InfuSystem Holdings, Inc. Annual report pursuant to section 13 and 15(d)

Annual report pursuant to section 13 and 15(d)

Share-based Compensation (Tables)

Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

The following table summarizes restricted share activity for the years ended December 31:


				Weighted
	Number of			average
	shares			grant
	(In			date fair
	thousands)			value
Unvested at December 31, 2011		2,636		$	1.88
Granted		343			1.82
Vested		(169	)		1.82
Vested shares forgone to satisfy minimum statutory withholding		(70	)		1.81
Forfeitures		(2,172	)		1.40

Unvested at December 31, 2012		568		$	1.87
Granted		212			1.73
Vested		(168	)		2.00
Vested shares forgone to satisfy minimum statutory withholding		(55	)		1.82
Forfeitures		(103	)		1.65

Unvested at December 31, 2013		454		$	1.82

Summary of Stock Options and Inducement Stock Options Activity

The following table details the various stock options and inducement stock options issued activity for the years ended December 31:


2007 Plan (Options)	Number of Authorized Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term(in Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2011		—		$	—
Granted		1,375,000			2.21		3.62
Exercised		—			—
Forfeited		—			—

Outstanding at December 31, 2012		1,375,000			2.21		3.62		—	(a)
Granted		245,000			1.52		2.69
Exercised		—			—
Forfeited		(26,666	)		2.13

Outstanding at December 31, 2013		1,598,334		$	2.11		3.09		53,083

Exercisable at December 31, 2013		1,279,584		$	2.21

(a)	Options were not in-the-money as of December 31, 2012.

Aggregate Intrinsic Value = Excess of market value at December 31st over the option exercise price of all in-the-money stock options outstanding at December 31st.


Inducement Options	Number of Authorized Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term(in Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2012		—	$	—		—	$	—
Granted		800,000		2.25		4.87
Exercised		—		—
Forfeited		—		—

Outstanding at December 31, 2013		800,000		2.25		4.87	$	156,000

Exercisable at December 31, 2013		—	$	—

Schedule of Stock Options Outstanding

The following table summarizes information about stock options outstanding at December 31, 2013.


2007 Plan (Options):	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number of Shares Outstanding		Weighted- Average Remaining Contractual Life		Weighted- Average Exercise Price		Number of Shares Exercisable		Weighted- Average Exercise Price
$1.50 - $1.75		245,000		2.69	$	1.52		45,000	$	1.52
$1.76 - $2.00		110,000		4.01		1.93		33,750		1.93
$2.01 - $2.25		1,238,334		3.06		2.24		1,200,834		2.25

Outstanding at December 31, 2013		1,593,334		3.09	$	2.11		1,279,584	$	2.21


Inducement Options:	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number of Shares Outstanding		Weighted- Average Remaining Contractual Life		Weighted- Average Exercise Price		Number of Shares Exercisable		Weighted- Average Exercise Price
$1.50 - $1.75		400,000		4.76	$	1.75		—	$	—
$2.26 - $2.75		400,000		5.01		2.75		—		—

Outstanding at December 31, 2013		800,000		4.87	$	2.25		—	$	—

Schedule of Share-based Compensation Expense Based on Fair Value of Options

The following is the average fair value per share estimated on the date of grant and the assumptions used for options granted during the year ended December 31:


Stock Options:	2013		2012
Expected volatility		29% to 57%		60%
Risk free interest rate		0.25% to 0.45%		0.25%
Expected lives at date of grant (in years)		2.89		3.42
Weighted average fair value of options granted		$1.52		$2.21


Inducement Stock Options:	2013
Expected volatility		56%
Risk free interest rate		0.25%
Expected lives at date of grant (in years)		5.34
Weighted average fair value of options granted	$	2.25

Stock Based Compensation

The following table presents the total stock-based compensation expense, which is included in selling, general and administrative expenses for the years ended December 31 (in thousands):


	2013		2012
Restricted share expense	$	586	$	451	*
Stock option expense		534		513

Total stock-based compensation expense	$	1,120	$	964

*	Includes $0.4 million expense reversal for previously recognized tax gross-up liability; a change in estimate due to the $0.9 million forfeiture of 2.0 million restricted share grants; and $1.0 million of additional stock compensation expense due to the Settlement Agreement described in Note 3.