Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value

Information with respect to stock option activity as of and for the year ended December 31, 2017 is as follows:

	Number of Shares	Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands)		Weighted Average Remaining Contractual Life (Years)

Options outstanding at January 1, 2017	1,556,833	$	3.15
Options granted	-		-
Options exercised	(320,000)		2.05
Options forfeited	(190,000)		4.01
Options outstanding at December 31, 2017	1,046,833		3.33	$	928	1.28
Options expected to vest	24,000		1.90	$	33	4.72
Options exercisable at December 31, 2017	1,022,833	$	3.36	$	895	1.20

Information with respect to stock option activity as of and for the year ended December 31, 2016 is as follows:

	Number of Shares	Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands)		Weighted Average Remaining Contractual Life (Years)

Options outstanding at January 1, 2016	2,222,333	$	3.01
Options granted	40,000		2.25
Options exercised	(492,200)		1.86
Options forfeited	(213,300)		4.77
Options outstanding at December 31, 2016	1,556,833		3.15	$	1,573	2.05
Options expected to vest	72,000		1.87	$	117	5.45
Options exercisable at December 31, 2016	1,484,833	$	3.21	$	1,456	1.89

Schedule of Nonvested Share Activity

A summary of the status of the Company's nonvested options as of and for the year ended December 31, 2017 is presented below.

	Number of Shares	Weighted Average Fair Value

Nonvested options at January 1, 2017	72,000	$	0.97
Options granted	-		-
Options forfeited	-		-
Options vested during the period	(48,000)		0.97

Nonvested options at December 31, 2017	24,000	$	0.97

A summary of the status of the Company's nonvested options as of and for the year ended December 31, 2016 is presented below.

	Number of Shares	Weighted Average Fair Value

Nonvested options at January 1, 2016	218,522	$	0.89
Options granted	40,000		1.15
Options forfeited	(32,300)		0.91
Options vested during the period	(154,222)		0.92

Nonvested options at December 31, 2016	72,000	$	0.97

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions

The Company uses a Black-Scholes valuation model to estimate the fair value of the options at grant date based on the assumptions noted in the following table. Volatility represents an average of market estimates for implied volatility of the Company's common stock. The expected life is estimated based on an analysis of options already exercised and any foreseeable trends or changes in recipients' behavior. The risk-free interest rate is an interpolation of the relevant U.S. Treasury security maturities as of each applicable grant date:

	Years ended December 31,
	2017	2016
	[1]
Risk-free interest rates	-	1.53%
Dividend yield		0%
Expected life	-	7 years
Volatility	-	49.05%
Weighted average volatility		49.05%

[1] The Company did not grant stock options during the year ended December 31, 2017.

Restricted Stock Units

During the years ended December 31, 2017 and 2016, the Company issued RSUs to employees which vest upon the achievement of specific market-based or time-based measures. The fair value for RSU's is calculated based on the stock price on the grant date and expensed ratably over the requisite service period, which ranges between one and five years. The following table summarizes the information about vested and unvested restricted stock units for the years ended December 31, 2017 and 2016.

	Number of Shares	Weighted Average Fair Value

Nonvested RSUs at January 1, 2017	1,688,480	$	1.45
RSUs granted	644,677		3.24
RSUs forfeited	(5,500)		3.40
RSUs vested	(692,994)		1.89

Nonvested RSUs at December 31, 2017	1,634,663	$	1.96

Nonvested RSUs at January 1, 2016	1,367,500	$	0.76
RSUs granted	1,537,399		1.52
RSUs forfeited	(505,000)		0.76
RSUs vested	(711,419)		0.76

Nonvested RSUs at December 31, 2016	1,688,480	$	1.45

As of December 31, 2017, the Company had $1.6 million of unrecognized compensation expense related to the RSUs expected to be recognized on a pro-rata straight line basis over a weighted average remaining service period of approximately 3.9 years.