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OPTIONS AND AWARDS (Tables)

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Total share-based compensation expense for all of the Plans for the three months ended March 31, 2020 and 2019:


	Three Months Ended March 31,
	2020		2019
Prior to the Spin-Off:
Total share-based compensation	$	—	$	619
Following the Spin-Off:
Share-based compensation expense related to stock options	289		—
Share-based compensation expense related to Restricted Stock	1,543		—
Share-based compensation expense related to Restricted Stock to non-employee directors	124		—
Total share-based compensation	$	1,956	$	619

Stock options granted fair value assumptions

The fair value of each option is estimated on the grant date using a Black-Scholes option-pricing model with the following weighted average assumptions for stock options granted after the Spin-Off:


Grant Year	Options Granted	Risk-Free Interest Rate		Expected Life^(a)	Expected Volatility^(b)		Dividend Yield
2020	169	0.7	%	6.5	35.8	%	—	%


(a)						Under the midpoint method, the expected option life is the midpoint between the contractual option life and the average vesting period for the options being granted. This resulted in an expected option life of 6.5 years for the options granted.
(b)						Because the Company’s equity shares have been traded for a relatively short period of time, expected volatility assumption was based on the volatility of related industry stocks.

Stock option grant date exercise price and fair value

For the three months ended March 31, 2020, the following represents the exercise price and fair value displayed at grant date for stock option grants:


Grant Year	Granted	Weighted Average Exercise Price		Weighted Average Fair Value of Options
2020	169	$	18.22	$	9.21

Employee stock option activity

The following table represents the employee stock option activity during the three months ended March 31, 2020:


	Number of Options Outstanding	Weighted Average Exercise Price		Number of Options Vested	Weighted Average Exercise Price of Options Vested




December 31, 2019	1,573	$	9.71	607	$	4.80
Granted	169	18.22
Exercised	(38)	3.59

March 31, 2020	1,704	$	10.69	592	$	4.94

Summary of non-vested restricted stock awards

A summary of the status of Pennant’s non-vested Restricted Stock, and changes during the period ended March 31, 2020, is presented below:


	Non-Vested Restricted Stock	Weighted Average Grant Date Fair Value
December 31, 2019	1,793	$	14.44
Granted	5	27.45
Vested	(22)	12.81
Forfeited	(1)	9.18
March 31, 2020	1,775	$	14.49