Stock Options and Stock-Based Compensation

12 Months Ended

Dec. 31, 2014

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

Stock Options and Stock-Based Compensation

Stock Options and Stock-Based Compensation

At the 2010 Annual Meeting, shareholders approved the 2010 Equity Incentive Plan (the "2010 Plan"). This reserves 400,000 shares of common stock for issuance in connection with stock options, restricted stock awards and other equity based awards to attract and retain the best available personnel, provide additional incentive to officers, employees and non-employee Directors and promote the success of our business. Such grants and awards will be structured in a manner that does not encourage the recipients to expose the Company to undue or inappropriate risk. Options issued under the 2010 Plan will qualify for treatment as incentive stock options for purposes of Section 422 of the Internal Revenue Code. Other compensation under the 2010 Plan will qualify as performance-based for purposes of Section 162(m) of the Internal Revenue Code, and will satisfy NASDAQ guidelines relating to equity compensation.

As of December 31, 2014, 72,684 shares of restricted stock had been granted under the 2010 Plan, as detailed in the following table:

Year Granted	Vesting Term (In Years)	Shares	Remaining Term (In Years)
2011	4.0	1,500	0.1
2011	5.0	5,500	1.1
2012	3.0	2,027	0.2
2012	4.0	2,704	1.2
2012	5.0	7,996	2.2
2013	2.0	8,530	0.1
2013	3.0	3,808	1.1
2013	5.0	14,776	3.1
2014	1.0	5,086	0.1
2014	2.0	10,335	1.0
2014	5.0	10,422	4.0
		72,684	1.9

The compensation cost related to these restricted stock grants was $1,178,000 and will be recognized over the vesting terms of each grant. In 2014, $431,000 of expense was recognized for these restricted shares, leaving $412,000 in unrecognized expense as of December 31, 2014. In 2013, $214,000 of expense was recognized for restricted shares, leaving $433,000 in unrecognized expense as of December 31, 2013.

The Company established a shareholder-approved stock option plan in 1995 (the "1995 Plan"), under which the Company granted options to employees for 600,000 shares of common stock. Only incentive stock options were granted under the 1995 Plan. The option price of each option grant was determined by the Options Committee of the Board of Directors, and in no instance was less than the fair market value on the date of the grant. An option's maximum term was ten years from the date of grant, with 50% of the options granted vesting two years from the date of grant and the remaining 50% vesting five years from the date of grant. As of January 16, 2005, all options under the 1995 Plan had been granted.

The Company applies the fair value recognition provisions of FASB ASC Topic 718, "Compensation – Stock Compensation", to stock-based employee compensation. As of December 31, 2014, all outstanding options were fully vested and all compensation cost for options had been recognized. A summary of the status of outstanding stock options as of December 31, 2014 and changes during the year then ended, is presented below.

	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In years)	Aggregate Intrinsic Value
Outstanding at December 31, 2013	42,000	$	18.00
Granted in 2014	—	—
Exercised in 2014	—	—			—
Forfeited in 2014	—	—
Outstanding at December 31, 2014	42,000	$	18.00	0.1	—
Exercisable at December 31, 2014	42,000	$	18.00	0.1	—