The Company’s stock-based compensation is in accordance with the amended 2015 Incentive Compensation Plan (the “Plan”), pursuant to which the Compensation Committee of the Company is authorized to grant up to 5,150,000 shares to officers and employees of the Company, in the form of equity-based awards, including time or performance based options and restricted stock. In addition, the Company may grant cash-settled awards, including stock-appreciation rights (SARs) and phantom stock awards. As of December 31, 2018, there were 2,647,990 shares available for grant under the Plan.

Total stock-based compensation recorded by the Company for the year ended December 31, 2018, 2017, and 2016 for both equity and liability-classified awards was $2.9 million, $2.6 million, and $3.7 million respectively.

The following table summarizes the components of stock-based compensation expense in the consolidated statements of (loss) income for the year ended December 31, 2018, 2017, and 2016 were as follows:


	Year Ended Year Ended December 31, 2018		Year Ended Year Ended December 31, 2017		Year Ended Year Ended December 31, 2016
(in thousands)	Amount		Amount		Amount

Cost of sales	$	191	$	191	$	—
Selling, general, and administrative expenses	$	2,413	$	2,127	$	3,423
Research and development expenses	293		299		261
Total	$	2,897	$	2,617	$	3,684

During the year ended December 31, 2018 and December 31, 2017, the Company’s compensation committee approved time-based stock options to be granted to officers and employees of the Company, which vest ratably over three years. A summary of the status of the Company’s time-based stock options (“Options”) for the years ended December 31, 2018 and 2017 were as follows:


	Number of Share Underlying Awards	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (In thousands)
Outstanding at January 1, 2017	751,973	$	10.52	8.91	$	—
Granted	181,800	4.37		0	—
Exercised	—	—		0	—
Forfeited or expired	(6,875)	9.78		0	—
Outstanding at December 31, 2017	926,898	$	8.72	8.18	$	—
Exercisable at December 31, 2017	445,449	3.69		7.91	—
Vested and expected to vest at December 31, 2017	926,898	$	8.72	8.18	$	—

Outstanding at January 1, 2018	926,898	$	8.72	8.18	$	—
Granted	201,535	7.15		9.37	—
Exercised	—	—		0	—
Forfeited or expired	(146,109)	4.66		8.63	—
Outstanding at December 31, 2018	982,324	$	9.38	7.18	$	—
Exercisable at December 31, 2018	721,869	10.57		6.78	—
Vested and expected to vest at December 31, 2018	982,324	$	9.38	7.18	$	—

The fair value of each Option was estimated on the date of grant using the Hull-White or Black-Scholes option pricing models with the assumptions described below. For the periods indicated, since the Company has limited historical volatility information available, the expected volatility was based on actual volatility for comparable public companies projected over the expected terms of Options and the actual volatility for the Company since the Business Combination. The Company did not apply a forfeiture rate to the Options as there is not enough historical information available to estimate. The risk-free interest rate was based on the U.S. Treasury yield curve at the time of the grant over the expected term of the Options. The expected life for the Hull-White model was calculated as the average time to achieve the 2.0x strike exercise price in the simulation. The expected life for the Black-Scholes model was estimated using the simplified method.


	Year Ended December 31, 2018	Year Ended December 31, 2017
Weighted average grant date fair value	$3.54	$2.39
Risk-free interest rate	2.56%	2.08%
Expected life (years)	6.00	6.00
Estimated volatility factor	47.52%	57.14%
Expected dividends	None	None

During the year ended December 31, 2018 and December 31, 2017, the Company’s compensation committee approved time-based stock appreciation rights ("SARs") to be granted to officers and employees of the Company outside of the United States, which vest ratably over three years. A summary of the Company’s time-based SARs as of December 31, 2018 is as follows:


	Number of Awards	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (In thousands)
Outstanding at January 1, 2017	158,125	$	12.00	8.71	$	—
Granted	9,350	2.39		0	—
Exercised	—	—		0	—
Forfeited or expired	(91,850)	10.88		0	—
Outstanding at December 31, 2017	75,625	9.83		7.75	—
Exercisable at December 31, 2017	—	—		0	—
Vested and expected to vest at December 31, 2017	75,625	$	9.83	7.75	$	—

Outstanding at January 1, 2018	75,625	$	9.83	7.75	$	—
Granted	30,300	7.35		9.24	—
Exercised	—	—		0	—
Forfeited or expired	—	—		0	—
Outstanding at December 31, 2018	105,925	$	9.12	6.75	$	—
Exercisable at December 31, 2018	103,125	8.92		6.68	—
Vested and expected to vest at December 31, 2018	105,925	$	9.12	6.75	$	—

Holders of these SARs are entitled under the terms of the Plan to receive cash payments calculated based on the excess of the Company’s stock price over the target price in their award; consequently, these awards are accounted for as liability-type awards and the Company measures compensation cost based on their estimated fair value at each reporting date and the number of options expected to vest, net of estimated forfeitures, if any.

