STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2017

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

NOTE 9   STOCK-BASED COMPENSATION

During the six months ended June 30, 2017, 0.2 million stock options were granted to certain employees at a weighted average exercise price of $3.11 per share.  In comparison, during the six months ended June 30, 2016, the Company granted no stock options to employees or directors. 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,
	2017		2016		2017		2016
Risk-free interest rate	1.51	%	—	%	1.51	%	—	%
Dividend yield	0.32	%	—	%	0.32	%	—	%
Volatility factor of the expected market price of common stock	73	%	—	%	73	%	—	%
Weighted-average expected life of option	3.5 years		—		3.5 years		—
Weighted-average grant date fair value	1.59		—		1.60		—

During the three and six months ended June 30, 2017, the Company recorded stock option expense of $0.4 million and $0.7 million respectively.  This compares to $0.1 million and $0.5 million for the three and six months ended June 30, 2016.