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Stock-Based Compensation Plan | 12 Months Ended
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Dec. 31, 2014
Stock-Based Compensation Plan [Abstract] |
Stock-Based Compensation Plan | NOTE 14. STOCK-BASED COMPENSATION PLAN Under the Company’s 2005 Stock Incentive Plan (the “2005 Plan”), the Company’s Board of Directors (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, 2014, the number of shares authorized and reserved for issuance under the 2005 Plan is 6,405, 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, 2014, the Company issued 529 stock options, under the Company’s 2005 Plan, to directors and employees of the Company. Of the 5 29 options issued, 30 will vest in four equal consecutive quarterly tranches from the date of grant. 300 will vest in four equal consecutive annual tranches starting December 31, 2015. The remaining 199 options will vest in three installments as follows: 80 shall vest on December 31, 2016, and the remaining shares shall vest equally on December 31, 2017 and December 31, 2018. 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:
|  | 2014 |  | 2013 |  | 2012
Number of options |  | 529 |  | 143 |  | 485 |  | 270 |  | 500
Option vesting period |  | 1-5 Years |  | 1-5 Years |  | Immediate |  | 1-5 Years |  | 3-6 Years
Grant price |  | $7.36 - $14.02 |  | $8.02 - $13.38 |  | $10.40 - $14.71 |  | $7.64 - $9.89 |  | $13.00 - $16.00
Dividend yield |  | 0.0% |  | 0.0% |  | 0.0% |  | 0.0% |  | 0.0%
Expected volatility (a) |  | 45.7% - 55.1% |  | 52.8% - 55.2% |  | 51.6% - 53.9% |  | 53.3% - 59.2% |  | 50.3% - 58.6%
Risk-free interest rate |  | 1.63% - 2.31% |  | 1.04% - 2.45% |  | 1.36% - 1.62% |  | .71% - 1.44% |  | .39% - 1.04%
Expected life (years) |  | 5.31 - 6.95 (b) |  | 5.31 - 7.08 (b) |  | 5.00 (c) |  | 5.31 - 7.08 (b) |  | 3.25 - 6.25 (b)
Discount for post-vesting restrictions (d) |  | 0.0% |  | 0.0% |  | 11.5% - 35.0% |  | 0.0% |  | 0.0%
Weighted average fair value |  | $3.89 - $7.82 |  | $4.23 - $7.53 |  | $1.59 - $5.25 |  | $4.40 - $5.34 |  | $2.64 - $3.94
| (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, 2014, 2013, and 2012 was $2,747, $2,303, and $3,011, respectively, which will be amortized over the vesting period of the options. Restricted Stock Awards: On Aug ust 11, 2014, the Company issued and granted to an employee a restricted stock award of 300 restricted shares under the 2005 Plan, of which (i) 50 restricted shares vested and become nonforteitable on August 25, 2014; (ii) 205 restricted shares will vest and become nonforteitable as follows: (A) 45 restricted shares will vest if, on or before June 30, 2017, the Fair Market Value (as defined in the Plan) of the Company’s common stock shall have equaled or exceeded $15.00 per share for five consecutive trading days; (B) 80 restricted shares will vest if, on or before December 31, 2019, the Fair Market Value of the Company’s common stock shall have equaled or exceeded $20.00 per share for five consecutive trading days; (C) 80 restricted shares will vest if, on or before December 31, 2019, the Fair Market Value of the Company’s common stock shall have equaled or exceeded $22.00 per share for five consecutive trading days; and (iii) 15 restricted shares will vest and become nonforfeitable on each of December 31, 2015, December 31, 2016 and December 31, 2017. All vested restricted shares will be subject to a lock-up provision restricting sales, dispositions, pledges and transfers of such shares through December 31, 2016. For computing the fair value of the 205 restricted shares with a market condition, 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 assumptions below. The restricted stock awards of 95 that vest over time were valued at $7.74 per share, which includes a discount for the lock-up provision. Market Condition Restricted Shares Granted on August 11, 2014
Number issued |  | 45 |  | 80 |  | 80
Vesting period |  | $15.00 stock price target |  | $20.00 stock price target |  | $22.00 stock price target
Grant price |  | $8.87 |  | $8.87 |  | $8.87
Dividend yield |  | 0.0% |  | 0.0% |  | 0.0%
Expected volatility |  | 38.2% |  | 38.2% |  | 38.2%
Risk-free interest rate |  | 0.93% |  | 1.62% |  | 1.62%
Expected term (years) |  | 1.32 |  | 2.64 |  | 2.89
Weighted average fair value |  | $4.63 |  | $4.72 |  | $4.22
Using these assumptions, the fair value of the market condition restricted stock awards granted on August 11, 2014 was approximately $923, which is being amortized over the expected life of the awards. 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,
|  | 2014 |  | 2013 |  | 2012
Restricted stock awards |  | $ | 589 |  | $ | 81 |  | $ | 739
Stock options |  |  | 1,264 |  |  | 2,904 |  |  | 1,027
Stock awards |  |  | - |  |  | 25 |  |  | -
Total |  | $ | 1,853 |  | $ | 3,010 |  | $ | 1,766
For the years ended December 31, 2014, 2013, and 2012, the majority of stock-based compensation costs were classified as selling, general and administrative expense. A summary of changes in outstanding options and restricted stock awards during the year ended December 31, 2014 is as follows:
|  | Options |  | Weighted Average Exercise Price |  | Aggregate Intrinsic Value |  | Restricted Stock Awards
Outstanding at December 31, 2013 |  |  | 3,081 |  | $ | 9.33 |  | $ | 12,320 |  |  | 340
Granted |  |  | 529 |  |  | 9.79 |  |  |  |  |  | 300
Exercised or vested |  |  | (225) |  |  | 6.92 |  |  |  |  |  | (50)
Expired |  |  | (93) |  |  | 9.89 |  |  |  |  |  | -
Forfeited |  |  | (172) |  |  | 8.55 |  |  |  |  |  | (30)
Outstanding at December 31, 2014 |  |  | 3,120 |  | $ | 9.58 |  | $ | - |  |  | 560
Options exercisable at December 31, 2014 |  |  | 2,028 |  | $ | 8.56 |  | $ | 385 |  |  |
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, 2014:
Exercise Price Range |  | Outstanding |  | Exercisable |  | Remaining Life In Years |  | Weighted Average Exercise Price
$4.00 - $10.03 |  |  | 2,055 |  |  | 1,563 |  |  | 5.9 |  | $ | 7.98
$10.04 - $16.00 |  |  | 1,065 |  |  | 465 |  |  | 8.8 |  | $ | 10.51
|  |  | 3,120 |  |  | 2,028 |  |  | 6.9 |  | $ | 8.56
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 or using the Monte-Carlo pricing model. As of December 31, 2014, there were 1,092 unvested stock options and unrecognized compensation cost of $3,384 related to unvested stock options, as well as 560 unvested restricted stock awards and unrecognized compensation cost of $1,112 related to unvested restricted stock awards.

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- 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
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