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Stock-Based Compensation

6 Months Ended

Jun. 30, 2018

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

Stock Options:

A summary of option activity under our 1998 Stock Option Plan as of December 31, 2017, and changes during the six months ended June 30, 2018 is presented below.


	Number of Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding, December 31, 2017	327,270	$	20.21	4.28	$	2,255

Exercised	(8,500)	18.51		—	86
Canceled/Forfeited	(500)	28.15		—	—

Outstanding, June 30, 2018	318,270	$	20.24	3.82	$	1,579
Exercisable, June 30, 2018	296,738	$	19.67	3.47	$	1,579

The following table summarizes information about our stock options outstanding at June 30, 2018:


Range of Exercise Prices	Options Outstanding												Options Exercisable
		Shares		Weighted Average Remaining Contractual Life (years)			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
$0.01-15.70	65,852		1.06		$	9.82		65,852		$	9.82
$15.71-17.81	67,750		1.37		17.53			67,750		17.53
$17.82-20.48	54,250		2.97		19.39			54,250		19.39
$20.49-33.36	130,418		6.83		27.26			108,886		27.09
	318,270		3.82		$	20.24		296,738		$	19.67

The summary of the status of our unvested stock options as of December 31, 2017 and changes during the six months ended June 30, 2018 is presented below.


Unvested stock options:	Shares	Weighted Average Grant Date Fair Value Per Share
Unvested at December 31, 2017	48,581	$	11.41

Vested	(26,549)	10.97
Canceled/Forfeited	(500)	11.93
Unvested at June 30, 2018	21,532	$	11.93

As of June 30, 2018, there was $192,000 of unrecognized compensation cost related to unvested options. Such cost is expected to be recognized over a weighted-average period of two years. Total compensation expense for stock options was $97,140 and $207,560 for the six months ended June 30, 2018 and 2017, respectively.

Restricted Shares/Units:In accordance with the Company's employment agreement with Stephen Taylor, the Company's Chief Executive Officer, the Compensation Committee reviewed his performance in determining the issuance of restricted common stock. Based on this review which included consideration of the Company's 2017 performance, Mr. Taylor, was awarded 84,700 restricted shares/units on March 15, 2018, which vest over three years, in equal annual installments, beginning March 15, 2019. On March 15, 2018, the Compensation Committee awarded 20,000 restricted shares/units to each of G. Larry Lawrence, our CFO, and James Hazlett, our Vice President of Technical Services. The restricted shares to Messrs. Lawrence and Hazlett vest over three years, in equal annual installments, beginning March 15, 2019. We also awarded and issued 16,288 shares of restricted common stock to the independent members of our Board of Directors as partial payment for 2018 services as directors. The restricted stock issued to our directors vests over one year, in quarterly installments, beginning March 31, 2019. Total compensation expense related to restricted awards was $978,432 and $2,209,455 for the six months ended June 30, 2018 and 2017, respectively. As of June 30, 2018, there was a total of $3,864,982 of unrecognized compensation expense related to these shares/units which is expected to be recognized over the next three years.