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Options, Warrants, and Restricted Stock Units
6 Months Ended
Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Common Stock Options and Warrants

11. Options, Warrants, and Restricted Stock Units

The Company has established an equity incentive plan for employees and directors of the Company (the “Plan”). The purpose of the Plan is to create incentives designed to motivate recipients to significantly contribute toward the Company’s growth and profitability, as well as attract and retain persons of outstanding competence, and provide such persons with an opportunity to acquire an equity interest in the Company. In April 2015, the Company’s shareholders approved an amendment to the Plan to allow for the issuance of additional award types under the Plan. These award types include restricted stock and restricted stock units (“RSUs”), as well as performance shares. As of June 30, 2015 both stock options and RSUs had been issued to the Company’s employees under the Plan and there remains 156,956 shares available for future issuance under the Plan.

There were no grants, exercises, or cancellations of the Company’s stock options for the six months ended June 30, 2015. The following table summarizes the Company’s stock options outstanding as of June 30, 2015.

Date of Grant   Exercise Price ($)   Expiration Date   Remaining Contractual Life (Years)  

Number Outstanding

(in 000’s)

 

Number Exercisable

(in 000’s)

  02 /28/2014     8.00     12 /15/2015     0.5       33       33  
  03 /31/2014     8.00     03 /31/2019     4.0       163       105  
  04 /04/2014   8.69     04 /04/2019     4.0       14       9  
                          Total       210       147  
                                             

 

Through a series of amendments, the Company has modified the option originally issued to our President and CEO, Mr. Doug Raucy on February 28, 2014, to extend the expiration date to December 15, 2015, provided that Mr. Raucy is employed by the Company on the date of exercise. The Company has recognized an additional $8 in stock compensation expense for the six months ended June 30, 2015 as a result of these amendments.

On May 29, 2015, the Company’s Board of Directors granted RSUs to certain of its executive officers under the Plan. Each RSU granted entitles the grantee to one share of the Company’s common stock upon the vesting date of the RSU. The RSUs vest as follows: (i) 50% upon the date that the closing price of the Company’s common stock equals or exceeds $10.00 per share and; (ii) 50% upon the date that the closing price of the Company’s common stock equals or exceeds $12.00 per share. Prior to the vesting of the RSUs, the grantee will not be entitled to any dividends declared on the Company’s common stock. The RSUs do not expire, however, should the grantee discontinue employment with the Company for any reason other than death or disability, all unvested RSUs will be deemed forfeited on the date employment is discontinued. The following table summarizes RSU activity for the six months ended June 30, 2015.

Restricted Stock Units (in 000’s)   Number of Units   Weighted Average Grant Date Fair Value
Non-vested units, December 31, 2014     —       $ —    
   Granted     21       27  
   Vested     —         —    
   Forfeited     —         —    
Non-vested units, June 30, 2015     21     $ 27  

 

Due to the fact that the RSUs granted vest based upon market conditions, the Company used a Monte Carlo valuation model to estimate fair value as of the date of grant. Based on the Monte Carlo model, the estimated fair value on grant date was determined to be $27, which the Company will recognize as compensation expense over a derived service period of approximately two years.

 

Total stock based compensation expense for the six months ended June 30, 2015 and 2014 was $21 and $108, respectively. As of June 30, 2015, total unrecognized stock compensation expense of $89 remained, which will be recognized through March 31, 2018.

 

On February 24, 2015, the Company issued a warrant to purchase 1,500 shares of our common stock to 1347 Advisors LLC. See Note 12 – Related Party Transactions for further details on the issuance of this warrant. The following table summarizes the Company’s warrants outstanding as of June 30, 2015.

 

Date of Grant   Exercise Price ($)   Expiration Date   Remaining Contractual Life (Years)   Number Outstanding and Exercisable
  03 /31/2014     9.60     03 /30/2019     3.75       313  
  03 /31/2014     10.00     03 /31/2019     3.75       94  
  02 /24/2015     15.00     02 /24/2022     6.66       1,500  
                          Total       1,907