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STOCK BASED COMPENSATION
 9 Months Ended
Sep. 30, 2015
STOCK BASED COMPENSATION  
STOCK BASED COMPENSATION

 

NOTE B—STOCK BASED COMPENSATION

 

Stock Options

 

Compensation expense related to stock options and restricted stock awards recognized in operating results (general and administrative expenses) was approximately $0.4 million and $0.7 million for the three months ended September 30, 2015 and 2014, respectively, and approximately $2.1 and $1.7 million for the nine months ending September 30, 2015 and 2014, respectively.

 

The following assumptions were used to value stock options calculated using the Black-Scholes options pricing model:

 

 

 

Nine months ended September 30,

 

 

 

2015

 

2014

 

Dividend yield

 
0 

%
0 

%

Expected volatility

 
60.85 

%
52.8 

%

Risk-free interest rate

 
1.2 

%
1.1 

%

Expected life

 

3.5 years

 

3.5 years

 

 

 

 

 

 

Weighted

 

Weighted

 

 

 

 

 

 

 

Average

 

Average

 

Aggregate

 

 

 

Number

 

Exercise

 

Remaining

 

Intrinsic Value

 

 

 

of Options

 

Price

 

Term (in years)

 

(in thousands)

 

Outstanding at June 30, 2015

 
3,631,059

 

$
2.67

 

 

 

 

 

Granted

 
35,000

 
0.42

 

 

 

 

 

Exercised

 

—

 

—

 

 

 

 

 

Forfeited or expired

 
(158,864

)
3.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at September 30, 2015

 
3,507,195

 

$
2.63

 
3.90

 

$
3

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at September 30, 2015

 
738,765

 

$
4.14

 
2.87

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The total intrinsic value of options exercised during the nine months ended September 30 , 2015 and 2014 was approximately $0 and $1.8 million respectively.

 

As of September 30, 2015, total unrecognized stock-based compensation expense related to non-vested stock options was approximately $2.6 million, which we expect to recognize over a weighted average period of 1.8 years.

 

Restricted Shares

 

Restricted share activity for the nine months ended September 30, 2015 was as follows:

 

 

 

Shares

 

Weighted
Average
Fair Value

 

 

 

 

 

 

 

Outstanding at December 31, 2014

 
689,370

 

$
2.87

 

Granted

 
521,322

 
1.11

 

Vested

 
(697,630

)
1.79

 

Forfeited

 
(30,567

)
3.15

 

 

 

 

 

 

 

Outstanding at September 30, 2015

 
482,495

 

$
2.50

 

 

 

 

 

 

 

 

 

Restricted stock awards for executive officers and employees generally vest ratably over three years. Fair value of our restricted shares is based on our closing stock price on the date of grant.  As of September 30, 2015, total unrecognized stock-based compensation expense related to non-vested restricted shares was $0.8 million, which is expected to be recognized over a weighted average period of approximately 1.5 years.