Employee Stock Benefit Plans

6 Months Ended

Jun. 30, 2015

Employee Stock Benefit Plans [Abstract]

Note 13

Employee Stock Benefit Plans:

Post-Reverse Merger

The Company has a Non-Employee Director Stock Option Plan. This plan has authorized 370,000 shares; of which 7,000 shares had been issued or were reserved for issuance as awards of shares of common stock, and 12,912 shares were reserved for outstanding stock options. The directors, who were elected to our Board in connection with the reverse merger, each received a one-time stock award of 5,000 shares of the Company's common stock in January 2012.

In addition, the Company has a 2005 Equity Compensation Plan ("2005 Equity Plan"). The 2005 Equity Plan has authorized 6,000,000 shares, of which 3,071,095 shares had been issued or were reserved for issuance as awards of shares of common stock, and 859,026 shares were reserved for outstanding options as of June 30, 2015.

Stock option activity under all of the Company's share-based compensation plans for the six months ended June 30, 2015 was as follows:

	Number of Options	Weighted Average Exercise Price
Outstanding, January 1, 2015	1,159,554	$16.23
Granted	-	-
Exercised	-	-
Cancelled	(287,616)	14.79
Outstanding, June 30, 2015	871,938	$16.70
Options exercisable at June 30, 2015	572,338	$16.52

At June 30, 2015, there was $5,177 of total unrecognized compensation cost related to non-vested option grants and stock awards that is expected to be recognized over a weighted-average period of 3.11 years. The intrinsic value of options outstanding and exercisable at June 30, 2015 was not significant.

The Company calculates expected volatility for share-based grants based on historic daily stock price observations of its common stock. The Company has used historical data to estimate expected employee behaviors related to option exercises and forfeitures and included these expected forfeitures as a part of the estimate of expense as of the grant date.

The Company uses the Black-Scholes option-pricing model to estimate fair value of grants of stock options. With respect to grants of options, the risk-free rate of interest is based on the U.S. Treasury rates appropriate for the expected term of the grant or award.

On February 26, 2015, the Company issued 1,495,000 restricted stock units to a number of employees. The restricted shares have a purchase price of $0.01 per share and vest, and cease to be subject to the Company's right of repurchase, over a four-year period. The Company determined the fair value of the awards to be the quoted market price of the Company's common stock units on the date of issuance less the value paid for the award. The aggregate fair value of these restricted stock units issued was $2,766.

Total stock based compensation expense was $5,397, including $4,046 that is included in discontinued operations, and $2,556 for the six months ended June 30, 2015 and 2014, respectively, including amounts relating to consultants.