(10)	Stock and Stock-based Compensation

Common Stock

During the year ended December 31, 2017, the Company issued a total of 351,024 shares of common stock. The Company issued 246,803 shares of common stock as payment of accrued preferred dividends, 97,070 shares upon the vesting of restricted stock units and 7,151 shares in connection with the Company’s Employee Stock Purchase Plan.

During the year ended December 31, 2016, the Company issued a total of 113,579 shares of common stock, which includes 105,437 shares issued upon vesting of restricted stock units and 8,142 shares issued in connection with the Company’s Employee Stock Purchase Plan.

Employee Stock Purchase Plan

The Company issued 7,151 and 8,142 shares of Company stock during 2017 and 2016, respectively, in connection with an Employee Stock Purchase Plan (“ESPP”) that commenced in April 2008.

Restricted Stock Units

As amended in May 2014, the stockholder approved shares available under the plan is 1,700,000. The number of RSUs awarded is generally subject to the substantial achievement of budgeted performance and other metrics in the year granted. The RSUs do not have voting rights of the common stock, and the shares of common stock underlying the RSUs are not considered issued and outstanding until actually vested and issued. In general, the awards convert to common stock on a one to one basis in 25% increments over four years from the grant date subject to a continuing employment obligation.

The following table summarizes the activity for unvested restricted stock units for the years ended December 31, 2017 and 2016:

	Units		Weighted Average Fair Value Per RSU
Unvested restricted stock units at December 31, 2015		315,847	$	3.99
Awarded		31,327	$	2.81
Vested		(105,443)	$	4.66
Forfeited		(23,319)	$	5.12
Unvested restricted stock units at December 31, 2016		218,412	$	4.28
Awarded		56,759	$	1.48
Vested		(112,340)	$	3.99
Forfeited		(2,289)	$	4.41
Unvested restricted stock units at December 31, 2017		165,120	$	3.40

Compensation expense of approximately $0.30 million and $0.49 million was recorded in the years ended December 31, 2017 and 2016, respectively, to reflect the fair value of the original RSU’s granted or anticipated to be granted less forfeitures, amortized over the portion of the vesting period occurring during the period. The fair value of the RSUs was based on the closing price of our common stock as reported on the NASDAQ Stock Market (“NASDAQ”) on the grant date. Based upon the fair value on the grant date of the number of shares awarded or expected to be awarded, it is anticipated that approximately $0.56 million of additional compensation cost will be recognized in future periods through 2020. The weighted average period over which this additional compensation cost will be expensed is 3 years.

In December 2016, the Board of Directors approved modification to the requisite service period to accelerate vesting for 75% of the RSU granted to employees for the year ended December 31, 2016.

During February 2017, the Board of Directors approved the grants of approximately 605,000 RSUs in conjunction with the Plan, of which, approximately 541,000 units are subject to 2018 fiscal performance measures.

Board of Directors Deferred Compensation

Directors who are not employees of the Company and who do not have a compensatory agreement providing for service as a director of the Company receive a retainer fee payable quarterly. Eligible directors may elect to defer 50% to 100% of their retainer fee, which may be used to acquire common stock of the Company at the fair market value on the date the retainer fee would otherwise be paid, acquire stock units equivalent to the fair market value of the Company’s common stock on the date the retainer fee would otherwise be paid, or be paid in cash. During the years ended December 31, 2017 and 2016, directors of the Company elected to defer retainer fees to acquire approximately 72,000 and 73,750 respectively, stock units. Compensation expense of approximately $0.08 million and $0.07 million was recorded in the years ended December 31, 2017 and 2016 respectively, which is included in general and administrative expenses in the consolidated statements of operations.