Share-Based Compensation

Employee Share-Based Compensation Plans - On May 29, 2008, the Company's shareholders approved the 2008 Omnibus Employee Incentive Plan (the "2008 Plan") providing for the grant of stock options, stock appreciation rights, non-vested stock and performance shares. There were no options for the purchase of shares granted under the 2008 Plan during the three month period ended September 30, 2015. During the nine month period ended September 30, 2015, the Company granted 600,000 options for the purchase of shares under the 2008 Plan. During the three and nine month periods ended September 30, 2014, the Company granted 6,000 and 349,700 options, respectively, for the purchase of shares under the 2008 Plan. As of September 30, 2015, approximately 3,976,200 shares remain available for grant under the 2008 Plan.

On May 24, 2011, the Company's shareholders approved the 2011 Omnibus Employee Incentive Plan, as subsequently amended and restated, (the "2011 Plan") providing for the grant of stock options and non-vested stock awards. During the three and nine month periods ended September 30, 2015, the Company granted 250,000 and 700,000 options, respectively, for the purchase of shares under the 2011 Plan. There were no options for the purchase of shares granted under the 2011 Plan during the three month period ended September 30, 2014. During the nine month period ended September 30, 2014, the Company granted 300,000 options to purchase shares under the 2011 Plan. During the nine month periods ended September 30, 2015 and September 30, 2014, the Company also granted a total of 541,667 and 400,000, respectively, of stock awards to non-employee members of the Board of Directors that immediately vested. As of September 30, 2015, approximately 550,000 shares remain available for grant under the 2011 Plan.

The fair value of the stock options granted during the three and nine month periods ended September 30, 2015, was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:



	Three Months Ended September 30,	Nine Months Ended September 30,
	2015	2015
Expected life (years)	5.04	5.04
Expected volatility	64.6% - 66%	64.1% - 66%
Expected dividend yield	—%	—%
Risk-free interest rate	2.1% - 2.4%	1.4% - 2.4%
Weighted average fair value of options granted during the period	$0.10	$0.23

The following table summarizes stock option activity for the nine month period ended September 30, 2015:



	Number of Options		Weighted Average Exercise Price Per Option		Weighted Average remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding balance at December 31, 2014	3,652,200		0.67
Granted	1,300,000		0.42
Exercised	(50,000	)	0.45
Forfeited and Expired	(1,203,500	)	0.94
Outstanding balance at September 30, 2015	3,698,700		0.49		8.31	$0
Options exercisable at September 30, 2015	1,806,921		$	0.54	7.61	$0

The aggregate intrinsic value disclosed in the table above represents the difference between the Company's closing stock price on the last trading day of the quarter ended September 30, 2015, and the exercise price, multiplied by the number of in-the-money stock options.

There were 50,000 options with a weighted average exercise price of $0.45 exercised during the nine month period ended September 30, 2015. During the three and nine month periods ended September 30, 2014, an aggregate of 3,300 and 57,300 stock options valued with a weighted average exercise price of $0.65 and $0.51, respectively, were exercised. Options for the purchase of an aggregate of 744,321 shares of common stock vested during the nine month period ended September 30, 2015, and the aggregate fair value at grant date of these options was $0.26 million. As of September 30, 2015, there was approximately $0.4 million of total unrecognized compensation cost related to stock options. The cost is expected to be recognized over a weighted average period of 1.67 years.

The Company recorded $0.2 million and $0.4 million, respectively, of share-based compensation expense in selling, general and administrative expenses for the three and nine month periods ended September 30, 2015. The Company recorded $0.1 million and $0.5 million, respectively, of share-based compensation expense in selling, general and administrative expenses for the three and nine month periods ended September 30, 2014. In connection with the resignation of its former Chief Financial Officer which resulted in the forfeiture of certain share-based awards, the Company reversed previously recorded share-based compensation expense of $0.03 million during the three month period ended September 30, 2015.