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STOCK-BASED COMPENSATION
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Jun. 30, 2014
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| STOCK-BASED COMPENSATION |
10. STOCK-BASED COMPENSATION
On February 21, 2014, we awarded 10 year options to various employees for 500,000 shares. These options have an exercise price equal to the closing price of the stock on February 21, 2014, which was $12.26 and vest in 25% increments over a 4 year period. Compensation expense recognized during the three months and six months ended June 30, 2014, was approximately $277,000 and $400,000, respectively. The fair value of the options granted was calculated using the Black-Scholes option valuation model with the following assumptions:
A summary of the status of our stock option awards and warrants is presented below:
The fair value of the previously issued 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 and $170,000 and $189,000 during the six months ended June 30, 2014, and 2013, respectively, were recognized related to options to purchase shares vesting through 2017.
Excluding the options granted in 2014 as disclosed above, employee compensation of approximately $150,000 and $119,000 during the three months and $300,000 and $238,000 during the six months ended June 30, 2014, and 2013, respectively, was recognized related to options with a 4 year vesting period awarded to officers and key employees. These options vest through 2017.
Post-retirement compensation of approximately $24,000 was recognized during the three months and $49,000 during the six months ended June 30, 2014, and 2013, 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 15.
Investor relations expense of approximately $21,000 and $42,000 during the three months and $54,000 and $71,000 during the six months ended June 30, 2014, and 2013, respectively, was recognized related to warrants issued for the purchase of 100,000 shares of common stock to Genesis Select Corporation (“Genesis”). These warrants vest through 2017 contingent upon continuous investor relations service under the consulting agreement with Genesis.
See the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, for additional information.
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