XML 84 R19.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Stock-Based Compensation Plan | 12 Months Ended
--- | ---
Dec. 31, 2013
Stock-Based Compensation Plan [Abstract] |
Stock-Based Compensation Plan | NOTE 13. STOCK-BASED COMPENSATION PLAN Under the Company’s 2005 Stock Incentive Plan (the “2005 Plan”), the Board of Directors has flexibility to determine the type and amount of awards to be granted to eligible participants, who must be employees, directors, officers or consultants of the Company or its subsidiaries. The 2005 Plan allows for grants of incentive stock options, nonqualified stock options, restricted stock awards, stock appreciation rights, and restricted units. The aggregate number of shares of common stock that may be granted through awards under the 2005 Plan to any employee in any calendar year may not exceed 500 shares. The 2005 Plan will continue in effect until June 2015 unless terminated sooner. As of December 31, 2013, the number of shares authorized and reserved for issuance under the 2005 Plan is 5,732, subject to automatic annual increase equal to 4% of the total number of shares of the Company’s outstanding common stock. Options Granted: During the year ended December 31, 2013, the Company issued 628 stock options, under the Company’s 2005 Plan, to directors and employees of the Company. Of the 628 options issued, 40 will vest in four equal consecutive quarterly tranches from the date of grant. Five options granted will vest in three installments as follows: Two shall vest on March 31, 2015 and the remaining shares shall vest equally on March 31, 2016 and March 31, 2017. 98 options granted will vest in five installments as follows: 14 shares shall vest on December 31, 2014, 27 shares shall vest on December 31, 2015, 31 shares shall vest on December 31, 2016, 19 shares shall vest on December 31, 2017, and 7 shares shall vest on December 31, 2018. The remaining 485 vested immediately. For computing the fair value of the stock-based awards, the fair value of each option grant has been estimated as of the date of grant using the Black-Scholes option-pricing model with the following assumptions:
|  | 2013 |  | 2012 |  | 2011
Number of options |  | 143 |  | 485 |  | 270 |  | 500 |  | 233
Option vesting period |  | 1-5 Years |  | Immediate |  | 1-5 Years |  | 3-6 Years |  | 1-5 Years
Grant price |  | $8.02 - $13.38 |  | $10.40 - $14.71 |  | $7.64 - $9.89 |  | $13.00 - $16.00 |  | $6.22 - $8.86
Dividend yield |  | 0.00% |  | 0.00% |  | 0.00% |  | 0.00% |  | 0.00%
Expected volatility (a) |  | 52.8% - 55.2% |  | 51.6% - 53.9% |  | 53.3% - 59.2% |  | 50.3% - 58.6% |  | 55.8% - 59.6%
Risk-free interest rate |  | 1.04% - 2.45% |  | 1.36% - 1.62% |  | .71% - 1.44% |  | .39% - 1.04% |  | 1.41% - 2.92%
Expected life (years) |  | 5.31 - 7.08 (b) |  | 5.00 (c) |  | 5.31 - 7.08 (b) |  | 3.25 - 6.25 (b) |  | 5.31 - 6.95 (b)
Discount for post-vesting restrictions (d) |  | 0.0% |  | 11.5% - 35.0% |  | 0.0% |  | 0.0% |  | 0.0%
Weighted average fair value |  | $4.23 - $7.53 |  | $1.59 - $5.25 |  | $4.40 - $5.34 |  | $2.64 - $3.94 |  | $3.65 - $5.04
| (a) |  | Since the Company’s historical volatility was not representative of the ongoing future business, the Company’s historical volatility was based on a combination of the Company’s volatility and the historical volatility of a peer group of companies within similar industries and similar size as the Company.
| (b) |  | Because the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term for these grants, the Company utilized the simplified method in developing an estimate of the expected term of these options.
| (c) |  | The Company considered the applicable employee groups as well as the anticipated exercise behavior over the contractual term of the award in developing an estimate of the expected term of these options.
| (d) |  | Because options with post-vesting restrictions create a lack of marketability, the Company discounted the market price used in the Black-Scholes option-pricing model. The Company utilized the Finnerty and Forward Sale models to calculate the discount.
