14. RESTRICTED STOCK, STOCK OPTIONS AND OTHER STOCK PLANS

On December 14, 2004, the Company adopted the 2004 Long-Term Compensation Plan (the “Plan”). The Plan provides for the issuance of stock options, stock appreciation rights, or SARs, restricted stock, deferred stock, dividend equivalents, bonus stock and awards in lieu of cash compensation, other stock-based awards and performance awards. Any shares issued under the Plan typically vest over service periods that range from one to five years. Stock options issued under the plan expire 10 years from the date they are granted.

The Plan authorized 1.0 million shares of our Class A Common Stock with an automatic annual increase on January 1 of each successive year of the lesser of (i) 3% of the Class A common stock outstanding or (ii) 107 shares. As of December 31, 2017 and 2016, there were 0.4 million and 0.3 million shares, respectively, available for issuance under the Plan (as amended).

The fair value of each option award is calculated on the date of grant using the Black-Scholes option pricing model and certain subjective assumptions. Expected volatilities are calculated based on our historical trading activities. We estimate forfeitures using a weighted average historical forfeiture rate. Our estimates of forfeitures will be adjusted over the requisite service period based on the extent to which actual forfeitures differ, or are expected to differ, from their estimate. The risk-free rate for the periods is based on the U.S. Treasury rates in effect at the time of grant. The expected term of options is based on the simplified method which assumes that the option will be exercised midway between the vesting date and the contractual term of the option. The Company is able to use the simplified method as the options qualify as “plain vanilla” options as defined by ASC 718, Stock Compensation.

The following table summarizes the assumptions used to calculate the fair value of options during 2017. No options were granted in 2016.


	2017
Weighted average fair value of options granted	$	1.20
Dividend yields		—
Expected volatility		70.60%-79.40	%
Weighted average expected volatility		72.73	%
Risk free interest rates		2.15	%
Weighted average expected term (in years)		6.25

The following table summarizes information about stock option activity:


	Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding at January 1, 2016		174		$	8.39
Granted		—			—
Exercised		—			—
Forfeited or Expired		(62	)		8.82

Outstanding at December 31, 2016		112		$	8.16
Granted		345			1.89
Exercised		—			—
Forfeited or Expired		(21	)		7.06

Outstanding at December 31, 2017		436		$	3.25	$	—

Exercisable at December 31, 2017		86		$	8.46	$	—

As of December 31, 2017 and 2016, the weighted-average remaining contractual term of unexercised stock options was 8.5 years and 4.8 years, respectively.

A summary of the Company’s restricted share activity is presented below:


	Shares			Weighted Average Grant Date Fair Value
Restricted nonvested at January 1, 2016		12		$	12.42
Granted		20			1.89
Vested		(12	)		12.42
Forfeited or Expired		—			—

Outstanding at December 31, 2016		20		$	1.89
Granted		245			2.13
Vested		(22	)		1.88
Forfeited or Expired		—			—

Nonvested at December 31, 2017		243		$	2.16

As of December 31, 2017 and 2016, there was $0.6 million and $0.1 million, respectively, of unrecognized compensation cost related to stock options and restricted stock issuances granted under the Plan. The Company intends to issue new shares of its common stock upon vesting of restricted stock grants or the exercise of stock options.

In November 2014, our board of directors approved a share repurchase program authorizing the Company to repurchase up to 429 thousand shares of our Class A common stock in one or more open market or privately negotiated transactions depending on market price and other factors.

At December 31, 2017 and 2016, 404 thousand shares of our Class A common stock remain available for repurchase pursuant to our share repurchase agreement.