Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2015

11. STOCK-BASED COMPENSATION

Stock-based compensation of approximately $588,000 and $548,000 during the three months and $1,289,000 and $973,000 during the six months ended June 30, 2015, and 2014, respectively, was recognized.

Restricted Stock Awards

On May 20, 2015, we awarded 30,000 shares of restricted stock to a director at a grant date price of $12.39. The restricted stock award vests over 5 years in 20% increments with the first tranche to be issued on May 19, 2016. Compensation expense recognized during the three and six months ended June 30, 2015, was approximately $6,000.

On April 14, 2015, we awarded 1,000 shares of restricted stock to two of our 30 year employees at a grant date price of $12.03. The restricted stock award was fully vested. Compensation expense recognized during the three and six months ended June 30, 2015, was approximately $12,000.

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 and six months ended June 30, 2015, was approximately $77,000 and $258,000.

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 and six months ended June 30, 2015, was approximately $108,000 and $179,000.

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

	Shares of Restricted Stock			Weighted Average Grant Date Price per Share

Outstanding at January 1, 2015		-		$	-
Granted		167,040			14.56
Vested		(19,000	)		14.34
Outstanding at June 30, 2015		148,040		$	14.59

Stock Option and Warrant Awards

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

	Number of Stock Options & Warrants			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life

Outstanding at January 1, 2015		1,598,191		$	7.16
Granted		--			--
Exercised		(100,420	)		4.13
Expired		--			--
Cancelled		--			--
Forfeited		--			--
Outstanding at June 30, 2015		1,497,771		$	7.36		6.4
Exercisable at June 30, 2015		735,271		$	6.23		5.7

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 $53,000 and $76,000 during the three months and $128,000 and $170,000 during the six months ended June 30, 2015, and 2014, respectively, was recognized related to options to purchase shares vesting through 2017.

Employee compensation of approximately $309,000 and $427,000 during the three months and $657,000 and $701,000 during the six months ended June 30, 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 and $49,000 during the six months ended June 30, 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 $21,000 during the three months and $0 and $54,000 during the six months ended June 30, 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.