Management Incentive Plans
|12 Months Ended|
Dec. 31, 2016
|Disclosure of Compensation Related Costs, Share-based Payments [Abstract]|
|Management Incentive Plan Disclosure [Text Block]||
Note 21 Management Incentive Plans
Upon approval of the Business Combination, the Company adopted the 1347 Capital Corp. 2016 Omnibus Incentive Plan (the “2016 Plan”). Certain employees, directors and consultants will be eligible to be granted awards under the 2016 Plan, other than incentive stock options, which may be granted only to employees. Successor has reserved 800,000 shares of the Company’s common stock for issuance under the 2016 Plan. The number of shares issued or reserved pursuant to the 2016 Plan will be adjusted by the plan administrator, as they deem appropriate and equitable, as a result of stock splits, stock dividends, and similar changes in the Company’s common stock. In connection with the grant of an award, the plan administrator may provide for the treatment of such award in the event of a change in control. No stock-based awards have been granted under the 2016 Plan.
Effective July 20, 2006, the Board of Directors adopted a management option plan for executives and key employees and reserved 1,697,500 Class C units for that purpose. The option plan was amended by the Board of Directors in 2015 to increase the number of Class C units available to 2,000,000. These options vested over four years; 50% in year two and 25% in years three and four respectively, and all unexercised options were set to expire fifteen years from the date of issuance. As of December 31, 2015 unexercised options were set to expire between 2021 and 2030. These management options were only exercisable in conjunction with a change in control of the Company, consummation of an initial public offering, or dissolution of the Company, as defined by the agreement. At December 31, 2015, no options had been exercised and no compensation expense had been recognized in the Company’s financial statements. No additional management options were granted during 2016.
Stock option activity for 2015 is set forth below:
For options issued in 2015, the following assumptions were utilized in the Black-Scholes pricing model:
Forfeitures have historically been insignificant so they were estimated at zero.
The Company had the following options vested at December 31:
Stock options outstanding at December 31, 2015 had a weighted-average remaining contractual life of approximately 8 years. Total options available for grant were 247,500 at December 31, 2015.