Stockholders Equity

6 Months Ended

Jun. 30, 2013

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

Stock-based compensation expense was approximately $70,000 and $166,000 for the three months ended June 30, 2013 and 2012, respectively and approximately $150,000 and $351,000 for the six months ended June 30, 2013 and 2012, respectively. As of June 30, 2013, there was approximately $102,000 of total unrecognized compensation cost related to non-vested share-based compensation awards granted under Empire’s plans. That cost is expected to be recognized over the remaining vesting period of less than one year. This expected cost does not include the impact of any future stock-based compensation awards.

On February 12, 2013, Empire's Board of Directors (the "Board") authorized the issuance of 75,530 shares of our common stock in payment of dividends due for the year ended December 31, 2012 on our Series B Preferred Stock. The recorded value of these shares was approximately $167,000.

On April 30, 2013, Empire commenced its April 2013 Rights Offering. All holders of record of common stock and Series B Preferred Stock were offered one non-transferable subscription right for each five shares of common stock owned,

or into which the Series B Preferred Stock was convertible on the record date. Each subscription right enabled the holder to purchase one share of common stock, at a subscription price of $1.8901 per share. In addition, holders of subscription rights who fully exercise their basic subscription rights were entitled to oversubscribe for additional shares of common stock up to the number of shares purchased pursuant to the exercise of their basic subscription rights. The expiration date of the April 2013 Rights Offering was May 30, 2013.

In connection with the April 2013 Rights Offering, on April 11, 2013, the Company and Kien Huat , the Company's largest stockholder, entered into a standby purchase agreement (the “Standby Purchase Agreement”). Pursuant to the Standby Purchase Agreement Kien Huat agreed to exercise in full its basic subscription rights granted pursuant to the April 2013 Rights Offering within ten days of its grant. In addition, Kien Huat agreed it would exercise all rights not otherwise exercised by the other holders in the April 2013 Rights Offering to acquire up to one share less than 20% of the Company's issued and outstanding common stock prior to the commencement of the April 2013 Rights Offering.

At the completion of the April 2013 Rights Offering, the Company issued a total of 6,032,153 shares of common stock and raised approximately $11.4 million in gross proceeds. This includes 1,383,819 shares issued to holders upon exercise of their basic subscription rights, 3,650,849 shares issued to Kien Huat, upon exercise of its basic subscription rights, 213,138 shares issued to holders upon exercise of their over subscription rights and 784,347 shares issued to Kien Huat pursuant to the terms of the Standby Purchase Agreement. The Company paid Kien Huat a fee of $40,000 for the shares purchased pursuant to the Standby Purchase Agreement and reimbursed Kien Huat for its expenses related to the Standby Purchase Agreement in an amount of $40,000 for aggregate net proceeds of approximately $8,302,963 from Kien Huat to the Company. Kien Huat owns approximately 62.71% of the outstanding shares of the Company’s common stock.

The Company anticipates using the net proceeds of the April 2013 Rights Offering, which was approximately $11.2 million following the deduction of expenses relating to the April 2013 Rights Offering, to fund the expenses of the Company’s Casino Project, which may include permitting, infrastructure and shared master planning costs and expenses, and for general working capital purposes.