013, the Company executed a one-for-three reverse stock split. All outstanding options and restricted shares and earnings per share calculations have been adjusted for the effect of this reverse stock split. For additional information related to the reverse stock split, see Note 16, Other Events.