Stock-Based Compensation

9 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

16. Stock-Based Compensation

The Company’s stockholders approved the Inspired Entertainment, Inc. 2016 Long-Term Incentive Plan (the “2016 Incentive Plan”) in connection with the Merger as of the Closing Date. Under the 2016 Incentive Plan, the Compensation Committee is authorized to grant awards to employees, officers, directors and other service providers of the Company and its affiliates and to determine the number and types of such awards and the terms, conditions, vesting and other limitations applicable to each such award. The 2016 Incentive Plan provides for the issuance of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards (including cash-based performance awards), and other cash-based or stock-based awards. As of June 30, 2017, there were 2,778,818 shares authorized for issuance under the 2016 Incentive Plan, 2,768,776 shares subject to outstanding awards and 10,042 shares available for issuance. 

On December 29, 2016, the Company granted 936,173 shares of restricted stock and 722,466 RSUs under the 2016 Incentive Plan to certain members of management that contain both market and service conditions. The weighted average fair value of the common stock on the date of grant was $5.63 per share. The grant date fair value of the awards is being recognized as compensation expense over a three-year vesting period. The aggregate grant date fair value of the restricted stock amounted to $5,271, of which the Company recorded $432 and $893 as compensation expense during the three and nine months ended June 30, 2017, respectively. The aggregate grant date fair value of the RSUs amounted to $4,067, of which the Company recorded $339 and $689 as compensation expense during the three and nine months ended June 30, 2017, respectively.

On January 3, 2017, the Company granted 1,076,272 shares of restricted stock under the 2016 Incentive Plan to certain members of management that contain both market and service conditions. The weighted average fair value of the common stock on the date of grant was $5.51 per share. The aggregate grant date fair value of the awards amounted to $5,927, which is being recognized as compensation expense over a three-year vesting period. The Company recorded $471 and $988 of compensation expense during the three and nine months ended June 30, 2017, respectively.

On May 9, 2017, the Company granted 10,000 RSUs under the 2016 Incentive Plan to several employees which contain both market and service conditions. The weighted average fair value of the common stock on the date of grant was $5.51 per share. The grant date fair value of the awards is being recognized as compensation expense over a three-year vesting period. The aggregate grant date fair value of the RSUs amounted to $55, of which the Company recorded $3 as compensation expense during the three and nine months ended June 30, 2017. 

During May 2017, the Company granted 23,865 RSUs under the 2016 Incentive Plan to members of the Company’s Board of Directors. One-half of the RSUs vested on the date of grant, with the remaining RSUs vesting July 1, 2017 and October 1, 2017. The weighted average fair value of the common stock on the date of grant was $10.25 and $12.25 per share, respectively. The grant date fair value of the awards is being recognized as compensation expense over the vesting period. The aggregate grant date fair value of the RSUs amounted to $249, of which the Company recorded $114 as compensation expense during the three and nine months ended June 30, 2017. 

Stock-based compensation is recognized as an expense on a straight-line basis over the requisite service period, which is generally the vesting period. As of June 30, 2017, there were 2,757,680 shares of non-vested restricted stock and RSUs outstanding.