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Share-Based Compensation
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6 Months Ended | |||
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Jun. 30, 2011
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| Share-Based Compensation [Abstract] | ||||
| SHARE-BASED COMPENSATION |
On June 1, 2011, the Company’s compensation committee approved the issuance of 660,000
shares of restricted stock, then valued at the closing price of the Company’s stock ($3.88),
with no discount. The majority of the shares (600,000) will vest in two years, and will be
fully vested on June 1, 2013. The remaining shares will vest over three years, 20,001 on
June 1, 2012, 20,001 on June 1, 2013, and 19,998 on June 1, 2014. Vesting is contingent
upon certain conditions, including continuous service of the individual recipients. The
unvested grants are viewed as a series of individual awards and the related share-based
compensation expense was initially recorded as deferred compensation expense, reported as a
reduction of stockholder’s equity, and will subsequently be amortized into compensation
expense on a straight-line basis as services are provided over the vesting period.
The Company recognized stock compensation expense of $103,470 and $0 for the three months
ended June 30, 2011 and June 30, 2010, respectively, and $103,470 and $16,683 for
the six months ended June 30, 2011 and June 30, 2010, respectively. Share based
compensation expense related to the amortization of the restricted stock issued is
included in selling, general and administrative expense.
In the second quarter of 2011 and 2010, the Company issued 6,000 shares of unrestricted stock
in conjunction with director compensation, which was valued at $24,060 and $17,460 based on
the closing price of the Company’s stock of $4.01 and $2.91, with no discount. Since the
shares were fully vested at the date of grant, the Company recognized share-based
compensation expense of $24,060 and $17,460 related to these grants.
At June 30, 2011, the Company recorded deferred share-based compensation of $2,457,330. At
June 30, 2010, the Company had no deferred share-based compensation recorded.
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