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Long-Term Incentive Compensation Plan (the 2007 Plan) and the 2007 Directors’ Incentive Plan (the "Directors’ Plan") superseded the 1999 Stock Option Plan.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 maximum contractual term of stock options is ten years from the date of grant, except for incentive stock options granted to 10% shareholders, which is 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 consisted of the following for the years ended December 31:



	2017		2016		2015

Share-based compensation - employees	$	1,032,094	$	833,027	$	456,749
Share-based compensation - nonemployees	82,969		19,075		165,754
Share-based compensation - foundation contribution	$	372,500	$	—	$	—
Total share-based compensation	$	1,487,563	$	852,102	$	622,503

At December 31, 2017, there was approximately $2.1 million of unrecognized compensation cost related to share-based payments, which is expected to be recognized over a weighted-average period of 2.5 years. This amount relates primarily to unrecognized compensation cost for employee restricted stock awards.

Stock Options

Stock option activity for 2017 and 2016 was as follows:



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

Outstanding, December 31, 2015	12,300		$	10.89	1.6	$	2,320
Options granted	—		—
Options exercised	—		—
Options forfeited or expired	(6,500	)	9.00
Outstanding, December 31, 2016	5,800		13.00		1.9	—
Options granted	—		—
Options exercised	—		—
Options forfeited or expired	—		—
Outstanding, December 31, 2017	5,800		13.00		0.9	$	—
Exercisable at December 31, 2017	5,800		$	13.00	0.9	$	—

The Company did not grant any stock options during 2017, 2016 and 2015, and no options were exercised during 2017 and 2016. Information related to the stock option plans during 2017, 2016 and 2015 was as follows:



	2017		2016		2015

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

Restricted Stock Awards

Restricted stock activity was as follows:



	Number of shares		Weighted- average grant-date fair value

Nonvested, December 31, 2015	740,049		$	5.36
Shares granted	228,425		4.36
Shares vested	(223,987	)	5.28
Shares forfeited	(41,192	)	4.23
Nonvested, December 31, 2016	703,295		5.13
Shares granted	238,550		6.48
Shares vested	(146,275	)	4.74
Shares forfeited	(27,725	)	5.34
Nonvested, December 31, 2017	767,845		5.61

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.