Stock-based compensation expense

3 Months Ended

Mar. 31, 2016

Stock-based compensation expense and assumptions

Stock-based compensation expense and assumptions

5. Stock-based compensation expense

Stock-based compensation expense is measured at the grant date based on fair value, and recognized as an expense over the requisite service period, net of an estimated forfeiture rate.

During the first quarter of 2016, 0.8 million stock options were granted to certain employees of the Company, with a grant fair value of $0.7 million. The actual number of shares that will be issued upon exercise of the options is subject to the achievement of service-based vesting conditions.  Stock-based compensation expense is recorded on a straight line basis from the date of the grant over the requisite service period of 36 months. 

The following summarizes stock-based compensation expense recognized by income statement classification:

	Three Months Ended
	March 31,
	2016		2015
Processing and service costs	$	48,806	$	50,497
Selling, general and administrative expenses		555,162		182,965
Total stock-based compensation expense	$	603,968	$	233,462

The following summarizes stock-based compensation expense recognized by type:

	Three Months Ended
	March 31,
	2016		2015
Stock options	$	281,396	$	131,272
Restricted stock awards		322,572		102,190
Total stock-based compensation expense	$	603,968	$	233,462