Share-Based Compensation

6 Months Ended

Jun. 30, 2015

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

SHARE-BASED COMPENSATION

We measure and account for share-based awards in accordance with ASC Topic 718, “Compensation - Stock Compensation”. Share-based compensation expense associated with stock options with vesting contingent upon the achievement of service conditions is recognized on a straight-line basis, net of estimated forfeitures of unvested stock options, over the requisite service period the awards are expected to vest. We estimate the aggregate intrinsic value of stock options with vesting contingent upon the achievement of service conditions as of the date the award was granted using the Black-Scholes option pricing model. The Black-Scholes option-pricing model requires the use of certain input variables, such as expected volatility, risk-free interest rate and expected award life.

In April 2015, the Company granted 22,908 restricted stock awards (“RSAs”) to certain non-employee Board of Directors, pursuant to the 2014 Equity Plan. The RSAs will become fully vested in April 2016. The RSAs have a weighted average grant-date fair value of $8.73 share. The fair value of the outstanding shares of restricted stock awards will be recorded as share-based compensation expense over the vesting period.

Share-Based Award Activity

A summary of restricted stock awards activity during the six months ended June 30, 2015 is as follows:



	Number of Shares (in thousands)	Weighted Average Grant Date Fair Value per Share
Nonvested, December 31, 2014	—	$	—
Granted	23	$	8.73
Vested	—	$	—
Forfeited	—	$	—
Nonvested, June 30, 2015	23	$	8.73

A summary of stock option activity during the six months ended June 30, 2015 is as follows:



	Number of Shares (in thousands)	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Options outstanding, December 31, 2014	500	$	7.49
Granted	—	—
Exercised	—	—
Forfeited	—	—
Options outstanding, June 30, 2015	500	$	7.49	9.63	$	397
Options exercisable, June 30, 2015	—	$	—	—	$	—

A summary of our unvested stock options during the six months ended June 30, 2015 is as follows:



	Number of Shares (in thousands)	Weighted Average Per Share Grant Date Fair Value
Unvested, December 31, 2014	500	$	2.88
Granted	—	$	—
Vested	—	$	—
Forfeited	—	$	—
Unvested, June 30, 2015	500	$	2.88

Valuation of Share-Based Awards

The weighted average per share grant date fair value of restricted stock awards granted during the six months ended June 30, 2015 was $8.73, determined based on the market price of our common stock on the date of grant, which approximates the intrinsic value.

We utilize the Black-Scholes option pricing model for estimating the grant date fair value of stock options. There were no stock options issued during the six months ended June 30, 2015 and June 30, 2014.

Share-Based Compensation Expense

Share-based compensation expense was $0.1 million and $0.2 million for the three and six months ended June 30, 2015, respectively. There were no share-based awards issued prior to October 27, 2014. At June 30, 2015, the estimated total remaining unamortized share-based compensation expense related to unvested restricted stock awards and stock options, net of forfeitures, was $1.4 million which is expected to be recognized over a weighted-average period of 3.9 years.