5 .	Share-based Compensation

The Company has

one

active stock incentive plan for employees and directors, the

2007

Stock Incentive Plan, which provides for awards of stock options to purchase shares of common stock, stock appreciation rights, restricted and unrestricted shares of common stock, restricted stock units (“RSUs”) and performance share awards (“PSAs”). In addition, the Company has

one

inactive stock option plan, the

1995

Stock Option Plan for Nonemployee Directors, under which previously granted options remain outstanding.

The Company recognizes share-based compensation cost, based on grant date estimated fair value of the awards, over the period during which the employee or director is required to provide service in exchange for the award, and as forfeitures occur, the associated compensation cost recognized to date is reversed. The following table summarizes share-based compensation expense recorded (in thousands):

	Three Months Ended March 31,
	2017		2016

Cost of sales	$	81	$	(28	)
Selling, general and administrative expense		190		206
Total	$	271	$	178

As of

March

31,

2017,

unrecognized compensation expense related to the unvested portion of the Company’s RSUs and PSAs was

$0.7

million, which is expected to be recognized over a weighted average period of

0.8

years.

Stock Option Awards

A summary of option activity under the Company’s stock option plans as of

March

31,

2017

and changes during the

three

months then ended is presented below:

	Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
					(in years)		(In thousands)
Balance, December 31, 2016		26,000	$	24.97
Options granted		-		-
Options exercised		-		-
Options canceled		-		-
Balance, March 31, 2017		26,000		24.97
Exercisable, March 31, 2017		26,000		24.97		2.78	$	-

Restricted Stock Units and Performance

Awards

A summary of activity under the Company’s RSUs and PSAs as of

March

31,

2017

and changes during the

three

months then ended is presented below:

	Number of RSUs and PSAs			Weighted Average Grant Date Fair Value
Unvested RSUs and PSAs as of December 31, 2016		221,791		$	17.36
RSUs and PSAs granted		-			-
Unvested RSUs and PSAs canceled		(46,988	)		43.68
RSUs vested		(5,220	)		36.00
Unvested RSUs as of March 31, 2017		169,583			9.50

RSUs and PSAs are measured at the estimated fair value on the date of grant. RSUs are service-based awards and vest according to vesting schedules, which range from immediate to ratably over a

three

-year period. PSAs are service-based awards that vest over a

three

-year period and have a market-based payout condition. Vesting of the market-based PSAs is dependent upon the performance of the market price of the Company’s stock relative to a peer group of companies. In the

three

months ended

March

31,

2017,

the remaining PSAs were canceled because the market-based conditions were not achieved, and the actual number of common shares that were issued was determined by multiplying the PSAs by a payout percentage of

0%.