Using these assumptions, the fair value of the stock options granted during the years ended December 31, 2013, 2012, and 2011 was $2,303, $3,011, and $987, respectively, which will be amortized over the vesting period of the options. Stock Awards: During the year ended December 31, 2013, the Company awarded three shares of common stock to an employee. At the date the awards were issued the common stock was valued at $7.85 per share. Restricted Stock Awards: During the year ended December 31, 2013, the Company awarded 90 shares of restricted stock to employees. The vesting of 72 shares is contingent on meeting various service conditions and sales targets, which were deemed probable at the date of grant and as of December 31, 2013. The remaining 18 shares vest in two to five years assuming the employees remain employed through the vesting date. The fair value of the restricted stock awards granted during the year ended December 31, 2013 was $936, which is equal to the market value of the underlying shares on the date of grant. The fair value will be recognized over the vesting period of two to five years. If the service conditions and sales targets are not met, any recognized compensation cost will be reversed. On January 17, 2011, the Company granted to Mr. Kanders a seven-year restricted stock award of 250 shares of common stock pursuant to the Company’s 2005 Plan, which award will vest on the date the Fair Market Value (as defined in the 2005 Plan) of the Company’s common stock shall have equaled or exceeded $14.00 per share for 20 consecutive trading days. For computing the fair value of the 250 seven-year restricted stock-based awards, the fair value of each restricted stock award grant has been estimated as of the date of grant using the Monte-Carlo pricing model with the following assumptions:
|  | 2011
Number issued |  | 250
Vesting Period |  | $14.00 Stock Price target
Grant Price |  | $7.34
Dividend Yield |  | 0.00%
Expected Volatility (a) |  | 58.0%
Risk-free Interest Rate |  | 2.64%
Expected Life (Years) |  | 1.90
Weighted Average Fair Value |  | $6.27
| (a) |  | Since the Company’s historical volatility was not representative of the ongoing future business, the Company’s historical volatility was based on a combination of the Company’s volatility and the historical volatility of a peer group of companies within similar industries and similar size as the Company.
Using these assumptions, the fair value of the restricted stock awards granted during the year ended December 31, 2011 was $1,567, which was amortized through December 31, 2012. The total non-cash stock compensation expense related to stock options and restricted stock awards recorded by the Company was as follows:
|  | Year Ended December 31,
|  | 2013 |  | 2012 |  | 2011
Restricted stock awards |  | $ | 81 |  | $ | 739 |  | $ | 2,462
Stock options |  |  | 2,904 |  |  | 1,027 |  |  | 629
Stock awards |  |  | 25 |  |  | - |  |  | -
Total |  | $ | 3,010 |  | $ | 1,766 |  | $ | 3,091
The Company classified $221 and $2,789 of stock-based compensation costs as cost of sales and selling, general and administrative expense during the year ended December 31, 2013, respectively. A summary of changes in outstanding options and restricted stock awards during the year ended December 31, 2013 is as follows:
|  | Options |  | Weighted Average Exercise Price |  | Aggregate Intrinsic Value |  | Restricted Stock Awards
Outstanding at December 31, 2012 |  |  | 2,712 |  | $ | 8.98 |  | $ | - |  |  | 750
Granted |  |  | 628 |  |  | 10.30 |  |  |  |  |  | 90
Exercised or vested |  |  | (185) |  |  | 6.43 |  |  |  |  |  | (500)
Expired |  |  | - |  |  | - |  |  |  |  |  | -
Forfeited |  |  | (74) |  |  | 8.95 |  |  |  |  |  | -
Outstanding at December 31, 2013 |  |  | 3,081 |  | $ | 9.33 |  | $ | 12,320 |  |  | 340
Options exercisable at December 31, 2013 |  |  | 2,137 |  | $ | 8.50 |  | $ | 10,308 |  |  |
The following table summarizes the exercise price range, weighted average exercise price, and remaining contractual lives by significant ranges for options outstanding and exercisable as of December 31, 2013:
Exercise Price Range |  | Outstanding |  | Exercisable |  | Remaining Life In Years |  | Weighted Average Exercise Price
$4.00 - $10.39 |  |  | 2,125 |  |  | 1,652 |  |  | 3.7 |  | $ | 7.91
$10.40 - $14.71 |  |  | 956 |  |  | 485 |  |  | 7.7 |  | $ | 10.54
|  |  | 3,081 |  |  | 2,137 |  |  | 4.7 |  | $ | 8.50
The fair value of unvested restricted stock awards is determined based on the market price of our shares of common stock on the grant date. As of December 31, 2013, there were 944 unvested stock options and unrecognized compensation cost of $2,843 related to unvested stock options, as well as 340 unvested restricted stock awards and unrecognized compensation cost of $854 related to unvested restricted stock awards.

X
- Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
Name: | us-gaap_DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration