XML 27 R16.htm IDEA: XBRL DOCUMENT v3.20.2
STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
The grant of restricted stock units with respective weighted-average fair value per share for the three and nine months ended September 30, 2020, and 2019, is summarized as follows:
For the Three Months EndedFor the Nine Months Ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Units Granted338 75 1,065 718 
Weighted average fair value per share$2.98 $6.59 $5.66 $9.48 
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.
None of the the 338 and 75 restricted stock units granted during the three months ended September 30, 2020, and 2019, respectively, were related to performance-based restricted stock where vesting is linked to specific performance criterion. As part of the 1,065 and 718 restricted stock units granted during the nine months ended September 30, 2020, and 2019, respectively, 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, 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 and nine months ended September 30, 2020, and 2019, respectively, which are included as a component of selling, general, and administrative expense on the condensed consolidated statement of operations:
For the Three Months EndedFor the Nine Months Ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Stock-based compensation expense$1,326 $631 $3,930 $3,291 
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 $0 and $314, respectively, during the three and nine months ended September 30, 2020, and $41 and $887, respectively, during the three and nine months ended September 30, 2019, reflected as a reduction of additional paid-in capital. All of the $314 recorded as a reduction of additional paid-in capital was paid as of September 30, 2020. Of the $887 recorded as a reduction of additional paid-in capital, $39 was included in accrued wages and wage related expenses as of September 30, 2019.