Shareholder's Equity and Stock-Based Compensation

3 Months Ended

Mar. 31, 2018

Shareholder's Equity and Stock-Based Compensation

(9) Shareholder’s Equity and Stock-Based Compensation

The Company granted 504,500 awards to employees under the 2016 Incentive Award Plan during the three months ended March 31, 2018, consisting of 406,500 stock option awards and 98,000 restricted stock units (“RSU”), all vesting after four years. The Company granted 700,050 stock options, vesting after four years, to employees under the 2016 Incentive Award Plan during the three months ended March 31, 2017.

Award Activity

The following table sets forth the Company’s stock option activity:

	Three Months Ended March 31, 2018
				Weighted Average
	Stock Options			Exercise Price
Outstanding - beginning of period		2,782,868		$	20.73
Granted		406,500		$	32.05
Exercised		(38,161	)	$	14.83
Forfeited/Expired		(62,361	)	$	19.62
Outstanding - end of period		3,088,846		$	22.32

Exercisable - end of period		957,504		$	15.54

The following table sets forth the Company’s RSA/RSU activity:

	Three Months Ended
	March 31, 2018
	Shares/Units
Outstanding and unvested - beginning of period		183,629
Granted		98,000
Vested		-
Forfeited		(2,000	)
Outstanding and unvested - end of period		279,629

Cumulative vested shares - end of period		1,884,287

Stock-based compensation expense recognized in the condensed consolidated statements of operations related to all outstanding stock based compensation awards is summarized below (in thousands):

	Three Months Ended March 31,
	2018		2017
Total direct costs	$	843	$	542
Selling, general and administrative		624		492
Total stock-based compensation expense	$	1,467	$	1,034