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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2015
Stock-Based Compensation |
Stock-Based Compensation | 8. Stock-Based Compensation At December 31, 2015, the Company had two stock-based compensation plans: (i) the Amended and Restated Dawson Geophysical Company 2006 Stock and Performance Incentive Plan (the "Legacy Dawson Plan"), which originated from Legacy Dawson and (ii) the Amended and Restated Dawson Geophysical Company 2006 Stock Awards Plan (formerly known as the TGC Industries, Inc. 2006 Stock Awards Plan) (the "Legacy TGC Plan"), which originated from Legacy TGC. As a result of the Merger, the Company administers both the Legacy Dawson Plan and the Legacy TGC Plan. The awards outstanding and available under these plans and their associated accounting treatment are discussed below. In 2006, Legacy Dawson adopted the Legacy Dawson Plan. The Legacy Dawson Plan, which was amended and restated in connection with the Merger, provides for the issuance of up to 827,647 shares of authorized Company common stock (which represents the adjusted number of shares subject to outstanding awards and available for issuance under new awards immediately following the Merger, and the unadjusted number of shares originally reserved under the Legacy Dawson Plan was 750,000). At the date of the Merger, 466,136 shares were available for issuance (immediately following such Merger) pursuant to new grants under the Legacy Dawson Plan to officers, directors, employees and consultants of the Company (who were not otherwise officers, directors, employees or consultants of Legacy TGC immediately prior to the Merger). The Legacy Dawson Plan provides for the issuance of stock options, common stock grants, restricted stock grants, restricted stock units and other forms of awards. Stock option grant prices awarded under the Legacy Dawson Plan may not be less than the fair market value of the common stock subject to such option on the grant date, and the term of stock options shall extend no more than ten years after the grant date. The Legacy Dawson Plan terminates November 28, 2016. In 2006, the Company adopted the Legacy TGC Plan. The Legacy TGC Plan, which was amended and restated in connection with the Merger, provides for the issuance of up to 1,000,000 shares of authorized Company common stock. At the date of the Merger, 412,254 shares were available for issuance pursuant to new grants under the Legacy TGC Plan to officers, directors and employees of the Company. The Legacy TGC Plan provides for the issuance of stock options, common stock grants and restricted stock grants. Stock option grant prices awarded under the Legacy TGC Plan may not be less than the fair market value of the common stock subject to such option on the grant date, and the term of stock options shall extend no more than ten years after the grant date. The Legacy TGC Plan terminates March 29, 2016. At the time of the Merger, Legacy TGC had no restricted stock grants outstanding. Impact of Stock-based Compensation: The following table summarizes stock-based compensation expense, which is included in operating or general and administrative expense as appropriate in the consolidated statements of operations, for the year ended December 31, 2015, the three months ended December 31, 2014 and years ended September 30, 2014 and 2013:
|  | Year Ended December 31, |  | Three Months Ended December 31, |  | Year Ended September 30, |
|  | 2015 |  | 2014 |  | 2014 |  | 2013 |
Stock Options |  | $ | — |  | $ | — |  | $ | — |  | $ | 62,000 |
Restricted Stock Awards |  |  | 363,000 |  |  | 213,000 |  |  | 821,000 |  |  | 1,307,000 |
Restricted Stock Units |  |  | 526,000 |  |  | 74,000 |  |  | 233,000 |  |  | 25,000 |
Common Stock Awards |  |  | 267,000 |  |  | 165,000 |  |  | 171,000 |  |  | 403,000 |
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Total Compensation Expense |  | $ | 1,156,000 |  | $ | 452,000 |  | $ | 1,225,000 |  | $ | 1,797,000 |
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Stock Options: Legacy Dawson estimated the fair value of each stock option on the date of grant using the Black-Scholes option pricing model. Legacy TGC estimated the fair value of each stock option on the date of grant using the Binomial Lattice Model. No stock options have been awarded during the three months ended December 31, 2014 and the year ended December 31, 2015. Actual value realized with stock options, if any, is dependent on the future performance of the Company's common stock and overall stock market conditions. A summary of the Company's employee stock options as of December 31, 2015 as well as activity during the three months ended December 31, 2014, the year ended September 30, 2014 and the year ended December 31, 2015 is presented below.
