STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Under our 2015 Stock Incentive Plan (the "2015 Plan"), 6,000,000 shares of Class A common stock are authorized for grants of stock options, restricted stock units ("RSU"), restricted stock and stock appreciation rights to employees and non-employee directors. In addition, any shares available under our Amended and Restated Stock Incentive Plan (which expired on June 1, 2015), including in respect of any awards that expire, terminate or are forfeited, will be available for awards under the 2015 Plan. Under the 2015 Plan, awards are made to employees and directors at the discretion of the Compensation Committee. Any awards previously issued under the Amended and Restated Stock Incentive Plan will continue to be governed by the terms of that plan.

For the three and nine months ended September 30, 2016 and 2015, we recognized charges for stock-based compensation of US$ 0.7 million and US$ 2.5 million; and US$ 0.6 million and US$ 1.5 million, respectively, presented as a component of selling, general and administrative expenses in our condensed consolidated statements of operations and comprehensive income / loss.

Stock Options

A summary of option activity for the nine months ended September 30, 2016 is presented below:



	Shares		Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding at December 31, 2015	1,666,000		$	3.53	9.07	$	640
Granted	411,392		2.46
Expired	(63,000	)	32.62
Outstanding at September 30, 2016	2,014,392		$	2.40	8.82	$	32
Vested and expected to vest	2,014,392		2.40		8.82	32
Exercisable at September 30, 2016	403,000		$	2.69	8.61	$	8

The fair value of stock options is estimated on the grant date using the Black-Scholes option-pricing model and recognized ratably over the requisite service period. The aggregate intrinsic value (the difference between the stock price on the last day of trading of the third quarter of September 30, 2016 and the exercise prices multiplied by the number of in-the-money options) represents the total intrinsic value that would have been received by the option holders had they exercised all in-the-money options as at September 30, 2016. This amount changes based on the fair value of our Class A common stock. As at September 30, 2016, there was US$ 2.2 million unrecognized compensation expense related to stock options which is expected to be recognized over a weighted-average period of 2.9 years.

Restricted Stock Units

Each RSU represents a right to receive one share of Class A common stock according to its vesting conditions. The majority of RSU issued have time-based vesting conditions and vest ratably over one to four years from the date of grant. Vesting of RSU with performance-based vesting conditions ("PRSU") is contingent on the achievement of cumulative OIBDA and unlevered free cash flow targets over a multi-year period. Upon vesting, shares of Class A common stock are issued from authorized but unissued shares. Holders of RSU and PRSU awards are not entitled to receive cash dividend equivalents and are not entitled to vote. The grant date fair values of RSU and PRSU are calculated as the closing price of our Class A common shares on the date of grant.

The following table summarizes information about unvested RSU and PRSU as at September 30, 2016:



	Number of Shares / Units		Weighted Average Grant Date Fair Value
Unvested at December 31, 2015	2,554,597		$	2.72
Granted	705,166		2.41
Vested	(626,126	)	2.83
Unvested at September 30, 2016	2,633,637		$	2.61

As at September 30, 2016, the intrinsic value of unvested RSUs was US$ 6.1 million. Total unrecognized compensation cost related to unvested RSUs as at September 30, 2016 was US$ 3.6 million and is expected to be recognized over a weighted-average period of 2.4 years.