NCEM » Topics » Stock-Based Compensation -

This excerpt taken from the NCEM 10-Q filed Jul 31, 2008.
Stock-Based Compensation – The Company has a stock-based employee compensation plan.  The Company accounts for stock-based compensation in accordance with Financial Accounting Standard (“SFAS”) No. 123R, Share-Based Payment, an amendment of FASB Statements 123 and 95, which requires the Company to measure the compensation cost of stock options and other stock-based awards to employees and directors at fair value at the grant date and recognize compensation expense over the requisite service period for awards expected to vest.  The Company’s current practice is to grant options to employees and members of its Board of Directors that vest immediately, resulting in reporting the entire compensation expense for the options in the period in which they are granted.  No stock options were granted to employees or directors during the three and six months ended June 30, 2008 and 2007.

 

This excerpt taken from the NCEM 10-Q filed May 2, 2008.
Stock-Based Compensation – The Company has a stock-based employee compensation plan.  The Company accounts for stock-based compensation in accordance with Financial Accounting Standard (“SFAS”) No. 123R, Share-Based Payment, an amendment of FASB Statements 123 and 95, which requires the Company to measure the compensation cost of stock options and other stock-based awards to employees and directors at fair value at the grant date and recognize compensation expense over the requisite service period for awards expected to vest.  The Company’s current practice is to grant options to employees and members of its Board of Directors that vest immediately, resulting in reporting the entire compensation expense for the options in the period that they are granted.  No stock options were granted to employees or directors during the three months ended March 31, 2008 and 2007.

 

This excerpt taken from the NCEM 10-Q filed Oct 30, 2007.
Stock-Based Compensation - On January 1, 2006, the Company adopted SFAS No. 123(R), which requires the Company to measure the compensation cost of stock options and other stock-based awards to employees and directors at fair value at the grant date and recognize compensation expense over the requisite service period for awards expected to vest.  The fair value of stock options is computed using the Black-Scholes valuation model, which model utilizes inputs that are subject to change over time, including the volatility of the market price of the Company’s common stock, risk-free interest rates, requisite service periods, and assumptions made by the Company regarding the assumed life and vesting of stock options and stock-based awards.  As new options or stock-based awards are granted and vest, additional non-cash compensation expense will be recorded by the Company.

 

 

Results of Operations

 

 

This excerpt taken from the NCEM 10-Q filed Aug 1, 2007.
Stock-Based Compensation - On January 1, 2006, the Company adopted SFAS No. 123(R), which requires the Company to measure the compensation cost of stock options and other stock-based awards to employees and directors at fair value at the grant date and recognize compensation expense over the requisite service period for awards expected to vest.  The fair value of stock options is computed using the Black-Scholes valuation model, which model utilizes inputs that are subject to change over time, including the volatility of the market price of the Company’s common stock, risk-free interest rates, requisite service periods, and assumptions made by the Company regarding the assumed life and vesting of stock options and stock-based awards.  As new options or stock-based awards are granted and vest, additional non-cash compensation expense will be recorded by the Company.

Results of Operations

This excerpt taken from the NCEM 10-Q filed May 8, 2007.
Stock-Based Compensation - On January 1, 2006, the Company adopted SFAS No. 123(R), which requires the Company to measure the compensation cost of stock options and other stock-based awards to employees and directors at fair value at the grant date and recognize compensation expense over the requisite service period for awards expected to vest.  The fair value of stock options is computed using the Black-Scholes valuation model, which model utilizes inputs that are subject to change over time, including the volatility of the market price of the Company’s common stock, risk-free interest rates, requisite service periods, and assumptions made by the Company regarding the assumed life and vesting of stock options and stock-based awards.  As new options or stock-based awards are granted and vest, additional non-cash compensation expense will be recorded by the Company.

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Results of Operations

Equity in earnings of Cyanco decreased $643,000, or 41%, to $927,000 in the three months ended March 31, 2007 compared to $1,570,000 in the three months ended March 31, 2006.  Cyanco revenues decreased $1,944,000, or 15%, to $11,251,000 in the three months ended March 31, 2007 compared to $13,195,000 in the three months ended March 31, 2006.  The decrease in Cyanco revenues is due primarily to a decrease in product sales and the “lag effect” in our historical cost plus pricing agreements, which beneficially affected the prior year quarter.  Product sales volumes for the first quarter of 2007 were down 8% primarily due to one mining operations decision to cease operations at one facility, and a much slower than anticipated start up of a new replacement mining facility in the first quarter of 2007.  In addition, we experienced lower margins in 2007 as compared to the same period in 2006 as a result of the “lag effect” of its cost plus pricing arrangements.   Cyanco has the ability, under certain of its contracts, to pass on increases in the cost of raw materials to its customers and the obligation to pass on decreases.  However, price changes to Cyanco’s customers historically often lagged the changes in the cost of raw materials by two to four months.  As a result of dropping raw material prices in the first quarter of 2006, this “lag effect” resulted in Cyanco realizing a higher price per pound for sodium cyanide sold during the three months ended March 31, 2006 as compared to the same period in 2007.  This delay in pricing adjustments has been eliminated from most of Cyanco’s contracts and the agreements are now largely adjusted on a monthly basis.  Cyanco’s costs and expenses decreased $659,000, or 7%, to $9,396,000 in the three months ended March 31, 2007 compared to $10,055,000 in the three months ended March 31, 2006.  The decrease in operating costs in the current year resulted primarily from the lower volumes of product sold.  As a result, Cyanco’s net income before taxes (on a 100% basis) decreased $1,285,000, or 41%, to $1,855,000 during the three months ended March 31, 2007 compared to $3,140,000 in the three months ended March 31, 2006.

