Stock Based Compensation

3 Months Ended

Mar. 31, 2016

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

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

Note 11. Stock Based Compensation

In connection with the approval of the Business Combination, the 2015 Omnibus Incentive Plan (the Plan) was approved by stockholders to provide incentives to key employees, directors, and consultants of the Company and its subsidiaries. Awards under the Plan are generally not restricted for any specific form or structure and could include, without limitation, stock options, stock appreciation rights, dividend equivalent rights, restricted stock awards, cash-based awards, or other right or benefit under the Plan. The Plan allowed for the lesser of (i) 1.60 million shares of common stock; or (ii) 8% of the outstanding common shares immediately following the consummation of the Business Combination as reserved and authorized for issuance under the Plan. At March 31, 2016 and December 31, 2015, there were 1.57 million shares of common stock authorized and available for issuance under the Plan.

Upon completion of the Business Combination, the Company approved initial grants of non-qualified stock option awards under the Plan to the current independent members of the Board of Directors. The stock option awards expire in ten years from the date of grant and vest over a period of one year – 20% of the options vested 30 days following the grant date, 40% of the options will vest six months following the grant date subject to the Director’s continued service and the remaining 40% of the options will vest 12 months following the grant date subject to the Director’s continued service. The exercise price is required to be set at not less than 100% of the fair market value of the Company’s common stock. The total compensation expense related to the Plan was $0.04 million for the three months ended March 31, 2016. The income tax benefit related to share-based compensation expense was nominal for the three months ended March 31, 2016. As of March 31, 2016, $0.05 million of total unrecognized compensation expense related to the share-based compensation Plan is expected to be recognized over a weighted-average period of 0.68 years. The total unrecognized share-based compensation expense to be recognized in future periods as of March 31, 2016 does not consider the effect of share-based awards that may be issued in future periods.

Outstanding and exercisable stock option awards as of March 31, 2016 totaled 33,336 and 2,226, respectively, and there were no grants, exercises, forfeitures, or cancellations of stock option awards during the three months ended March 31, 2016.

There was no aggregate intrinsic value for the options outstanding and exercisable at March 31, 2016 and December 31, 2015 because the exercise price exceeds the underlying share price.