EQUITY

6 Months Ended

Jun. 30, 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.

In June 2020, the Company issued an aggregate of 282,347 shares of Class A common stock and retired 263,276 shares of Class B common stock and 35,000 incentive units in Focus LLC and acquired 282,347 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 six months ended June 30, 2020:

	Stock	Weighted Average
	Options	Exercise Price
Outstanding—January 1, 2020	1,832,966	$	30.42
Granted	—		—
Exercised	(5,878)		28.50
Forfeited	(21,817)		29.27
Outstanding—June 30, 2020	1,805,271		30.44
Vested—June 30, 2020	709,498		32.06

The following table provides information relating to the changes in the Company’s unvested Class A common stock during the six months ended June 30, 2020:

		Weighted
		Average
	Unvested Class A	Grant Date
	Common Stock	Fair Value
Outstanding—January 1, 2020	53,293	$	33.00
Forfeited	(834)		33.00
Vested	—		—
Outstanding—June 30, 2020	52,459		33.00

The following table provides information relating to the changes in the Company’s restricted stock units during the six months ended June 30, 2020:

		Weighted
		Average
	Restricted Stock	Grant Date
	Units	Fair Value
Outstanding—January 1, 2020	98,061	$	27.90
Granted	—		—
Forfeited	(7,707)		27.90
Vested	—		—
Outstanding—June 30, 2020	90,354		27.90

The Company recognized $1,158 and $2,060 of non-cash equity compensation expense in relation to the stock options and unvested Class A common stock during the three and six months ended June 30, 2019, respectively.

The Company recognized $1,343 and $2,530 of non-cash equity compensation expense in relation to the stock options, unvested Class A common stock and restricted stock units during the three and six months ended June 30, 2020, respectively.

Focus LLC Incentive Units

The following table provides information relating to the changes in Focus LLC incentive units during the six months ended June 30, 2020:

		Weighted Average
	Incentive Units	Hurdle Price
Outstanding—January 1, 2020	19,754,450	$	21.59
Granted	—		—
Exchanged	(197,871)		15.68
Forfeited	(221,651)		24.67
Outstanding—June 30, 2020	19,334,928		21.62
Vested—June 30, 2020	10,020,350		15.35

Incentive units outstanding and vested at June 30, 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	1,055,941	1,055,941
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	44,009
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	10,000
	19,334,928	10,020,350

The Company recorded $4,020 and $7,039 of non-cash equity compensation expense for incentive units during the three and six months ended June 30, 2019, respectively.

The Company recorded $3,905 and $7,752 of non-cash equity compensation expense for incentive units during the three and six months ended June 30, 2020, respectively.