Quarterly report pursuant to Section 13 or 15(d)

Shareholders' Equity

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Shareholders' Equity
 3 Months Ended
Mar. 31, 2016
Equity [Abstract]  
Shareholders' Equity
Shareholders’ Equity

Repurchase Program

In March 2007, the Company’s board of directors authorized the repurchase of up to 2,500,000 shares of the Company’s common stock from time to time on the open market or in privately negotiated transactions, depending on market conditions. In October 2011, the board approved an amendment to the repurchase program to permit the purchase of up to an additional 5,000,000 shares, and another amendment was approved in November 2014 to permit the repurchase of an additional 10,000,000 shares. Since inception through March 31, 2016, 13,792,959 shares of common stock have been repurchased for $35,643 under the program and have been retired, including the repurchase of 1,523,392 shares for $3,664 during the three months ended March 31, 2016. As of March 31, 2016, 3,707,041 shares remain available for purchase under the program.

Stock Compensation Plans

Options granted during the three months ended March 31, 2016 were as follows:

Grant Date
 
Expiration Date
Shares
Exercise Price
Grant Date Fair Value (1)
January 14, 2016
(2) 
January 14, 2026
900,000
$
2.65

$
960

January 14, 2016
(2)(3) 
January 14, 2026
30,000
$
2.65

$
50

 
 
 
930,000
 
$
1,010


(1)
Fair value is calculated using the Black-Scholes option pricing model.
(2)
Options vest in four equal annual installments beginning on the first anniversary of the respective grant dates.
(3)
Compensation expense recognized each period is based on the award's estimated value at the most recent reporting date.

Options to purchase 52,428 shares of common stock were forfeited during the three months ended March 31, 2016.

As of March 31, 2016, there was $12,166 of unrecognized compensation cost for stock-based compensation, of which $950 related to the 2016 grants described above. This cost is expected to be recognized over the vesting periods of the options, which on a weighted-average basis are approximately 2.44 years for all grants and approximately 3.75 years for the 2016 grants.

Options were exercised to purchase 1,304,539 shares of the Company’s common stock during the three months ended March 31, 2016, for which the intrinsic value on dates of exercise was $1,717.

Restricted stock granted during the three months ended March 31, 2016 was as follows:
Grant Date
 
Final Vesting Date
Shares
Fair Value (1)
January 14, 2016
(2) 
January 14, 2020
1,050,000

$
2,384

January 22, 2016
(2) 
January 22, 2020
281,000

$
604

 
 
 
1,331,000

$
2,988



(1)
Fair value is calculated using the closing price on the grant date.
(2)
Vests in four equal annual installments beginning on the first anniversary of the grant date.

As of March 31, 2016, there was $5,922 of unrecognized compensation cost for stock-based compensation related to restricted stock grants, of which $2,699 related to the 2016 grants described above. This cost is expected to be recognized over the vesting periods of the restricted stock, which on a weighted-average basis are approximately 3.20 years for all grants and approximately 3.75 years for the 2016 grants.

Stock-based compensation, including options and restricted stock, attributed to employees was $1,352 and attributed to consultants and independent financial advisors was $3 for the three months ended March 31, 2016, respectively.

Capital Stock

During the three months ended March 31, 2016, the Company sold 10,000 shares of Series A Preferred Stock, pursuant to the Company's “at the market” offering programs, which provided total gross proceeds to the Company of $241, before deducting the commission paid to unaffiliated sales agents and offering expenses aggregating $41.

For the three months ended March 31, 2016, the Company paid dividends of $7,345 on its outstanding Series A Preferred Stock based on a monthly dividend of approximately $0.1667 per share.