Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPMENSATION

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STOCK-BASED COMPMENSATION
 6 Months Ended
Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
STOCK-BASED COMPMENSATION
STOCK-BASED COMPENSATION
 
Stock-based compensation expense totaled $10,000 and $20,000 for the three months ended June 30, 2016 and 2015, respectively, and $84,000 and $35,000 for the six months ended June 30, 2016 and 2015, respectively. No tax benefits were attributed to the stock-based compensation because a valuation allowance was maintained for substantially all net deferred tax assets. During March 2016, the Company modified the vesting feature of an award granted to a director who decided to not stand for re-election at the Company’s 2016 annual meeting of stockholders. The modification of the award resulted in an additional $64,000 in stock-based compensation expense for the three months ended March 31, 2016.

At the Company’s annual meeting of stockholders held on April 7, 2016, the Company’s stockholders approved the Natural Health Trends Corp. 2016 Equity Incentive Plan (the “2016 Plan”) to replace its 2007 Equity Incentive Plan. The 2016 Plan allows for the grant of various equity awards including incentive stock options, non-statutory options, stock, stock units stock appreciation rights and other similar equity-based awards to the Company’s employees, officers, non-employee directors, contractors, consultants and advisors of the Company. Up to 2,500,000 shares of the Company’s common stock (subject to adjustment under certain circumstances) may be issued pursuant to awards granted.
On April 8, 2016, the Company initially granted 51,015 shares of restricted common stock under the 2016 Plan to certain employees for the purpose of further aligning their interest with those of its stockholders and settling fiscal 2015 performance incentives. The shares vest on a quarterly basis over the next three years and are subject to forfeiture in the event of the employee’s termination of service to the Company under specified circumstances.

The following table summarizes the Company’s restricted stock activity under the 2016 Plan:
 
Shares
 
Wtd. Avg. Price at Date of Issuance
Nonvested at December 31, 2015
—

 
$
—

Granted
51,015

 
34.13

Vested
(4,255
)
 
34.13

Nonvested at June 30, 2016
46,760

 
34.13



The following table summarizes the Company’s other restricted stock activity:
 
Shares
 
Wtd. Avg. Price at Date of Issuance
Nonvested at December 31, 2015
44,712

 
$
12.15

Granted
—

 
—

Vested
(11,182
)
 
12.15

Nonvested at June 30, 2016
33,530

 
12.15


 
As of June 30, 2016, total unrecognized stock-based compensation expense related to non-vested restricted stock was $59,000, which is expected to be recognized over a weighted-average period of 1.5 years.