This excerpt taken from the NCEM 10-K filed Mar 29, 2007.
Stock-Based Compensation — The Company has a stock-based employee compensation plan, which is described more fully in Note 4.  On January 1, 2006, the Company adopted Financial Accounting Standard (“SFAS”) No. 123R, Share-Based Payment, an amendment of FASB Statements 123 and 95, which requires the Company to measure the compensation cost of stock options and other stock-based awards to employees and directors at fair value at the grant date and recognize compensation expense over the requisite service period for awards expected to vest.  The Company’s current practice is to grant options to members of its Board of Directors that vest immediately, resulting in reporting the entire compensation expense for the options in the period that they are granted.

This excerpt taken from the NCEM 10-Q filed Oct 31, 2006.
Stock-Based Compensation - On January 1, 2006, the Company adopted SFAS No. 123(R), which requires the Company to measure the compensation cost of stock options and other stock-based awards to employees and directors at fair value at the grant date and recognize compensation expense over the requisite service period for awards expected to vest.  The Company’s current practice is to grant options to members of its Board of Directors that vest immediately, resulting in

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reporting the entire compensation expense for the options in the period that they are granted.  During the three months ended June 30, 2006 and the nine months ended September 30, 2006, the Company reported compensation expense of $269,000 for stock options issued to directors in April 2006.  The fair value of stock options is computed using the Black-Scholes valuation model, which model utilizes inputs that are subject to change over time, and includes assumptions made by the Company with respect to the volatility of the market price of the Company’s common stock, risk-free interest rates, requisite service periods, and the assumed life and vesting of stock options and stock-based awards.  As new options or stock-based awards are granted and vest, additional non-cash compensation expense will be recorded by the Company.

Results of Operations

This excerpt taken from the NCEM 10-Q filed Aug 1, 2006.
Stock-Based Compensation - On January 1, 2006, the Company adopted SFAS No. 123(R), which requires the Company to measure the compensation cost of stock options and other stock-based awards to employees and directors at fair value at the grant date and recognize compensation expense over the requisite service period for awards expected to vest.  The Company’s current practice is to grant options to members of its Board of Directors that vest immediately, resulting in reporting the entire compensation expense for the options in the period that they are granted.  During the three months and six months ended June 30, 2006, the Company reported compensation expense of $269,000 for stock options issued to directors in April 2006.  The fair value of stock options is computed using the Black-Scholes valuation model, which model utilizes inputs that are subject to change over time, including the volatility of the market price of the Company’s common stock, risk-free interest rates, requisite service periods, and assumptions made by the Company regarding the assumed life and vesting of stock options and stock-based awards.  As new options or stock-based awards are granted and vest, additional non-cash compensation expense will be recorded by the Company.

Results of Operations

This excerpt taken from the NCEM 10-Q filed Apr 27, 2006.
Stock-Based Compensation - On January 1, 2006, the Company adopted SFAS No. 123(R), which requires the Company to measure the compensation cost of stock options and other stock-based awards to employees and directors at fair value at the grant date and recognize compensation expense over the requisite service period for awards expected to vest.  The fair value of stock options is computed using the Black-Scholes valuation model, which model utilizes inputs that are subject to change over time, including the volatility of the market price of the Company’s common stock, risk-free interest rates, requisite service periods, and assumptions made by the Company regarding the assumed life and vesting of stock options and stock-based awards.  As new options or stock-based awards are granted and vest, additional non-cash compensation expense will be recorded by the Company.

 

 

Results of Operations

 

Equity in earnings of Cyanco increased $876,000, or 126%, to $1,570,000 in the three months ended March 31, 2006 compared to $694,000 in the three months ended March 31, 2005.  Cyanco revenues increased $3,870,000, or 42%, to $13,195,000 in the three months ended March 31, 2006 compared to $9,325,000 in the three months ended March 31, 2005.  Increased market prices of gold have resulted in increased mining activities in the area served by Cyanco, resulting in higher volumes of product sold.  Cyanco experienced significant increases in raw material costs in the latter part of 2005, that have somewhat leveled out in the first three months of 2006.  Cyanco does have the ability, under certain of its contracts, to pass on increases in the cost of raw materials to its customers and the obligation to pass on decreases.  However, price changes to Cyanco’s customers often lag the changes in the cost of raw materials by two to four months.  This “lag effect” resulted in Cyanco realizing a higher price per pound for sodium cyanide sold during the three months ended March 31, 2006.  In addition, new business during the first quarter of 2006 that replaced a significant contract that expired December 31, 2005 has generated higher profit margins.  Cyanco’s costs and expenses increased $2,118,000, or 27%, to $10,055,000 in the three months ended March 31, 2006 compared to $7,937,000 in the three months ended March 31, 2005.  The increase in operating costs in the current year resulted primarily from the higher volumes of product sold and the increase in the cost of certain key raw material costs compared to the first three months of last year.  As a result, Cyanco’s net income before taxes (on a 100% basis) increased $1,752,000, or 126%, to $3,140,000 during the three months ended March 31, 2006 compared to $1,388,000 in the three months ended March 31, 2005.

