Share-Based Compensation

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

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. During the three month periods ended March 31, 2016 and 2015, the Company granted 800,000 and 590,000 options, respectively, for the purchase of shares under the 2008 Plan. As of March 31, 2016, 1,600,318 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 month periods ended March 31, 2016 and 2015, there were no options for the purchase of shares granted under the 2011 Plan. As of March 31, 2016, 90,120 shares remain available for grant under the 2011 Plan.

The fair value of the stock options granted during the three month period ended March 31, 2016, was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:



	Three Months Ended March 31,
	2016
Expected life (years)	4.67
Expected volatility	82.8%
Expected dividend yield	—%
Risk-free interest rate	1.7%
Weighted average fair value of options granted during the period	$0.10

The following table summarizes stock option activity for the three month period ended March 31, 2016:



	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, 2015	4,398,700		$	0.43
Granted	800,000		0.15
Exercised	—		—
Forfeited and Expired	(165,000	)	0.59
Outstanding balance at March 31, 2016	5,033,700		0.38		8.41	$0
Options exercisable at March 31, 2016	2,104,389		$	0.51	7.44	$0

There were no options exercised during the three month periods ended March 31, 2016 and 2015. Options for the purchase of an aggregate of 283,168 shares of common stock vested during the three month period ended March 31, 2016, and the aggregate fair value at grant date of these options was $0.07 million. As of March 31, 2016, 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 1.74 years.

The Company recorded $0.1 million of share-based compensation expense in selling, general and administrative expenses for the three month periods ended March 31, 2016 and 2015.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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