Equity-based Compensation Plans

6 Months Ended

Jun. 30, 2020

Equity-based Compensation Plans

Equity-based Compensation Plans

16. Equity-based Compensation Plans

The following table summarizes the equity-based compensation that has been included in the following line items within the consolidated statements of operations during:

	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
($ in thousands)	2020		2019		2020		2019
Equity-based compensation expense:
Costs applicable to revenue	$	191	$	208	$	347	$	415
Selling, general, and administrative		3,991		3,655		7,147		6,164
Total equity-based compensation expense	$	4,182	$	3,863	$	7,494	$	6,579

The following table summarizes stock option activity for the six months ended June 30, 2020:

	Stock Options
	(in thousands)
Outstanding at December 31, 2019		745
Exercised		(7)
Forfeited		(40)
Outstanding at June 30, 2020		698
Options exercisable at June 30, 2020		516

The following table summarizes restricted stock unit activity for the six months ended June 30, 2020:

	Restricted
	Stock Units
	(in thousands)
Outstanding at December 31, 2019		1,806
Granted		60
Vested		(199)
Forfeited		(153)
Outstanding at June 30, 2020		1,514

In June 2020, the Company entered into a consulting agreement with Melvin Flanigan that became effective after his resignation as the Company’s Chief Financial Officer and Secretary on June 30, 2020. Prior to Mr. Flanigan’s resignation from his employment with the Company, he was previously granted awards of (a) 62,500 restricted stock units (“RSUs”) on January 21, 2019 (the “First Award”), and (b) 60,000 RSUs on

November 12, 2019 (the “Second Award”) pursuant to the Company’s 2016 Incentive Award Plan. The consulting agreement provides, among other things, that: (i) the remaining unvested 41,667 RSUs held by Mr. Flanigan pursuant to the First Award will vest on January 1, 2021, provided that the consulting agreement has not been terminated prior to December 31, 2020, and (ii) 20,000 unvested RSUs held by Mr. Flanigan pursuant to the Second Award that are scheduled to vest on November 15, 2020 will vest on such date, provided that the Consulting Agreement has not been terminated prior to such date. This modification resulted in an incremental equity-based compensation charge of $0.6 million during the three months ended June 30, 2020 and the remaining equity-based compensation of $0.7 million relating to the modified RSUs will be recorded over the remaining service period, net of forfeitures, through December 31, 2020.

In July 2020, the Company granted 2.4 million RSUs to employees with an aggregate grant date fair value of $78.5 million, which will be recognized, net of forfeitures, through August 2025.