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SHAREHOLDERS' EQUITY
 6 Months Ended
Jun. 30, 2016
Stockholders' Equity Note [Abstract]  
SHAREHOLDERS' EQUITY
10. SHAREHOLDERS’ EQUITY

 

Stock Options

 

For the three months ended June 30, 2016 and 2015, total stock-based compensation expense related to stock options was $22 and $65, respectively. For the six months ended June 30, 2016 and 2015, total stock-based compensation expense related to stock options was $43 and $140, respectively. As of June 30, 2016, there was $99 of unrecognized expense related to unvested stock options, which will be recognized as stock-based compensation expense through January 2018. For the three months ended June 30, 2016, no stock options were granted, exercised, forfeited or expired. Presented below is information about stock options outstanding and exercisable as of June 30, 2016 and December 31, 2015:

 

    June 30, 2016     December 31, 2015  
    Shares     Price (1)     Shares     Price (1)  
                         
Stock options outstanding     390,525     $ 20.64       390,525     $ 20.64  
                                 
Stock options exercisable     371,248     $ 20.99       365,693     $ 21.17  

  

  (1) Represents the weighted average price.

 

The following table summarizes information for stock options outstanding and for stock options exercisable at June 30, 2016:

 

Options Outstanding     Options Exercisable  
Number     Exercise Price     Remaining     Number     Weighted  
of     Range     Weighted     Contractual     of     Average  
Shares     Low     High     Average     Term (years)     Shares     Exercise Price  
                                       
  56,786     $ 9.00     $ 9.00     $ 9.00       8.5       45,675     $ 9.00  
  49,504       12.48       12.48       12.48       7.0       48,004       12.48  
  98,396       13.92       17.10       15.01       3.3       98,396       15.01  
  185,839       22.62       30.24       29.35       1.6       179,174       29.60  
                                                     
  390,525     $ 9.00     $ 30.24     $ 20.64       3.7       371,249     $ 20.99  

 

As of June 30, 2016, an aggregate of approximately 351,000 shares are available for future grants under the Company’s stock option plans. Based upon the closing price for the Company’s common stock of $1.70 per share on June 30, 2016, there was no intrinsic value related to stock options outstanding as of June 30, 2016.

 

Restricted Stock Grants

 

In January 2015, the Board of Directors granted 56,786 shares of restricted stock under the 2012 Equity Plan to four officers of the Company. These shares originally vested annually over a period of three years. However, during 2015 vesting was accelerated for three of the four officers in connection with severance agreements for an aggregate of 40,119 shares. The remaining 16,667 shares vested for 5,556 shares in January 2016 and the remaining 11,111 shares will vest for 5,556 shares in January 2017 and 5,555 shares in January 2018. The fair market value of the 56,786 shares on the date of grant was approximately $511. For the three months ended June 30, 2016 and 2015, total stock-based compensation expense related to restricted stock grants was $13 and $42, respectively. For the six months ended June 30, 2016 and 2015, total stock-based compensation expense related to restricted stock grants was $25 and $84, respectively. As of June 30, 2016, there was $75 of unrecognized expense related to unvested restricted stock grants, which will be recognized as stock-based compensation expense through January 2018.

 

Employee Stock Ownership Plan

 

The Board of Directors of the Company adopted the U.S. Energy Corp. 1989 Employee Stock Ownership Plan ("ESOP") in 1989, for the benefit of all the Company’s employees. Employees become eligible to participate in the ESOP after one year of service which must consist of at least 1,000 hours worked. Employees become 20% vested after three years of service and increase their vesting by 20% each year thereafter until such time as they are fully vested after seven years of service.

 

An employee’s total compensation paid, which is subject to federal income tax (up to an annual limit of $265 for the year ended December 31, 2015) is the basis for computing how much of the total annual funding is contributed into each employee’s personal account. An employee’s compensation divided by the total eligible compensation paid to all plan participants is the percentage that each participant receives on an annual basis. All shares of the Company’s common stock contributed to the ESOP have been allocated to specific employees and are vested. Total shares held by the ESOP at June 30, 2016 and December 31, 2015 were 340,726 and 789,110, respectively.

 

For the three months ended June 30, 2015, total stock-based compensation expense related to the ESOP was $23. No expense related to the ESOP has been recorded for the three months ended June 30, 2016 since the Company’s Board of Directors has not determined if a discretionary contribution will be made for 2016. For the year ended December 31, 2015, the Company’s Board of Directors approved a mandatory contribution of $170 which is either payable in cash or may be settled through the issuance of common stock at the election of the Company. On July 7, 2016, the Board of Directors elected to issue 65,748 shares of the Company’s common stock with a fair value of $2.58 per share to settle this obligation. Accordingly, this liability is included in other long-term liabilities in the accompanying balance sheet as of June 30, 2016.