Share-Based Compensation

9 Months Ended

Sep. 30, 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. There were no options for the purchase of shares granted under the 2008 Plan during the three month periods ended September 30, 2016 and 2015. During the nine month periods ended September 30, 2016 and 2015, the Company granted 153,332 and 40,000 options, respectively, for the purchase of shares under the 2008 Plan. As of September 30, 2016, 42,124 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, 2016, there were no options for the purchase of shares granted under the 2011 Plan. During the three and nine month periods ended September 30, 2015, there were 16,667 and 46,667 options, respectively, for the purchase of shares granted under the 2011 Plan. There were no stock awards granted under the 2011 Plan during the three month period ended September 30, 2016. During the nine month period ended September 30, 2016, the Company granted a total of 166,665 stock awards under the 2011 Plan to non-employee members of the Board of Directors that immediately vested. During the three and nine month periods ended September 30, 2015, the Company granted 33,333 and 36,111 stock awards, respectively, under the 2011 Plan to non-employee members of the Board of Directors that immediately vested. As of September 30, 2016, 243,693 shares remain available for grant under the 2011 Plan.

There were no options granted during three month period ended September 30, 2016. The fair value of the stock options granted during the nine month period ended September 30, 2016, were estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:



	Nine Months Ended September 30,
	2016
Expected life (years)	5.1
Expected volatility	81.0%
Expected dividend yield	—%
Risk-free interest rate	1.4%
Weighted average fair value of options granted during the period	$1.33

The following table summarizes stock option activity for the nine month period ended September 30, 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	286,568		$	6.46
Granted	153,332		2.05
Exercised	—		—
Forfeited and Expired	(46,690	)	5.43
Outstanding balance at September 30, 2016	393,210		4.87		8.23	$0
Options exercisable at September 30, 2016	177,807		$	7.15	7.07	$0

There were no options exercised during the nine month period ended September 30, 2016. There were 3,333 options with a weighted average exercise price of $6.75 exercised during the nine month period ended September 30, 2015. Options for the purchase of an aggregate of 66,668 shares of common stock vested during the nine month period ended September 30, 2016, and the aggregate fair value at grant date of these options was $0.3 million. As of September 30, 2016, there was approximately $0.2 million of total unrecognized compensation cost related to stock options. The cost is expected to be recognized over a weighted average period of 1.93 years.

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, 2016. 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.

- 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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