Stock-Based Compensation Plans

The Company has grants outstanding under three equity compensation plans, with two of the plans available for future grants of equity compensation awards to employees, consultants and directors. All of the equity plans were approved by shareholders. The 2007 Long-Term Incentive Compensation Plan (the 2007 Plan) and the 2007 Directors’ Incentive Plan (the "Directors’ Plan") superseded the 1999 Stock Option Plan. The 2007 Plan and the Directors’ Plan provide for the issuance of stock options, stock appreciation rights and restricted stock. Vesting is determined on a grant-by-grant basis in accordance with the terms of the plans and the related grant agreements. The Company has reserved 2.4 million shares of common stock for issuance under the 2007 Plan and 250,000 shares for issuance under the Directors’ Plan.

The exercise price of stock options is generally 100% of the fair market value of the underlying common stock on the grant date. The exercise price of incentive stock options granted to a shareholder who owns more than 10% of the total combined voting power of all classes of stock must be at least 110% of the fair market value of the underlying common stock on the grant date. The maximum contractual term of stock options is ten years from the date of grant, except for incentive stock options granted to 10% shareholders, which are five years.

During 2011, the Company began issuing shares of restricted stock with no exercise price to employees and directors. Restricted stock issued to employees generally cliff-vests on the fourth anniversary of the date of grant. Restricted stock issued to directors vests on the one year anniversary of the date of grant.

Stock compensation expense is presented as a component of general and administrative expense in the consolidated statements of operations. Stock compensation expense recorded as a component of equity consisted of the following for the years ended December 31:



	2015		2014		2013

Share-based compensation - employees	$	456,749	$	660,963	$	614,818
Share-based compensation - nonemployees	165,754		99,931		56,116
Total share-based compensation	$	622,503	$	760,894	$	670,934

At December 31, 2015, there was approximately $1.8 million of unrecognized compensation cost related to share-based payments, which is expected to be recognized over a weighted-average period of 2.6 years. This amount relates primarily to unrecognized compensation cost for employees.

Stock Options

Stock option activity for 2015 and 2014 was as follows:



	Number of shares		Weighted-average exercise price per share		Weighted- average remaining contractual term (years)	Aggregate intrinsic value

Outstanding, December 31, 2013	356,496		$	6.96	1.0	$	360
Options granted	—		—
Options exercised	—		—
Options forfeited or expired	(198,140	)	6.46
Outstanding, December 31, 2014	158,356		7.62		0.4	2,320
Options granted	—		—
Options exercised	(5,652	)	5.75
Options forfeited or expired	(140,404	)	7.41
Outstanding, December 31, 2015	12,300		10.89		1.6	$	—
Exercisable at December 31, 2015	12,300		$	10.89	1.6	$	—

The Company did not grant any stock options during 2015, 2014 and 2013, and no options were exercised during 2014 . Information related to the stock option plans during 2015, 2014 and 2013 was as follows:



	2015		2014		2013

Intrinsic value of options exercised	$	3,875	$	—	$	212,444
Weighted-average fair value of options exercised	$	3.26	$	—	$	0.12

Restricted Stock Awards

As previously noted, the Company began issuing restricted stock to employees and directors in 2011 under the provisions of the 2007 Plan and the Directors’ Plan. Restricted stock issued to employees generally cliff-vests on the fourth anniversary of the date of grant. Restricted stock issued to directors vests on the one year anniversary of the date of grant. Restricted stock activity was as follows:



	Number of shares		Weighted- average grant-date fair value

Nonvested, December 31, 2013	520,584		$	5.05
Shares granted	219,734		4.68
Shares vested	(11,300	)	4.78
Shares forfeited	(36,181	)	5.41
Nonvested, December 31, 2014	692,837		4.92
Shares granted	225,661		6.72
Shares vested	(81,270	)	5.22
Shares forfeited	(97,179	)	5.49
Nonvested, December 31, 2015	740,049		5.36

The fair value of restricted stock granted was based on the closing market price of the Company’s common stock on the date of grant. The restricted stock grants are included in the diluted weighted shares outstanding computation until they cliff-vest. Once vested they are included in the basic weighted shares outstanding computation.