6.  Stockholders’ Equity and Stock Based Compensation

 

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 was 800,000.  As of December 31, 2017, 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, 2017, the number of shares of Common stock available for future award grants to employees and directors under the 2012 Plan is 245,846.

 

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 twelve 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.

 

During 2017, the Company granted a total of 87,076 shares of Restricted Stock to officers, and employees. These shares of Restricted Stock vest between twelve and twenty equal quarterly installments.  In 2017, a total of 22,694 shares of Restricted Stock were forfeited as a result of directors and employees terminating employment with the Company.

 

Changes during 2016 and 2017 of options outstanding under the Company’s combined plans (i.e. the 2012 Plan, the 2006 Plan) were as follows:

 

 

There were no options exercisable at December 31, 2017 and 2016, respectively.

 

Under the various plans, options that are cancelled can be reissued. At December 31, 2017, 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, 2017, and 2016 and changes during the years ended December 31, 2017, and 2016 is as follows:

 

 

As of December 31, 2017, there was approximately $2.6 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 3.1 years.

 

For the years ended December 31, 2017, 2016 and 2015, the Company recognized share-based compensation cost of approximately $1.5 million, $1.7 million and $1.2 million, respectively, which is included in selling, general and administrative expenses.  The Company does not capitalize any share-based compensation cost.