STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2016

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

STOCK-BASED COMPENSATION

2.      stock-based compensation

The Company accounts for compensation expense associated with stock options and restricted stock units (“RSUs”) based on the fair value of the options and units on the date of grant.

The Company’s net income (loss) for each of the six months ended June 30, 2016 and 2015 includes approximately $415,000, of non-cash compensation expense related to the Company’s stock compensation grants. On January 1, 2016, the Company granted 53,882 RSUs to its board of directors as partial compensation for the 2016 year. On January 1, 2015, the Company granted 51,349 RSUs to its board of directors as partial compensation for the 2015 year. RSUs vest straight line on a quarterly basis over a one year period. The non-cash compensation expense related to all of the Company’s stock-based compensation arrangements is recorded as a component of selling, general and administrative expenses.

The estimated fair value of each RSU granted was determined based on the fair market value of the Company’s common stock on the date of grant.

A summary of the status of the Company’s stock option plans as of June 30, 2016 and changes during the six months ended June 30, 2016 is as follows:

	Options			Weighted average exercise price		Weighted average remaining contractual term (in years)		Aggregate intrinsic value
Outstanding at beginning of period		269,983		$	11.29
Forfeited		(55,000	)		15.27
Outstanding and vested at end of period		214,983		$	10.27		1.59	$	40,049

During the six months ended June 30, 2016, no stock options were granted or exercised.

The intrinsic value of all options exercised during the six months ended June 30, 2015 was approximately $230,500.