Stock-Based Compensation

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

The grant of restricted stock units with respective weighted-average fair value per share for the three months ended March 31, 2020, and 2019, is summarized as follows:


	For the Three Months Ended
	March 31, 2020		March 31, 2019

Granted	620		643
Weighted average fair value per share	$	7.50	$	9.82

The fair value of the restricted stock units granted is based on the closing share price of the Company’s common stock on the date of grant. The restricted stock units vest annually on a straight-line basis over a nine-month (annual board of directors’ grant) to a three-year vesting term, depending on the terms of the individual grant.

As part of the 620 and 643 restricted stock units granted during the three months ended March 31, 2020, and 2019, the Company granted 417 and 287 restricted stock units to certain executives and employees of the Company where vesting is linked to specific performance criterion. These performance-based restricted stock units only vest upon the (1) Company’s achievement of specified thresholds of net sales, Adjusted EBITDA, and other specific net sales and profitability goals from 2020 to 2022, and (2) continued employment through the applicable vesting date.

The estimated fair value of the restricted stock units is recognized on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the award. The following are stock-based compensation expenses related to restricted stock units recorded for the three months ended March 31, 2020, and 2019, which are included as a component of selling, general, and administrative expense on the condensed consolidated statement of operations:


	For the Three Months Ended
	March 31, 2020		March 31, 2019

Stock-based compensation expense related to restricted stock units	$	1,294	$	1,185

Certain Company employees have elected to receive a net amount of shares upon the vesting of restricted stock unit grants in exchange for the Company paying up to the maximum statutory withholding amount of the employees’ tax liabilities for the fair value of the award on the vesting date. These elections have resulted in the Company recording $314 and $782 reflected as a reduction of additional paid-in capital during the three months ended March 31, 2020, and 2019, respectively. All of the $314 recorded as a reduction of additional paid-in capital was paid as of March 31, 2020.