 

This excerpt taken from the NCEM 10-K filed Mar 22, 2006.
Stock-Based Compensation — The Company has a stock-based employee compensation plan, which is described more fully in Note 9.  The Company accounts for that plan under the recognition and measurement principles of APB Opinion No. 25, Accounting for Stock Issued to Employees, and related interpretations.  No stock-based employee compensation cost is reflected in net income for the years ended December 31, 2005, 2004 and 2003, as no stock options were granted under the plan during these years.  Options outstanding at December 31, 2005 had an exercise price equal to or greater than the market value of the underlying common stock on the date of grant, and were fully vested on the date of grant.  Because no options were granted during the periods presented, no pro-forma presentation of the effect on net income and earnings per share assuming the Company applied the fair value recognition provisions of Statement No. 123, Accounting for Stock-Based Compensation, to stock-based employee compensation is presented.

 

This excerpt taken from the NCEM 10-K filed Dec 13, 2005.
Stock-Based Compensation – The Company has a stock-based employee compensation plan, which is described more fully in Note 11.  The Company accounts for that plan under the recognition and measurement principles of APB Opinion No. 25, Accounting for Stock Issued to Employees, and related interpretations.  No stock-based employee compensation cost is reflected in net income for the years ended December 31, 2004, 2003 and 2002, as no stock options were granted under the plan during these years.  Options outstanding at December 31, 2004 had an exercise price equal to or greater than the market value of the underlying common stock on the date of grant, and were fully vested on the date of grant.  Because no options were granted during the periods presented, no pro-forma presentation of the effect on net income and earnings per share assuming the Company applied the fair value recognition provisions of Statement No. 123, Accounting for Stock-Based Compensation, to stock-based employee compensation is presented.

 

This excerpt taken from the NCEM 10-Q filed Dec 13, 2005.
Stock-Based Compensation – For stock options granted to employees, the Company utilizes the footnote disclosure provisions of Statement of Financial Accounting Standards (SFAS) No. 123, Accounting for Stock-Based Compensation.  SFAS No. 123 encourages entities to adopt a fair-value based method of accounting for stock options or similar equity instruments.  However, it also allows an entity to continue measuring compensation cost for stock-based compensation using the intrinsic-value method of accounting prescribed by Accounting Principles Board (APB) Opinion No. 25, Accounting for Stock Issued to Employees.  The Company has elected to continue to apply the provisions of APB 25 and provide pro forma footnote disclosures required by SFAS No. 123 as applicable.  The pro forma footnote disclosures required by SFAS No. 123 are not applicable during the periods presented as no options were granted or vested during the periods presented.

 

This excerpt taken from the NCEM 10-Q filed Dec 13, 2005.
Stock-Based Compensation – For stock options granted to employees, the Company utilizes the footnote disclosure provisions of Statement of Financial Accounting Standards (SFAS) No. 123, Accounting for Stock-Based Compensation.  SFAS No. 123 encourages entities to adopt a fair-value based method of accounting for stock options or similar equity instruments.  However, it also allows an entity to continue measuring compensation cost for stock-based compensation using the intrinsic-value method of accounting prescribed by Accounting Principles Board (APB) Opinion No. 25, Accounting for Stock Issued to Employees.  The Company has elected to continue to apply the provisions of APB 25 and provide pro forma footnote disclosures required by SFAS No. 123 as applicable.  The pro forma footnote disclosures required by SFAS No. 123 are not applicable during the periods presented as no options were granted or vested during the periods presented.

 

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This excerpt taken from the NCEM 10-Q filed Dec 13, 2005.
Stock-Based Compensation – For stock options granted to employees, the Company utilizes the footnote disclosure provisions of Statement of Financial Accounting Standards (SFAS) No. 123, Accounting for Stock-Based Compensation.  SFAS No. 123 encourages entities to adopt a fair-value based method of accounting for stock options or similar equity instruments.  However, it also allows an entity to continue measuring compensation cost for stock-based compensation using the intrinsic-value method of accounting prescribed by Accounting Principles Board (APB) Opinion No. 25, Accounting for Stock Issued to Employees.  The Company has elected to continue to apply the provisions of APB 25 and provide pro forma footnote disclosures required by SFAS No. 123 as applicable.  The pro forma footnote disclosures required by SFAS No. 123 are not applicable during the periods presented as no options were granted or vested during the periods presented.

 

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