Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION

v2.4.1.9
STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2015
STOCK-BASED COMPENSATION [Abstract]  
STOCK-BASED COMPENSATION
11. STOCK-BASED COMPENSATION

Stock-based compensation recognized in the first three months of 2015 and 2014 was approximately $701,000 and $425,000, respectively.

Restricted Stock Awards

On February 10, 2015, we awarded 118,040 shares of restricted stock to our officers at a grant date price of $14.59.  The restricted stock award vests over 4 years in 25% increments with the first tranche to be issued on February 9, 2016.  Compensation expense recognized during the three months ended March 31, 2015, was approximately $72,000.

On February 12, 2015, we awarded 18,000 shares of fully vested restricted stock to various employees at a grant date price of $14.34.  Compensation expense recognized during the three months ended March 31, 2015, was approximately $181,000.

Restricted stock activity in the first three months of 2015 was as follows:

   
Shares of Restricted
Stock
    
Weighted Average Grant Date Price per Share
 
         
Outstanding at January 1, 2015
    
-
    
$
-
  
   Granted
    
136,040
      
14.56
  
   Vested
    
(18,000
)
    
14.34
  
Outstanding at March 31, 2015
    
118,040
    
$
14.59
  

Stock Option and Warrant Awards

A summary of the status of our stock option awards and warrants is presented below:

   
Number of StockOptions & Warrants
   
Weighted Average Exercise Price per Share
   
Weighted
Average
Remaining
Contractual
Life
  
             
Outstanding at January 1, 2015
    
1,598,191
    
$
7.16
      
   Granted
    
--
      
--
      
   Exercised
    
(71,100
)
    
4.06
      
   Expired
    
--
      
--
      
   Cancelled
    
--
      
--
      
   Forfeited
    
--
      
--
      
Outstanding at March 31, 2015
    
1,527,091
    
$
7.30
      
6.7
  
Exercisable at March 31, 2015
    
744,591
    
$
6.21
      
6.0
  

The fair value of the options granted below was calculated using the Black Scholes option valuation model with the assumptions as disclosed in prior quarterly and annual filings.

Directors’ compensation of approximately $76,000 and $94,000 during the three months ended March 31, 2015, and 2014,  respectively, was recognized related to options to purchase shares vesting through 2017.

Employee compensation of approximately $348,000 and $274,000 during the three months ended March 31, 2015, and 2014, respectively, was recognized related to options with a 4 year vesting period which were awarded to officers and key employees.  These options vest through 2018.

Post-retirement compensation of approximately $24,000 was recognized during the three months ended March 31, 2015, and 2014, related to options awarded to Mr. Hatem El Khalidi in July 2009.  On May 9, 2010, the Board of Directors determined that Mr. El Khalidi forfeited these options and other retirement benefits when he made various demands against the Company and other AMAK Saudi shareholders which would benefit him personally and were not in the best interests of the Company and its shareholders.  The Company is litigating its right to withdraw the options and benefits and as such, these options and benefits continue to be shown as outstanding.  See further discussion in Note 17.

Investor relations expense of approximately $0 and $33,000 during the three months ended March 31, 2015, and 2014, respectively, was recognized related to warrants issued for the purchase of 100,000 shares of common stock to Genesis Select Corporation (“Genesis”).  Our agreement with Genesis was terminated effective September 30, 2014; therefore, no additional amounts will vest going forward.

See the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, for additional information.