Stock-Based Compensation

3 Months Ended

Mar. 31, 2016

10.	Stock-Based Compensation

The Company recognizes compensation expense for all equity-based compensation awards issued to employees, directors and non-employees that are expected to vest. Compensation cost is based on the fair value of awards as of the grant date. The Company recognized $247,000 and $134,000 of stock-based compensation expense for the three months ended March 31, 2016 and March 31, 2015, respectively, under the fair value method.

During the three months ended March 31, 2016, the Company granted 160,000 performance-based restricted stock units ("RSUs") with an aggregate fair value of $282,000. The RSUs vest upon the achievement of specific performance measures. The fair value of the RSUs is expensed ratably over the requisite service period, which ranges between one and four years.

During the three months ended March 31, 2016, the Company also granted 129,824 time-based RSUs with an aggregate fair value of $286,000, which will vest quarterly in equal amounts over the course of the next eight quarters. The fair value of the RSUs is expensed ratably over the next eight quarters.

The Company granted 40,000 stock options for the three months ended March 31, 2016. The aggregate fair value of the options granted for the three months ended March 31, 2016 was $46,000. The Company granted 50,000 stock options for the three months ended March 31, 2015. The aggregate fair value of the granted options at the grant date was $40,000.