Upon issuance, the fair value of each SAR award was estimated using the Hull-White option pricing model with the assumptions described below. For the periods indicated, since the Company has limited historical volatility information available, the expected volatility was based on actual volatility for comparable public companies projected over the expected terms of SAR awards. The Company did not apply a forfeiture rate to the SAR awards as there is not enough historical information available to estimate. The risk-free interest rate was based on the U.S. Treasury yield curve at the time of the grant over the expected term of the SAR awards. The expected life was calculated as the average time to achieve the 2.0x strike exercise price in the simulation. Because the SARs are liability classified, they are revalued at each reporting date. The assumptions used to value the SARs as of their issuance dates and as of December 31, 2018 are presented below:


	As of December 31, 2018			As of December 31, 2017
Fair value of awards	$	0.29		$	2.21
Risk-free interest rate	2.47		%	2.22		%
Expected life (years)	3.34			3.95
Estimated volatility factor	48.22		%	54.5		%
Expected dividends	None			None

During the year ended December 31, 2018 and December 31, 2017, the Company’s compensation committee approved equity-classified performance-based restricted stock units (RSUs) and time based restricted stock to be granted to officers and employees of the Company, which vest ratably over three years. A summary of the Company’s restricted stock awards as of December 31, 2018 is as follows:


	Number of Shares	Weighted-Average Grant Date Fair Value
Non-vested Restricted Stock & RSUs at January 1, 2017	296,983	$	5.66
Granted	513,851	4.32
Vested	(63,744)	5.46
Forfeited or expired	(302,283)	6.26
Non-vested Restricted Stock & RSUs at December 31, 2017	444,807	$	5.35

Non-vested Restricted Stock & RSUs at January 1, 2018	444,807	$	5.35
Granted	554,699	7.06
Vested	(152,538)	5.30
Forfeited or expired	(178,272)	5.43
Non-vested Restricted Stock and RSUs at December 31, 2018	668,696	$	6.76

As of December 31, 2018, Management has concluded that it is not probable that the performance condition for the RSUs granted in 2015 and 2017 will be met and therefore no compensation is expected to be recognized for those RSUs; however, if it becomes probable that those performance conditions will be met, the Company could recognize up to $1.0 million. Unrecognized compensation expense for the unvested time-based restricted stock is $2.3 million, which is expected to be recognized over a weighted average period of 1.6 years.

During the year ended December 31, 2018 and December 31, 2017, the Company’s compensation committee approved phantom stock awards to be awarded to officers and employees of the Company located outside of the United States, which vest ratably over three years. These awards will be settled in cash upon vesting and are therefore liability-classified, requiring remeasurement at each balance sheet date. A summary of the Company’s Phantom Stock Awards as of December 31, 2018 is as follows:


	Number of Awards	Weighted-Average Grant Date Fair Value
Non-vested phantom stock awards at January 1, 2017	109,809	$	6.32
Granted	90,000	4.35
Vested	—	—
Forfeited or expired	(121,009)	6.34
Non-vested phantom stock awards at December 31, 2017	78,800	$	5.91

Non-vested phantom stock awards at January 1, 2018	78,800	$	5.91
Granted	65,450	7.35
Vested	(17,519)	4.70
Forfeited or expired	(14,548)	7.68
Non-vested phantom stock awards at December 31, 2018	112,183	$	6.71

As of December 31, 2018, Management concluded that it is not probable that the performance condition for the phantom shares issued in 2015 and 2016 will be met and therefore no compensation is expected to be recognized for those phantom shares; however, if it becomes probable that those performance conditions will be met, the Company could recognize up to $0.3 million of additional compensation expense. Unrecognized compensation expense for the unvested time-based phantom shares is $0.3 million, which is expected to be recognized over a weighted average period of 1.5 years.

On January 31, 2014, 20,125 founder shares were transferred to each of Boulevard’s three independent directors (“Director Shares”), adjusted for the effect of stock dividends in February 2014 (for a total of 60,375 founder shares). On March 13, 2014, the underwriters exercised a portion of the over-allotment option from the Public Offering, resulting in a portion of the Director

Shares being forfeited. As a result, the Director Shares were adjusted ratably resulting in each director holding 18,375 Director Shares (for a total of 55,125 Director Shares) at December 31, 2018.

The Director Shares were effectively subject to achievement of two performance conditions — the Company completing its initial public offering (IPO) and a business combination within 21 months of the IPO. Additionally, 25% (13,781 shares in the aggregate) are subject to forfeiture if the Company’s stock price does not trade at or above $13 for any 20 trading days within a 30 day period commencing on the Closing Date through July 31, 2020.

The grant date fair value of the Director Shares with performance conditions was estimated as of their deemed grant date of January 31, 2014. The aggregate fair value of the Director Shares of $0.4 million was recognized as an expense upon consummation of the Business Combination, at which point the performance conditions had been achieved.

Certain directors receive shares of restricted stock subject to the terms, provisions and restrictions of the 2015 Incentive Compensation Plan. The shares granted during the year ended December 31, 2018, and 2017, vest over a one year period on the one year anniversary of each holder's grant date, provided the Director is still serving as a director of the Company. Upon termination of directorship for any reason, the Director immediately forfeits any unvested shares without payment. A summary of the Company’s time-based restricted stock awarded to the Board of Directors for the year ended December 31, 2018 is as follows:


	Number of Shares	Weighted-Average Grant Date Fair Value
Non-vested time-based restricted stock at January 1, 2017	14,524	$	6.22
Granted	96,853	5.42
Vested	(104,115)	5.40
Forfeited or expired	—	—
Non-vested time-based restricted stock at December 31, 2017	7,262	$	5.48

Non-vested time-based restricted stock at January 1, 2018	7,262	$	5.48
Granted	85,890	6.75
Vested	(28,783)	5.40
Forfeited or expired	—	—
Non-vested time-based restricted stock at December 31, 2018	64,369	$	7.21