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STOCK BASED COMPENSATION | 3 Months Ended
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Mar. 31, 2014
STOCK BASED COMPENSATION |
STOCK BASED COMPENSATION | 7. STOCK BASED COMPENSATION Our stock based compensation programs consist of stock option, restricted stock unit and restricted stock grants made to employees and directors. The Company’s equity incentive plans include: the 2013 Omnibus Incentive Plan (the “2013 Plan”); the 2007 Restricted Stock Plan (the “2007 Plan”); the Amended and Restated 2004 Directors’ Stock Option and Restricted Stock Plan (the “2004 Directors’ Plan”); the 2004 Stock Incentive Plan (the “2004 Plan”); and the 1995 Stock Incentive Plan (the “1995 Plan”). Upon approval of the 2013 Plan by the Company’s stockholders on June 4, 2013, the Company’s authority to grant new awards under all plans other than the 2013 Plan was terminated. The 2013 Plan permits the grant of awards of stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards, and cash bonus awards. The initial number of shares available for grant under the 2013 Plan was 1,159,123 shares. In addition, the number of shares of common stock available for issuance under the 2013 Plan is increased by the number of shares subject to awards (made under the 2013 Plan or that were outstanding under the prior plans on June 4, 2013) that terminate by expiration, forfeiture, cancellation or otherwise without the issuance of such shares. As of March 31, 2014, 1,045,721 shares were available for future issuances under the 2013 Plan. Stock compensation expense for the period ended March 31, 2014 and 2013 was approximately $117,000 and $245,000, respectively, and was recorded to general and administrative expenses. The Company has not recognized a tax benefit from the stock compensation expense because the Company considers it is more likely than not that the related deferred tax assets, which have been reduced by a full valuation allowance, will not be realized. Stock Options Stock option awards are granted with an exercise price equal to the closing market price of the Company’s stock at the date of grant. Stock option awards granted to officers, employees, and directors generally vest ratably based on one to five years of continuous service and have a contractual term of ten years. The option-pricing model requires a number of assumptions, of which the most significant are expected stock price volatility, the expected pre-vesting forfeiture rate and the expected option term (the amount of time from the grant date until the options are exercised or expire). Expected volatility was calculated based upon actual historical stock price movements through the measurement date of the stock option grant. Expected pre-vesting forfeitures and option terms were estimated based on actual historical pre-vesting forfeitures. The terms of the options are determined by the Board of Directors upon grant; however, no options may be exercised after a period of ten years. During the period ended March 31, 2014, no stock options were granted. The following table summarizes stock options outstanding and changes during the period ended March 31, 2014:
|  | Outstanding Options |
|  | Number of Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value |
Balance, January 1, 2014 |  | 309,479 |  | $ | 19.75 |  |  |  |  |
Granted |  | — |  | — |  |  |  |  |
Exercised |  | — |  | — |  |  |  |  |
Canceled or forfeited |  | — |  | — |  |  |  |  |
Balance, March 31, 2014 |  | 309,479 |  | $ | 19.75 |  | 3.66 |  | $ | 1,650 |
Options exercisable, March 31, 2014 |  | 256,656 |  | $ | 23.04 |  | 2.57 |  | $ | 427 |
The following table summarizes both stock options outstanding and currently exercisable at March 31, 2014:
|  | Outstanding Options |  | Options Exercisable |
Stock Option Plan |  | Number of Options Outstanding |  | Weighted Average Remaining Contractual Life (in years) |  | Weighted Average Exercise Price |  | Number of Options Exercisable |  | Weighted Average Exercise Price |
1995 Stock Incentive Plan |  | 145,906 |  | 0.38 |  | $ | 13.46 |  | 145,906 |  | $ | 13.46 |
2004 Stock Incentive Plan |  | 83,575 |  | 7.25 |  | 13.85 |  | 42,834 |  | 24.42 |
2004 Directors’ Plan |  | 74,998 |  | 5.63 |  | 39.68 |  | 67,916 |  | 42.74 |
2013 Omnibus Incentive Plan |  | 5,000 |  | 9.75 |  | 2.99 |  | — |  | — |
|  | 309,479 |  | 3.66 |  | $ | 19.75 |  | 256,656 |  | $ | 23.04 |
Total estimated unrecognized compensation cost from unvested stock options as of March 31, 2014 was approximately $157,000, which is expected to be recognized over a weighted average period of approximately 2 years. Restricted Stock Units Time-based and performance-based restricted stock units (“RSUs”) are valued using the market value of the Company’s common stock on the date of grant. The final number of shares issued under performance-based RSUs is generally based on the Company’s prior year performance as determined by the Compensation Committee of the Board of Directors at each vesting date, and the valuation of such awards assumes full satisfaction of all performance criteria. The Company also issues RSUs to members of its Board of Directors, which vest over four years. The following table summarizes RSU activity during the period ended March 31, 2014:
|  | Number of Shares |  | Weighted-Average Grant Date Fair Value |
Balance, January 1, 2014 |  | 280,000 |  | $ | 3.31 |
Granted |  | — |  | $ | — |
Forfeited |  | — |  | $ | — |
Vested |  | (33,333 | ) | $ | 2.83 |
Balance, March 31, 2014 |  | 246,667 |  | $ | 3.37 |
Total estimated unrecognized compensation cost from unvested RSUs as of March 31, 2014 was approximately $549,000, which is expected to be recognized over a weighted average period of approximately 2 years. Restricted Stock Time-based and performance-based restricted stock grants are valued using the fair market value of the stock on the date of grant. Vesting based on performance criteria is generally based on the Company’s prior year performance as determined by the Compensation Committee of the Board of Directors at each vesting date, and the valuation of such grants assumes full satisfaction of all performance criteria. Employee participants who receive restricted stock grants have all of the rights of a stockholder, including the right to vote the shares of restricted stock that are the subject of the grant and the right to receive any regular cash dividends paid out of current earnings. A summary of the status of non-vested shares of restricted stock is presented below:
|  | Number of Shares |  | Weighted- Average Grant Date Fair Value |
Balance, January 1, 2014 |  | 54,151 |  | $ | 5.49 |
Granted |  | — |  | $ | — |
Forfeited |  | (1,851 | ) | $ | 2.73 |
Vested |  | (11,482 | ) | $ | 2.73 |
Balance, March 31, 2014 |  | 40,818 |  | $ | 6.39 |
The total estimated unrecognized compensation cost from the unvested restricted grants at March 31, 2014 was approximately $166,000, which is expected to be recognized over the weighted average vesting period of 1.9 years.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + 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 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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