• Filing Date: 2018-05-10
  • Form Type: 10-Q
  • Description: Quarterly report
v3.8.0.1
Stock-based Compensation
3 Months Ended
Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-based Compensation
Stock-based Compensation

On June 27, 2017, the shareholders of the Company voted to amend, and the Company amended, the Amended and Restated 2010 Omnibus Incentive Plan (as amended, the "Omnibus Plan") to increase the number of shares authorized for issuance thereunder by 9,900,000 shares. Awards under the Omnibus Plan may consist of incentive awards, stock options, stock appreciation rights, performance shares, performance units, and shares of common stock, restricted stock, restricted stock units or other stock-based awards as determined by the compensation committee of the Company's board of directors. The Omnibus Plan has an aggregate of 12,600,000 shares of common stock authorized for issuance thereunder, subject to adjustment as provided therein.


Options

As of December 31, 2017, all options to purchase shares of common stock issued by the Company were fully vested. There was no stock-based compensation expense relating to stock options granted under the Omnibus Plan during the three months ended March 31, 2018 and 2017, respectively.

As of March 31, 2018, options to purchase 239,000 shares of common stock were outstanding under the Omnibus Plan at a weighted average exercise price of $6.94 per share. The following table presents the activity of the Company’s outstanding stock options of common stock for the three months ended March 31, 2018:
Common Stock Options
 
Number of
Shares
 
Weighted
Average Exercise Price
per Share
 
Weighted
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic
Value
Options outstanding, January 1, 2018
 
542,102

 
$
8.75

 
1.33

 
$

Options granted
 

 

 

 


Options exercised
 

 

 

 


Options forfeited
 
(303,102
)
 
$
10.18

 

 


Options expired
 

 

 

 


Options outstanding, March 31, 2018
 
239,000

 
$
6.94

 
2.19

 
$

Exercisable at March 31, 2018
 
239,000

 
$
6.94

 
2.19

 


Unvested at March 31, 2018
 

 

 

 
$



As of March 31, 2018, all outstanding stock options had an exercise price above the fair market value of the common stock on that date. There are no remaining unamortized amounts to be recognized on these options.


Restricted Stock

The Company incurred additional stock-based compensation expense of approximately $73,000 and $139,000 relating to restricted stock granted to its board of directors and certain employees during the three months ended March 31, 2018 and 2017, respectively.

During the year ended December 31, 2016, the Company granted 65,212 shares of restricted stock to its directors under the Omnibus Plan, which are subject to a one year vesting period that commenced on the date of grant. The fair value of the restricted stock was valued at approximately $255,000 based on the closing price of the Company’s shares on the date prior to the grant date. The Company incurred stock-based compensation expense related to these 65,212 shares of restricted stock of approximately $0 and $60,000 during the three months ended March 31, 2018 and 2017, respectively. The 65,212 shares of restricted stock vested during the year ended December 31, 2017.

During the year ended December 31, 2016, the Company granted 200,000 shares of restricted stock units to certain employees under the Omnibus Plan, which are subject to a two year vesting period that commenced on the date of grant. The fair value of the unvested restricted stock was valued at approximately $674,000 based on the closing price of the Company’s shares on the day prior to the grant date. The Company incurred stock-based compensation income due to forfeitures of approximately $18,000 and expense of approximately $79,000 related to these 200,000 shares of restricted stock during the three months ended March 31, 2018 and 2017, respectively. Approximately 20,000 shares of restricted stock were forfeited during the three months ended March 31, 2018, with 74,000 remaining unvested at March 31, 2018.

During the year ended December 31, 2017, the Company granted 51,132 shares of restricted stock to its directors under the Omnibus Plan, which are subject to a one year vesting period that commenced on the date of grant. The fair value of the unvested restricted stock was valued at approximately $17,000 based on the closing price of the Company’s shares on the date prior to the grant date. The Company incurred stock-based compensation expense related to these 51,132 shares of restricted stock of approximately $0 during the three months ended March 31, 2018. Approximately 42,610 shares of restricted stock vested during the year ended December 31, 2017 with 8,522 pending vesting at March 31, 2018.
During the year ended December 31, 2017, the Company granted 2,000,000 shares of restricted stock units to certain employees under the Omnibus Plan, which are subject to a two year vesting period that commenced on the date of grant. The fair value of the unvested restricted stock was valued at approximately $745,000 based on the closing price of the Company's shares on the day prior to the grant date. The Company incurred stock-based compensation expense of approximately $90,000 related to these 2,000,000 shares of restricted stock during the three months ended March 31, 2018. All 2,000,000 shares remained unvested at March 31, 2018.
During the three months ended March 31, 2018, the Company granted 100,000 shares of restricted stock units to certain employees under the Omnibus Plan, with 50,000 shares and 50,000 shares subject to a two and three year vesting period that commenced on the date of grant, respectively. The fair value of the unvested restricted stock was valued at approximately $39,000 based on the closing price of the Company's shares on the day prior to the grant date. The Company incurred stock-based compensation expense of approximately $1,000 related to these 100,000 shares of restricted stock during the three months ended March 31, 2018. All 100,000 shares remained unvested at March 31, 2018.

The following table presents the activity of the Company’s unvested shares of restricted stock for the three months ended March 31, 2018:
Common Unvested Shares
Number of
Shares
Outstanding January 1, 2018
2,102,522

Granted
100,000

Vested

Forfeited
(20,000
)
Outstanding March 31, 2018
2,182,522



The aggregate intrinsic value of the awards of 8,522, 74,000, 100,000 and 2,000,000 shares is $3,000, $24,000, $38,000, and $760,000, respectively and the remaining weighted average life of these awards is 0.32 years, 0.23 years, 2.43 years, and 1.63 years respectively as of March 31, 2018. As of March 31, 2018, a total of $601,000 in stock based compensation remained unrecognized.