|  | Number of Optioned Shares(1) |  | Weighted Average Exercise Price(1) |  | Weighted Average Remaining Contractual Term in Years |
Balance as of September 30, 2014 and December 31, 2014 |  |  | 160,434 |  | $ | 10.74 |  |  |  |
Forfeited |  |  | (1,760 | ) | $ | 10.74 |  |  |  |
Oustanding and vested Legacy TGC options |  |  | 279,756 |  | $ | 14.25 |  |  |  |
Options cancelled |  |  | (10,000 | ) | $ | 11.79 |  |  |  |
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Balance as of December 31, 2015 |  |  | 428,430 |  | $ | 13.01 |  |  | 2.93 |
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Exercisable as of December 31, 2015 |  |  | 428,430 |  | $ | 13.01 |  |  | 2.93 |
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| (1) |  | Balance of optioned shares and weighted average exercise price converted for the Merger that occurred February 11, 2015.
Stock options issued under the Legacy TGC and Legacy Dawson plans are incentive stock options. No tax deduction is recorded when options are awarded. If an exercise and sale of vested options results in a disqualifying disposition, a tax deduction for the Company occurs. Outstanding options at December 31, 2015 expire from November 2016 to July 2019. There was no unrecognized compensation costs related to stock option awards as of December 31, 2015. There were no options granted or vested and there were no excess tax benefits from disqualifying dispositions during the year ended December 31, 2015, the three months ended December 31, 2014 and the years ended September 30, 2014 and 2013. No options were exercised during the year ended December 31, 2015 or the three months ended December 31, 2014 or the year ended September 30, 2013. The total intrinsic value of options exercised during the year ended September 30, 2014 was $13,000, respectively. No cash was received from option exercises under all share-based payment arrangements during the year ended December 31, 2015 and the three months ended December 31, 2014. Cash received from option exercises under all share-based payment arrangements during the years ended September 30, 2014 and 2013 was $32,000 and $608,000, respectively. Restricted Stock Awards: There were no restricted stock grants in year ended December 31, 2015, three months ended December 31, 2014, or years ended September 30, 2014 and 2013. At September 30, 2014 and December 31, 2014, 182,160 restricted share awards with a weighted average grant date fair value (based on the market price of the Company's stock on the date of grant) of $13.38 per share were outstanding. As of December 31, 2015, all restricted stock has vested and no awards were outstanding. Restricted Stock Units: The Company granted 10,000, 94,898, 38,555 and 3,520 restricted stock units in the year ended December 31, 2015, the three months ended December 31, 2014 and the years ended September 30, 2014 and 2013, respectively, with a weighted average grant date fair value of $5.76, $6.79, $18.02 and $15.42, respectively. The fair value of restricted stock units equals the market price of the Company's stock on the grant date. A summary of the Company's nonvested restricted stock unit awards as of December 31, 2015 as well as activity during the three months ended December 31, 2014 and the year ended December 31, 2015 is presented below.
|  | Number of Restricted Share Units(1) |  | Weighted Average Grant Date Fair Value(1) |
Balance as of September 30, 2014 |  |  | 38,555 |  | $ | 18.02 |
Grants |  |  | 94,898 |  |  | 6.79 |
Balance as of December 31, 2014 |  |  | 133,453 |  | $ | 10.03 |
Grants |  |  | 10,000 |  |  | 5.76 |
Vested |  |  | (14,206 | ) |  | 17.78 |
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Balance as of December 31, 2015 |  |  | 129,247 |  | $ | 8.85 |
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| (1) |  | Balance of restricted share units and weighted average grant date fair value price converted for merger that occurred February 11, 2015.
As of December 31, 2015, there was approximately $587,000 of unrecognized compensation cost related to nonvested restricted stock units. This cost is expected to be recognized over a weighted average period of 1.78 years. Common Stock Awards: The Company granted common shares with immediate vesting to outside directors and employees in year ended December 31, 2015, the three months ended December 31, 2014 and the years ended September 30, 2014 and 2013 as follows:
|  | Number of Shares Granted |  | Weighted Average Grant Date Fair Value |
Year Ended December 31, 2015 |  |  | 58,937 |  | $ | 4.53 |
Three Months Ended December 31, 2014 |  |  | 21,730 |  | $ | 7.59 |
Year Ended September 30, 2014 |  |  | 9,706 |  | $ | 17.61 |
Year Ended September 30, 2013 |  |  | 25,491 |  | $ | 15.81 |

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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 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 2: 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=51659978&loc=d3e25284-112666 Reference 3: 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 4: 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 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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