EQUITY

3 Months Ended

Mar. 31, 2020

EQUITY

EQUITY

9. EQUITY

Exchange rights

Each Focus LLC common unit, together with a corresponding share of the Company’s Class B common stock, and Focus LLC incentive unit (after conversion into a number of Focus LLC common units taking into account the then-current value of the common units and such incentive unit’s aggregate hurdle amount) is exchangeable, pursuant to the terms and subject to the conditions set forth in the Operating Agreement, for one share of the Company’s Class A common stock, or, if either the Company or Focus LLC so elects, cash.

In March 2020, the Company issued an aggregate of 383,001 shares of Class A common stock and retired 316,370 shares of Class B common stock and 162,871 incentive units in Focus LLC and acquired 383,001 common units in Focus LLC, in each case as part of the regular quarterly exchanges offered to holders of units in Focus LLC.

Stock Options, Unvested Class A Common Stock and Restricted Stock Units

The following table provides information relating to the changes in the Company’s stock options during the three months ended March 31, 2020:

	Stock	Weighted Average
	Options	Exercise Price
Outstanding—January 1, 2020	1,832,966	$	30.42
Granted	—		—
Exercised	(2,713)		28.50
Forfeited	(12,941)		28.50
Outstanding—March 31, 2020	1,817,312		30.43
Vested—March 31, 2020	702,342		32.03

The following table provides information relating to the changes in the Company’s unvested Class A common stock during the three months ended March 31, 2020:

		Weighted
		Average
	Unvested Class A	Grant Date
	Common Stock	Fair Value
Outstanding—January 1, 2020	53,293		33.00
Granted	—		—
Forfeited	—		—
Vested	—		—
Outstanding—March 31, 2020	53,293		33.00

The following table provides information relating to the changes in the Company’s restricted stock units during the three months ended March 31, 2020:

		Weighted
		Average
	Restricted Stock	Grant Date
	Units	Fair Value
Outstanding—January 1, 2020	98,061	$	27.90
Granted	—		—
Forfeited	(4,660)		27.90
Vested	—		—
Outstanding—March 31, 2020	93,401		27.90

The Company recognized $902 of non-cash equity compensation expense in relation to the stock options and unvested Class A common stock during the three months ended March 31, 2019.

The Company recognized $1,187 of non-cash equity compensation expense in relation to the stock options, unvested Class A common stock and restricted stock units during the three months ended March 31, 2020.

Focus LLC Incentive Units

The following table provides information relating to the changes in Focus LLC incentive units during the three months ended March 31, 2020:

		Weighted Average
	Incentive Units	Hurdle Price
Outstanding—January 1, 2020	19,754,450	$	21.59
Granted	—		—
Exchanged	(162,871)		16.69
Forfeited	(221,651)		24.67
Outstanding—March 31, 2020	19,369,928		21.60
Vested—March 31, 2020	10,037,850		15.31

Incentive units outstanding and vested at March 31, 2020 were as follows:

	Number	Vested Incentive
Hurdle Rates	Outstanding	Units
$1.42	175,421	175,421
5.50	97,798	97,798
6.00	56,702	56,702
7.00	482,545	482,545
9.00	1,984,779	1,984,779
11.00	1,090,941	1,090,941
12.00	520,000	520,000
13.00	831,416	831,416
14.00	30,205	30,205
16.00	168,552	168,552
17.00	44,009	36,509
19.00	865,633	865,633
21.00	3,893,000	2,393,000
22.00	1,202,369	608,162
23.00	524,828	262,414
26.26	25,000	—
27.00	29,484	14,742
27.90	2,051,131	—
28.50	1,596,115	399,031
33.00	3,670,000	20,000
36.64	30,000	—
	19,369,928	10,037,850

The Company recorded $3,019 and $3,847 of non-cash equity compensation expense for incentive units during the three months ended March 31, 2019 and 2020, respectively.