Annual report pursuant to Section 13 and 15(d)

Stockholders' Equity and Stock Based Compensation

v3.6.0.2
Stockholders' Equity and Stock Based Compensation
12 Months Ended
Dec. 31, 2016
Stockholders' Equity and Stock Based Compensation  
Stockholders' Equity and Stock Based Compensation

6.  Stockholders’ Equity and Stock Based Compensation

 

On April 21, 1995, the Board of Directors adopted the Company’s 1995 Employee Stock Plan (“1995 Plan”).  The 1995 Plan, as amended on May 7, 1998, provides for the grant of options to purchase up to 1,137,500 shares of the Company’s Common Stock to officers, directors, employees and consultants of the Company.  The 1995 Plan requires that each option shall expire on the date specified by the Compensation Committee, but not more than ten years from its date of grant in the case of Incentive Stock Options (“ISO’s”) and Non-Qualified Options.  Options granted under the plan are exercisable at an exercise price equal to but not less than the fair market value of the Common Stock on the grant date. ISO’s shall either be fully exercisable on the date of grant or shall become exercisable thereafter in such installments as the committee may specify.

 

On April 21, 1995, the Board of Directors adopted the Company’s 1995 Non-Employee Director Plan (“1995 Director Plan”).  The 1995 Director Plan, as amended on May 7, 1998, provides for the grant of options to purchase up to 187,500 shares of the Company’s Common Stock to persons who are members of the Company’s Board of Directors and not employees or officers of the Company.  The 1995 Director Plan requires that options granted thereunder will expire ten years from the date of grant.  Each option granted under the 1995 Director Plan becomes exercisable over a five year period, and vests in an installment of 20% of the total option grant upon the expiration of one year from the date of the option grant, and thereafter vests in equal quarterly installments of 5%.

 

In February 2002, the Board of Directors approved a plan permitting all option holders under the 1995 Plan and 1995 Director Plan to surrender all or any portion of their options on or before March 1, 2002. By March 1, 2002, a total of 303,550 options to purchase the Company’s Common Stock under the 1995 Plan and 1995 Director Plan were surrendered. All of the options surrendered were exercisable in excess of the market price of the underlying Common Stock as of the dates of surrender.   As of December 31, 2016, there are no shares of common stock available for future award grants to employees and directors under the 1995 Plan or the 1995 Director Plan.

 

At the annual stockholder’s meeting held on June 14, 2006, the Company’s stockholders approved the 2006 Stock-Based Compensation Plan (the “2006 Plan”). The 2006 Plan authorizes the grant of Stock Options, Stock Units, Stock Appreciation Rights, Restricted Stock, Deferred Stock, Stock Bonuses, and other equity-based awards. The number of shares of Common Stock initially available under the 2006 Plan is 800,000.  As of December 31, 2016, there are no shares of common stock available for future award grants to employees and directors under this plan.

 

At the annual stockholder’s meeting held on June 6, 2012, the Company’s stockholders approved the 2012 Stock-Based Compensation Plan (the “2012 Plan”). The 2012 Plan authorizes the grant of Stock Options, Stock Units, Stock Appreciation Rights, Restricted Stock, Deferred Stock, Stock Bonuses and other equity-based awards. The total number of shares of Common Stock initially available for award under the 2012 Plan was 600,000.  As of December 31, 2016, the number of shares of Common stock available for future award grants to employees and directors under the 2012 Plan is 303,061.

 

During 2014, the Company granted a total of 98,689 shares of Restricted Stock to officers, directors and employees. These shares of Restricted Stock vest between one and twenty equal quarterly installments. A total of 34,487 shares of Restricted Stock were forfeited as a result of officers and employees terminating employment with the Company.

 

During 2015, the Company granted a total of 44,000 shares of Restricted Stock to officers. These shares of Restricted Stock vest over sixteen equal quarterly installments.  In 2015, a total of 4,465 shares of Restricted Stock were forfeited as a result of officers and employees terminating employment with the Company.

 

During 2016, the Company granted a total of 171,252 shares of Restricted Stock to officers, directors and employees. These shares of Restricted Stock vest between one and twenty equal quarterly installments.  In 2016, a total of 7,167 shares of Restricted Stock were forfeited as a result of directors and employees terminating employment with the Company.

 

Changes during 2014, 2015 and 2016 in options outstanding under the Company’s combined plans (i.e. the 2012 Plan, the 2006 Plan, the 1995 Non-Employee Director Plan and the 1995 Stock Plan) were as follows:

 

 

 

 

 

 

 

 

 

    

 

    

Weighted

 

 

 

Number

 

Average

 

 

 

of

 

Exercise

 

 

 

Options

 

Price

 

Outstanding at January 1, 2014

 

285,640

 

 

8.71

 

Granted in 2014

 

 —

 

 

 —

 

Canceled in 2014

 

15,000

 

 

3.04

 

Exercised in 2014

 

220,000

 

 

8.144

 

Outstanding at December 31, 2014

 

50,640

 

 

12.85

 

Granted in 2015

 

 —

 

 

 —

 

Canceled in 2015

 

6,000

 

 

12.85

 

Exercised in 2015

 

44,640

 

 

12.85

 

Outstanding at December 31, 2015

 

 —

 

 

 —

 

Granted in 2016

 

 —

 

 

 —

 

Canceled in 2016

 

 —

 

 

 —

 

Exercised in 2016

 

 —

 

 

 —

 

Outstanding at December 31, 2016

 

 —

 

 

 —

 

Exercisable at December 31, 2016

 

 —

 

$

 —

 

 

There were no options exercisable at December 31, 2016 and 2015, respectively.

 

Under the various plans, options that are cancelled can be reissued. At December 31, 2016, no options were reserved for future issuance.

 

A summary of nonvested shares of Restricted Stock awards outstanding under the Company’s 2006 Plan and 2012 Plan as of December 31, 2016, 2015 and 2014 and changes during the three years ended December 31, 2016, 2015 and 2014 is as follows:

 

 

 

 

 

 

 

 

 

    

 

    

Weighted

 

 

 

 

 

Average Grant

 

 

 

 

 

Date

 

 

 

Shares

 

Fair Value

 

Nonvested shares at January 1, 2014

 

199,550

 

$

12.02

 

Granted in 2014

 

98,689

 

 

16.03

 

Vested in 2014

 

(101,143)

 

 

11.94

 

Forfeited in 2014

 

(34,487)

 

 

11.62

 

Nonvested shares at December 31, 2014

 

162,609

 

$

12.02

 

Granted in 2015

 

44,000

 

 

14.99

 

Vested in 2015

 

(78,815)

 

 

13.64

 

Forfeited in 2015

 

(4,465)

 

 

12.80

 

Nonvested shares at December 31, 2015

 

123,329

 

$

16.34

 

Granted in 2016

 

171,252

 

 

17.03

 

Vested in 2016

 

(101,333)

 

 

14.57

 

Forfeited in 2016

 

(7,167)

 

 

15.98

 

Nonvested shares at December 31, 2016

 

186,081

 

$

15.58

 

 

As of December 31, 2016, there was approximately $2.9 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 3.3 years.

 

For the years ended December 31, 2016, 2015 and 2014,the Company recognized share-based compensation cost of approximately $1.7 million, $1.2 million and $1.3 million, respectively, which is included in selling, general and administrative expenses.  The Company does not capitalize any share-based compensation cost.