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Share-Based Compensation
 3 Months Ended
Mar. 31, 2013
Share-Based Compensation [Abstract]  
Share-Based Compensation

Note 5: Share-Based Compensation

The Company maintains the Patriot National Bancorp, Inc. 2012 Stock Plan to provide an incentive to directors and employees of the Company by the grant of options, restricted stock awards or phantom stock units. The Plan provides for the issuance of up to 3,000,000 shares of the Company’s common stock subject to certain Plan limitations. 2,675,113 shares of stock remain available for issuance under the Plan as of March 31, 2013. The vesting of restricted stock awards and options may be accelerated in accordance with terms of the plan. The Compensation Committee shall make terms and conditions applicable to the vesting of restricted stock awards and stock options. Restricted stock grants are available only to directors and vest in quarterly installments over a four year period from the date of grant. The Compensation Committee accelerated the vesting of the initial grant of restricted stock in 2012, whereby the first year of the tranche vested immediately. Stock options were granted at an exercise price equal to $2.20 based on a price determined by the Compensation Committee and all have an expiration period of 10 years. The fair value of stock options granted on January 24, 2012, was estimated utilizing the Black-Scholes option pricing model using the following assumptions: an expected life of 6.28 years utilizing the simplified method, risk-free rate of return of 1.28%, volatility of 61.29% and no dividend yield. The Company is expensing the grant date fair value of all share-based compensation over the requisite vesting periods on a straight-line basis.

 

During the three months ended March 31, 2013 and March 31, 2012, the Company recorded $7,651 and $79,631 of total stock-based compensation, respectively. During the quarter ended March 31, 2013, there were no awards granted under the 2012 Stock Plan.

The following table is a summary of the Company’s non-vested stock options as of March 31, 2013, and changes therein during the period then ended:

 

                                 
    Number of
Stock Options		     Weighted
Average Grant
Date Fair Value		     Weighted
Average
Exercise
Price		     Weighted
Average
Contractual
Life (years)		  

Outstanding—December 31, 2012

     850,000     $ 0.90     $ 2.20       10  

Granted

     —         —         —         —    

Exercised

     —         —         —         —    

Forfeited

     (642,500 )      0.90       2.20       10  
   

 

 

                          

Outstanding—March 31, 2013

     207,500     $ 0.90     $ 2.20       10  
   

 

 

                          

Exercisable—March 31, 2013

     207,500     $ —       $ —         —    
   

 

 

                          

There is no expected future stock option expense related to the non-vested options outstanding as of March 31, 2013. See discussion on “Management Changes” on page 55.

The following is a summary of the status of the Company’s restricted shares as of March 31, 2013, and changes therein during the period then ended.

 

                 
    Number of
Shares
Awarded		     Weighted
Average Grant
Date  Fair Value		  

Non-vested at December 31, 2012

     44,566     $ 1.73  

Vested

     (4,435 )      1.65  
   

 

 

          

Non-vested at March 31, 2013

     40,131     $ 1.73  
   

 

 

          

Expected future stock award expense related to the non-vested restricted awards as of March 31, 2013, is $69,226 over an average period of 2.37 years.