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Employee Stock Compensation Plans
6 Months Ended
Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Employee Stock Compensation Plans

9. Employee Stock Compensation Plans

 

Solitario’s outstanding options on the date of grant have a five year term, and vest 25% on date of grant and 25% on each of the next three anniversary dates. Solitario recognizes stock option compensation expense on the date of grant for 25% of the grant date fair value, and subsequently, based upon a straight line amortization of the unvested grant date fair value of each of its outstanding options. During the three and six months ended June 30, 2016, Solitario recorded $29,000 and $31,000, respectively, of stock option expense for the amortization of grant date fair value with a credit to additional paid-in-capital. During the three and six months ended June 30, 2015, Solitario recorded $157,000 and $313,000, respectively, of stock option expense for the amortization of grant date fair value with a credit to additional paid-in-capital.

 

The 2006 Plan

On June 27, 2006 Solitario’s shareholders approved the 2006 Stock Option Incentive Plan (the “2006 Plan”). Under the terms of the 2006 Plan, prior to June 26, 2016, an aggregate of 2,800,000 shares were reserved under the 2006 Plan for the award of options to directors, officers and employees with exercise prices equal to the market price of Solitario’s common stock at the date of grant.

 

During the three and six months ended June 30, 2016, Solitario granted options to acquire 350,000 shares of common stock under the 2006 Plan. The options have a five-year term, with an exercise price Cdn$0.72 per share, the closing price of a share of Solitario common stock as quoted on the Toronto Stock Exchange (the “TSX”) on the date of grant. The options vested 25% on the date of grant and thereafter vest 25% on each of the next three anniversary dates of the date of grant, and had a grant date fair value based upon a Black-Scholes model with a 63% expected volatility, and 1% risk-free interest rate. No options were granted during the three and six months ended June 30, 2015. No options were exercised during the three and six months ended June 30, 2016 or 2015 under the 2006 Plan.

 

On June 26, 2016, in accordance with the terms of the 2006 Plan, the ability to grant any additional options under the 2006 Plan terminated and no additional options will be granted under the 2006 Plan.

 

The 2013 Plan

On June 18, 2013 Solitario’s shareholders approved the 2013 Solitario Exploration & Royalty Corp. Omnibus Stock and Incentive Plan (the “2013 Plan”). Under the terms of the 2013 Plan, the Board of Directors may grant awards for up to 1,750,000 shares to directors, officers, employees and consultants. Such awards may take the form of stock options, stock appreciation rights, restricted stock, and restricted stock units. The terms and conditions of the awards are pursuant to the 2013 Plan and are granted by the Board of Directors or a committee appointed by the Board of Directors.

 

There were no stock grants or awards or exercises of options or awards under the 2013 Plan during the three and six months ended June 30, 2016 and 2015.