Stock-Based Compensation

9 Months Ended

Sep. 30, 2016

Stock-Based Compensation [Abstract]

Stock-Based Compensation

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 $412,000 and $136,000 of stock-based compensation expense for the three months ended September 30, 2016, and September 30, 2015, respectively, and recognized $900,000 and $407,000 of stock-based compensation expense for the nine months ended September 30, 2016, and September 30, 2015, respectively.

In the nine months ended September 30, 2016, the Company granted 1,322,500 performance-based restricted stock units ("RSUs") with an aggregate fair value of $1.9 million.  In the three months ended September 30, 2016, the Company granted 1,162,500 performance-based RSUs with an aggregate fair value of $1.6 million.  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.

The performance-based RSUs granted during 2016 include 450,000 RSUs, which were canceled and reissued in accordance with the Chief Executive Officer's amended employment agreement dated July 1, 2016 and approved by the Board of Directors.  The aggregate fair value of the RSUs reissued totaled $469,000.

Additionally, on July 1, 2016, the Board of Directors approved an amendment to the performance-based RSU agreements with other employees, which reduced the time period from 90 to 30 consecutive trading days during which the volume weighted-average price ("VWAP") target must be attained in order for the RSUs to vest. This change resulted in an increase in the fair value of the RSUs granted of approximately $250,000, which will be expensed ratably over the remaining requisite service period.

In the three and nine months ended September 30, 2016, the Company granted 70,000 and 204,824 time-based RSUs with an aggregate fair value of $172,300 and $471,650, respectively.  The fair value of the RSUs is expensed ratably over the requisite service period.

The Company granted no new options and 40,000 stock options for the three and nine months ended September 30, 2016, respectively.  The fair value of the options granted for the nine months ended September 30, 2016 was $46,000. The Company granted no new options and 60,000 stock options for the three and nine months ended September 30, 2015, respectively.  The fair value of the options granted for the nine months ended September 30, 2015 was $48,000.