Stock-Based Compensation

6 Months Ended

Jun. 30, 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 $241,000 and $137,000 of stock-based compensation expense for the three months ended June 30, 2016 and June 30, 2015, respectively, under the fair value method and recognized $488,000 and $271,000 of stock-based compensation expense for the six months ended June 30, 2016 and June 30, 2015, respectively.

In the six months ended June 30, 2016, the Company granted 160,000 performance-based restricted stock units ("RSUs") with an aggregate fair value of $282,000. There were no new performance based RSU grants in the three months ended June 30, 2016. 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 five years.

In the three and six months ended June 30, 2016, the Company granted 5,000 and 134,824 time-based RSUs with an aggregate fair value of $13,350 and $299,350, respectively. The RSUs will vest quarterly over the next twelve quarters. The fair value of the RSUs is expensed ratably over the requisite service period, which ranges between one and five years.

The Company granted no new options and 40,000 stock options for the three and six months ended June 30, 2016, respectively. The fair value of the options granted for the six months ended June 30, 2016, was $46,000. The Company granted no new options and 50,000 stock options for the three and six months ended June 30, 2015, respectively. The fair value of the granted options at the grant date was $40,000.