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STOCK-BASED COMPENSATION
6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
 
For the three and six months ended June 30, 2020 and 2019, stock-based compensation expense was reflected in the accompanying Condensed Consolidated Statements of Operations as follows: 
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Patient care costs$171  $164  $383  $348  
General and administrative1,346  687  3,857  1,904  
Total stock-based compensation before tax$1,517  $851  $4,240  $2,252  
 
Stock Options
 
On April 7, 2016, the Company approved the 2016 Omnibus Incentive Plan (the “2016 Plan”). The 2016 Plan authorized the Company to issue options and other awards to directors, officers, employees, consultants and advisors to purchase up to a total of 4,000,000 shares of common stock. As of June 30, 2020, options to purchase an aggregate of 1,295,818 shares of common stock were available for future grants under the 2016 Plan. Additionally, there were stock options outstanding under previous stock option plans as of June 30, 2020.

 The assumptions used for options granted to acquire common stock during 2020 and the fair value at the date of grant under the 2016 Plan are noted in the following table:
 Six Months Ended June 30, 2020
Expected Volatility60%
Weighted average expected terms in years6.0
Weighted average risk-free interest rate0.94%
Expected annual dividend yield—%
Weighted average grant-date fair value$4.17

Information concerning options activity for options under all option plans to acquire common stock is summarized as follows:
 Six Months Ended June 30, 2020
Number
of options
Weighted-average
exercise price
Options outstanding as of January 1, 20204,803,146  $12.29  
Granted96,765  7.58  
Exercised(900,180) 1.41  
Forfeited/Canceled(163,935) 9.76  
Options outstanding as of June 30, 20203,835,796  $14.83  
Vested and expected to vest as of June 30, 20203,835,796  $14.83  
Exercisable as of June 30, 20202,393,293  $13.11  

Restricted Stock Awards

Employees and directors are eligible to receive grants of restricted stock, which entitle the holder to shares of common stock as the awards vest. The Company determines stock-based compensation expense using the fair value method. The fair value of restricted stock is equal to the closing sale price of the Company’s common stock on the date of grant.

In March 2018, the Company granted approximately 95,000 performance-based restricted stock awards to certain executives, with a weighted average grant date fair value per share of $22.33. These awards will vest at the end of the three-year
service period and the quantity of awards that vest is dependent upon the Company’s achievement of defined performance metrics. The Company has determined that certain of the performance conditions for these awards have not been achieved as a result of the Restatement and the Company’s operating performance during the applicable periods, but that the remaining performance conditions are achieved but not vested as of June 30, 2020.

In December 2019, the Company granted approximately 51,500 performance-based restricted stock awards to certain executives, with a weighted average grant date fair value per share of $10.19. These awards will vest over the three-year service period, and the quantity of awards that vest is dependent upon the Company’s achievement of defined performance metrics. The Company has determined that certain of the performance conditions for these awards will not be achieved as a result of the Company’s operating performance during the applicable periods, but that the remaining performance conditions are probable of achievement as of June 30, 2020.

In March 2020, the Company granted approximately 280,953 performance-based restricted stock awards to certain executives, with a weighted average grant date fair value per share of $7.58. These awards will vest over the two-year service period, and the quantity of awards that vest is dependent upon the Company’s achievement of a defined performance metric with multiple performance levels. The Company has determined that an amount between the threshold and target performance levels is probable of achievement and has expensed the awards to this extent as of June 30, 2020.

The Company issued 562,062 of restricted stock awards in March 2020 in addition to the performance-based restricted stock awards noted above.

As of June 30, 2020, a total of 1,022,599 shares of restricted stock were unvested and outstanding, which results in unamortized stock-based compensation of $5,180 to be recognized as stock-based compensation expense over the remaining weighted-average vesting period of 1.48 years.

A summary of restricted stock award activity is as follows: 
Six Months Ended June 30, 2020
Number of sharesWeighted-average grant date fair value per award
Unvested as of January 1, 2020579,283  $15.01  
Granted843,015  7.58  
Vested(223,196) 14.52  
Forfeited/Canceled(176,503) 9.75  
Unvested as of June 30, 20201,022,599  $9.41  

Special Dividends and Stock Option Modification

On April 26, 2016, the Company declared and paid a cash dividend to its pre-IPO stockholders equal to $1.30 per share, or $28,886 in the aggregate. In connection with the dividend, all employees with outstanding options had their option exercise price reduced and in some cases were awarded a future dividend equivalent payment, which was paid on vested options and becomes due upon vesting for unvested options. Additionally, in connection with the cash dividend, through June 30, 2020, the Company has made payments equal to $1.30 per share, or $5,396 in the aggregate, to option holders, and, in the case of some performance and market options, a future payment totaling $1,235 will be due upon vesting.

In March 2020, the Company entered into a Transition Services Agreement with an executive, which included terms to modify the vesting conditions of outstanding awards. These modifications are treated as an option modification and the Company accounted for the option modification under ASC Topic 718, Compensation - Stock Compensation. As a result of these modifications, the Company recognized $(48) and $327 of additional stock compensation expense during the three and six months ended June 30, 2020, respectively.