Stock-Based Compensation

At September 30, 2014, 3,959,337 shares reserved under the stock-based compensation plans were available for future grants.

During the nine months ended September 30, 2014, the Company granted 641,879 shares of restricted stock with a weighted-average grant date fair value of $4.80 per share, which vest between 2015 through 2019. During the same period, no stock options were granted. During the nine months ended September 30, 2013, the Company granted 296,417 additional shares of restricted stock with a weighted-average grant date fair value of $5.81 per share, which vest between 2014 and 2016. During the same period, the Company also granted 5,507 stock options with a weighted-average grant date fair value of approximately $6.80 per option. These stock options vest in 2016. The Company used the Black-Scholes option-pricing model with the following weighted-average assumptions to value options granted in 2013:



	2013
Dividend yield	—	%
Expected volatility	77.2	%
Risk-free interest rate	1.1	%
Expected option lives	6.0 years

The dividend yield was based on historical dividend information. The Company has not paid dividends since the third quarter of 2008 resulting in the dividend yield of 0.0%. The expected volatility was based on the historical volatility of the Company’s common stock price. The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the date of grant for periods corresponding with the expected lives of the options granted. The expected option lives represent the period of time that options are expected to be outstanding, giving consideration to vesting schedules and historical exercise and forfeiture patterns.

The Black-Scholes option-pricing model was developed for use in estimating the fair value of publicly-traded options that have no vesting restrictions and are fully transferable. The Black-Scholes model is affected by subjective assumptions including historical volatility of the Company’s common stock price. Because the Company has relatively low average trading volume in its common stock, its estimated volatility may be higher than publicly-traded companies with greater trading volumes.

The following table presents the activity related to stock options for the nine months ended September 30, 2014 and 2013:



	Options		Weighted- average exercise price		Weighted- average remaining contractual term (years)	Aggregate intrinsic value (000)
Options outstanding at January 1, 2014	111,571		$	38.92	6.2	$	—
Canceled / forfeited	(18,763	)	30.52		N/A	N/A
Expired	(5,188	)	125.83		N/A	N/A
Options outstanding at September 30, 2014	87,620		$	35.67	5.9	$	—
Options exercisable at September 30, 2014	69,126		$	43.50	5.3	$	—


Options outstanding at January 1, 2013	139,446		$	53.66	6.2	$	79.4
Granted	5,507		6.80		9.5	—
Exercised	(5,250	)	5.70		N/A	N/A
Canceled / forfeited	(16,193	)	128.43		N/A	N/A
Expired	(10,806	)	90.72		N/A	N/A
Options outstanding at September 30, 2013	112,704		$	39.31	6.4	$	9.9
Options exercisable at September 30, 2013	74,798		$	56.16	5.3	$	6.2

Stock-based compensation expense related to stock options for the nine months ended September 30, 2014 and 2013 was approximately $0.02 million and $0.05 million, respectively. As of September 30, 2014, there was approximately $0.03 million unrecognized compensation cost related to nonvested stock options which will be recognized over the remaining vesting periods of the underlying stock options.

The following table presents the activity related to nonvested restricted stock for the nine months ended September 30, 2014:



	Number of shares		Weighted- average grant date fair value per share
Nonvested as of January 1, 2014	354,270		$	9.41
Granted	641,879		4.80
Vested	(202,993	)	5.70
Canceled / forfeited	(7,970	)	5.81
Nonvested as of September 30, 2014	785,186		$	6.64

Restricted stock is generally scheduled to vest over a three to five year period, with the unearned compensation related to restricted stock amortized to expense on a straight-line basis. As of September 30, 2014, unrecognized compensation cost related to nonvested restricted stock totaled approximately $3.5 million. Total expense recognized by the Company for nonvested restricted stock for the nine months ended September 30, 2014 and 2013 was $0.9 million and $0.7 million, respectively. There was no unrecognized compensation cost related to restricted stock units (“RSUs”) at September 30, 2014 and December 31, 2013, as all RSUs were fully-vested at the date of the grant.