Stock Based Compensation

6 Months Ended

Jun. 30, 2015

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

Stock Based Compensation

3. STOCK BASED COMPENSATION

The Company accounts for stock-based compensation under the provisions of ASC Topic 718, “Compensation—Stock Compensation”. The Company recognizes compensation cost in its financial statements for all share based payments granted, modified, or settled during the period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the related vesting period.

For the three months ended June 30, 2015 and 2014, the Company recorded compensation expense (included in general and administrative expense) of $81,000 and $113,000, respectively, related to stock options and $1,579,000 and $1,129,000, respectively, related to amortization of non-vested stock grants. For the six months ended June 30, 2015 and 2014, the Company recorded compensation expense of $117,000 and $149,000, respectively, related to stock options and $3,191,000 and $2,322,000, respectively, related to amortization of non-vested stock grants.

During the three months ended June 30, 2015 and 2014, employees and directors exercised 5,500 and 7,500 stock options respectively, and 5,995 and 7,720 shares of non-vested stock, respectively, vested. During the six months ended June 30, 2015 and 2014, employees and directors exercised 15,000 and 9,000 stock options respectively, and 11,229 and 17,600 shares of non-vested stock, respectively, vested.