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Stock-Based Compensation

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Stock Options:

A summary of option activity under our 1998 Stock Option Plan as of December 31, 2018, and changes during the nine months ended September 30, 2019 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, 2018	283,686	$	20.46	3.58	$	434

Exercised	(56,352)	8.97		—	474
Canceled/Forfeited	(3,000)	27.91		—	—

Outstanding, September 30, 2019	224,334	$	23.25	3.67	$	—
Exercisable, September 30, 2019	213,901	$	23.01	3.49	$	—

The following table summarizes information about our stock options outstanding at September 30, 2019:


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	8,500		2.32		$	14.89		8,500		$	14.89
$15.71-17.81	42,000		0.82		17.54			42,000		17.54
$17.82-20.48	50,500		1.59		19.43			50,500		19.43
$20.49-33.36	123,334		5.59		27.33			112,901		27.26
	224,334		3.67		$	23.25		213,901		$	23.01

The summary of the status of our unvested stock options as of December 31, 2018 and changes during the nine months ended September 30, 2019 is presented below.


Unvested stock options:	Shares	Weighted Average Grant Date Fair Value Per Share
Unvested at December 31, 2018	20,865	$	11.93

Vested	(10,432)	11.93

Unvested at September 30, 2019	10,433	$	11.93

As of September 30, 2019, there was $46,105 of unrecognized compensation cost related to unvested options. Such cost is expected to be recognized over a weighted-average period of one year. Total compensation expense for stock options was $91,984 and $127,055 for the nine months ended September 30, 2019 and 2018, 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 2018 performance, Mr. Taylor, was awarded 131,674 restricted shares/units on March 29, 2019, which vest over three years, in equal annual installments, beginning March 29, 2020. On March 29, 2019, 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 29, 2020. We also awarded and issued 23,136 shares of restricted common stock to the independent members of our Board of Directors as partial payment for 2019 services as directors. The restricted stock issued to our directors vests over one year, in quarterly installments, beginning March 31, 2020. Total compensation expense related to restricted awards was $1.7 million and $1.6 million for the nine months ended September 30, 2019 and 2018, respectively. As of September 30, 2019, there was a total of $4.3 million of unrecognized compensation expense related to these shares/units which is expected to be recognized over the next three years.