Stock-Based Compensation

3 Months Ended

Mar. 31, 2017

11.	Stock-Based Compensation

The Company recognizes share-based payment expense for all equity-based awards issued to employees, directors and non-employees that are expected to vest. Share-based payment expense is based on the fair value of awards as of the grant date. The Company recognized $614,000 and $247,000 of share-based payment expense related to equity awards for the three months ended March 31, 2017 and 2016, respectively, under the fair value method. Offsetting this expense during the three months ended March 31, 2017, was a reduction in the fair value of cash-settled RSUs totaling approximately $18,000.

During the three months ended March 31, 2017, the Company granted 223,802 time-based restricted stock units (RSUs) to employees with an aggregate fair value of $783,000, of which a portion will vest quarterly in equal amounts over the course of eight quarters and the remainder will vest annually in equal amounts over the course of three years. During the three months ended March 31, 2016, the Company granted 129,824 time-based RSUs to employees with an aggregate fair value of $286,000, which will vest quarterly in equal amounts over the course of eight quarters. The fair value of the time-based RSUs is expensed ratably over the requisite service period, which ranges from two to three years.

During the three months ended March 31, 2017, the Company did not grant performance-based RSUs. The Company granted 160,000 performance-based RSUs with an aggregate fair value of $282,000 during the three months ended March 31, 2016. These RSUs vest upon the achievement of specific performance measures. The fair value of the performance-based RSUs is expensed ratably over the requisite service period, which ranges between one and four years.

The Company did not grant stock options during the three months ended March 31, 2017 and granted 40,000 stock options for the three months ended March 31, 2016. The aggregate fair value of the granted options at the grant date was $46,000.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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