STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2016

NOTE 9 STOCK-BASED COMPENSATION

During the six months ended June 30, 2016, no stock options were granted to employees or directors. In comparison, during the six months ended June 30, 2015, the Company granted stock options to certain employees for an aggregate of 0.1 million shares of common stock at a weighted average exercise price of $1.07 per share. The options vest equally over a three-year period (subject to acceleration of vesting in certain events) if the individual remains affiliated with the Company and are exercisable for a period of 5 years from the date of issue.

The principal assumptions used in applying the Black-Scholes option pricing model for these awards were as follows:


	Three months ended June 30,				Six months ended June 30,
	2016		2015		2016		2015
Risk-free interest rate	—	%	1.12	%	—	%	1.10	%
Dividend yield	—	%	—	%	—	%	—	%
Volatility factor of the expected market price of common stock	—	%	72.90	%	—	%	74.08	%
Weighted-average expected life of option	—		3.5 years		—		3.5 years
Weighted-average grant date fair value	—		0.58		—		0.56

During the three and six months ended June 30, 2016, the Company recorded stock option expense of $0.1 million and $0.5 million respectively. This compares to $0.2 million and $0.8 million for the three and six months ended June 30, 2015.