Quarterly report pursuant to Section 13 or 15(d)

Shareholders' Equity

v3.5.0.2
Shareholders' Equity
 9 Months Ended
Sep. 30, 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 September 30, 2016, 16,962,604 shares of common stock have been repurchased for $43,496 under the program and have been retired, including the repurchase of 1,597,126 shares for $3,800 and 4,693,037 shares for $11,515 during the three and nine months ended September 30, 2016, respectively. As of September 30, 2016, 537,396 shares remained available for purchase under the program. See Note 15 for information regarding a further amendment to the Company's stock repurchase program.

Stock Compensation Plans

Options granted during the nine months ended September 30, 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

May 18, 2016
(4) 
May 18, 2026
400,000
$
2.40

$
417

 
 
 
1,330,000
 
$
1,427


(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.
(4)
Options vest on the one year anniversary of the grant date.

Options to purchase 17,407 and 69,835 shares of common stock were forfeited during the three and nine months ended September 30, 2016, respectively.

As of September 30, 2016, there was $4,984 of unrecognized compensation cost for stock-based compensation related to options, of which $1,060 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 2.12 years for all grants and approximately 2.67 years for the 2016 grants.

Options and warrants were exercised to purchase 3,797,272 and 7,356,887 shares of the Company’s common stock during the three and nine months ended September 30, 2016, respectively, for which the intrinsic value on dates of exercise was $5,426 and $10,210, respectively. See Note 15 for information regarding the exercise of warrants to purchase 10,699,999 shares of the Company's common stock in October 2016.

Restricted stock granted during the nine months ended September 30, 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

May 26, 2016
(2) 
May 26, 2020
10,000

$
26

 
 
 
1,341,000

$
3,014


(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.

For the nine months ended September 30, 2016, 10,000 shares of restricted stock were forfeited.

As of September 30, 2016, there was $5,006 of unrecognized compensation cost for stock-based compensation related to restricted stock grants, of which $2,358 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 2.72 years for all grants and approximately 3.25 years for the 2016 grants.

Stock-based compensation, including options and restricted stock, attributed to employees was $1,286 and $3,964 for the three and nine months ended September 30, 2016, respectively.

Stock based compensation for consultants and independent financial advisors was $14 and $32 for the three and nine months ended September 30, 2016, respectively. In the three and nine months ended September 30, 2016, 1,588,988 and 2,865,263 shares, respectively, were surrendered to cover payment of exercise prices and taxes.

Capital Stock

On May 18, 2016, the Company's shareholders approved an amendment to the Company's Articles of Incorporation to increase the number of shares of preferred stock authorized from 25,000,000 to 50,000,000 and to increase the number of shares of common stock authorized from 800,000,000 to 1,000,000,000.

During the three and nine months ended September 30, 2016, the Company sold 789,468 and 1,161,895 shares of Series A Preferred Stock, pursuant to the Company's “at the market” offering program, which provided total gross proceeds to the Company of $19,266 and $28,303, before deducting the commission paid to unaffiliated sales agents and offering expenses aggregating $422 and $682, respectively.

For the three and nine months ended September 30, 2016, the Company paid dividends of $7,780 and $22,514, respectively, on its outstanding Series A Preferred Stock based on a monthly dividend of approximately $0.1667 per share.