Stock-based Compensation

6 Months Ended

Jun. 30, 2014

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

Stock-based Compensation

Stock-based Compensation

During the three and six months ended June 30, 2014, 200 and 755 options were vested, respectively. There were no options granted for the three and six months ended June 30, 2014. During the six months ended June 30, 2014, 555 options were exercised. There were no options exercised for the quarter ended June 30, 2014. Total options outstanding at June 30, 2014 were 51,118, of which 2,557 were unvested.

During the three and six months ended June 30, 2013, 534 and 1,802 options were vested, respectively. There were no options exercised for the three or six months ended June 30, 2013. During the six months ended June 30, 2013, 1,666 options were granted. The weighted average fair value of the options granted was $7.56 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 during the three months ended June 30, 2013.

As of June 30, 2014, there are 210,792 shares of restricted stock outstanding, of which 49,288 shares are vested and 161,504 shares are nonvested. As of December 31, 2013, there were 211,159 shares of restricted stock outstanding, of which 34,316 shares were vested and 176,843 shares were nonvested. There were no shares of restricted stock issued during the three or six months ended June 30, 2014. There were 3,242 shares of restricted stock issued during the three and six months ended June 30, 2013 at an average fair value of $12.65.

The compensation expense related to options and restricted shares was $100,939 and $215,469 for the three and six months ended June 30, 2014, respectively. The compensation expense related to options and restricted shares was $124,040 and $252,530 for the three and six month period ended June 30, 2013, respectively. As of June 30, 2014 and December 31, 2013, there was $326,501 and $544,896, 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 2.2 years.