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STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2014
STOCK BASED COMPENSATION  
STOCK-BASED COMPENSATION

NOTE 7   STOCK-BASED COMPENSATION

 

During the three and nine months ended September 30, 2014, the Company granted stock options to certain employees and directors for an aggregate of 1.7 million shares of common stock at a weighted average exercise price of $2.90 per share. The options vest equally over a three-year period if the individual remains affiliated with the Company (subject to acceleration of vesting in certain events) and are exercisable for a period of 5 years from the date of issue. During the comparable periods in 2013, stock options granted to employees and directors amounted to 1.7 million shares of common stock at an exercise price of $2.25 per share. The principal assumptions used in applying the Black-Scholes option pricing model for these awards were as follows:

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Risk-free interest rate

 

1.01%

 

0.5% to 0.86%

 

1.01%

 

0.50%

 

Dividend yield

 

n/a

 

n/a

 

n/a

 

n/a

 

Volatility factor of the expected market price of common stock

 

70%

 

66% to 69%

 

70%

 

66%

 

Weighted-average expected life of option

 

3.5 years

 

3.5 years

 

3.5 years

 

3.5 years

 

Weighted-average grant date fair value

 

$1.45

 

$1.02

 

$1.45

 

$1.01

 

 

During the three and nine months ended September 30, 2014, the Company recorded stock option expense of $0.2 million and $0.9 million, respectively. This compares to $0.3 million and $1.0 million for the three and nine months ended September 30, 2013.