Stock-Based Compensation

9 Months Ended

Sep. 30, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

Note 6.  Stock-Based Compensation

Incentive Plan

In December 2014, the Company’s stockholders approved and adopted, effective on December 19, 2014, the 2014 Long-Term Incentive Plan (the “2014 Plan”), which remains in effect until December 18, 2024.  In October 2015, the 2014 Plan was amended to increase the number of shares of the Company’s common stock authorized to be issued.  Under the 2014 Plan, the board of directors is authorized to grant stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance units, performance bonuses, stock awards and other incentive awards to the Company’s employees or those of its subsidiaries or affiliates as well as persons rendering consulting or advisory services and non-employee directors, subject to the conditions set forth in the 2014 Plan.  

The 2014 Plan currently provides that a maximum of 1,500,000 shares of the Company’s common stock may be issued in conjunction with awards granted under the 2014 Plan.  Awards that are forfeited or awards settled in cash are available for future issuance under the 2014 Plan.  As of September 30, 2016, 727,500 shares of common stock remained available for issuance under the 2014 Plan.

The Company accounts for stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation.  The guidance requires that all stock-based payments to employees and directors, including grants of restricted stock units, to be recognized in the financial statements based on their fair values.

Restricted Stock Units

Restricted stock units (“RSUs”) represents a contingent right to receive one share of the Company’s common stock and vest upon satisfaction of the requisite service conditions.  Prior to the RSUs vesting, recipients have no ownership interest in the Company’s common stock, no rights to vote and no rights to receive any dividends. The RSUs grant date fair values are based on the Company’s closing common stock price at the date of grant. Expense is recognized on a straight-line basis over the requisite service period of the entire award ensuring compensation cost recognized is consistent with the number of awards vested. Forfeitures are accounted for as they occur through reversal of the previously recognized expense on the awards that were forfeited during the period.

During the nine months ended September 30, 2016, the Company granted 772,500 RSUs with a weighted average grant date fair value of $12.55. The RSUs vest over a 19 or 34 month period with one-third of the award vesting at the end of either seven or 10 months and the remaining two-thirds vesting monthly thereafter. As of September 30, 2016, all 772,500 RSUs were unvested.

For the three and nine months ended September 30, 2016, the Company recognized $1.3 million and $1.9 million, respectively, of stock-based compensation expense. There was no stock-based compensation expense recognized for the comparable periods in 2015.  At September 30, 2016, the Company had $7.8 million of unrecognized compensation expense related to unvested RSUs to be recognized over a weighted-average period of 1.4 years.