9.    Stock-based Compensation

Stock Option Plans

In May of 2008, the Company adopted the 2008 Long-term Incentive Plan (“2008 Plan”) which provides for the grant of stock options, stock appreciation rights and restricted stock to certain designated employees of the Company, Non-Employee directors of the Company and certain other persons performing significant services for the Company as designated by the Compensation Committee of the Board of Directors. At December 31, 2014, the number of common shares reserved for issuance under the 2008 plan was 1,250,000. Options granted under the plan vest either (i) over a 48-month period at the rate of 25% each year until fully vested or (ii) over a vesting period determined by the Board of Directors. As of December 31, 2014, there were 558,859 shares available for future grant under the 2008 plan.

In April of 2015, the Company adopted the 2015 Long-term Incentive Plan (“2015 Plan”) which provides for the grant of stock options, stock appreciation rights and restricted stock to certain designated employees of the Company, Non-Employee directors of the Company and certain other persons performing significant services for the Company as designated by the Compensation Committee of the Board of Directors. At December 31, 2015, the number of common shares and restricted stock reserved for issuance under the 2015 plan was 1,000,000 and 200,000, respectively. Options granted under the plan vest either (i) over a 48-month period at the rate of 25% each year until fully vested or (ii) over a 48-month period at the rate pf 6.25% each quarter until fully vested or (ii) over a vesting period determined by the Board of Directors. As of December 31, 2015, there were 745,375 shares available for future grant under the 2015 plan.

The Company’s stock options have a maximum term of 10 years from the date of grant. Options granted prior to 2006 have a 10-year term. Since 2006, the Company has been granting stock options with a seven-year term.

A summary of the status of the Company’s stock option plans as of December 31, 2015 is as follows:

 

		Number of Options				Weighted- Average Exercise Price				Weighted- Average Remaining Contractual Life				Aggregate Intrinsic Value (in thousands)
Outstanding, December 31, 2014			445,684				8.28				5.11 years				45,625
Granted			630,000				6.80
Exercised			(15,625	)			5.28								21,436
Forfeited			(40,375	)			11.18
Outstanding, December 31, 2015			1,019,684			$	7.30				5.46 years			$	3,607,077
Vested			319,429				8.30				4.33 years				1,060,969
Unvested			700,255				6.84								2,546,108
Vested or expected to vest, December 31, 2015			1,019,684			$	7.30				5.46 years			$	3,607,077
Exercisable, December 31, 2015			319,429			$	8.30				4.33 years			$	1,060,969

 

The intrinsic value of options exercised in 2015, 2014, and 2013, respectively, were $21,436, $10,161, and $4,380.

Restricted stock grants consist of grants of the Company’s common stock that may vest in the future. The Board has set a one, two, or four year vesting period for most of the issued restricted shares except annual grants to independent Directors which vest at the next annual meeting of stockholders. The fair value of each restricted share grant is equal to the market price of the Company’s common stock at the date of grant. Expense relating to restricted shares is at the closing price amortized ratably over the vesting period. As of December 31, 2015, there were 225,720 restricted shares available for future grant under the 2015 plan.

Included in the table above are 243,000 options granted to non-employees during 2015 with a weighted average exercise price of $6.10.

A summary of the Company’s restricted stock activity and related information for the year ended December 31, 2015 is as follows:

 

		Shares				Weighted Average Grant Date Fair Value
Unvested, December 31, 2014			22,830			$	6.47
Granted			13,106			$	11.71
Vested			(23,291	)		$	6.49
Forfeited			—			$	—
Unvested, December 31, 2015			12,645			$	11.86

As of December 31, 2015, there was $0.1 million of total unrecognized compensation costs related to non-vested restricted share-based compensation. The remaining cost is expected to be recognized over a weighted average period of 0.43 years. The total fair value of shares vested during the year ended December 31, 2015 was $0.2 million.