Stock-Based Compensation

6 Months Ended

Jun. 30, 2017

Stock-Based Compensation [Abstract]

Stock-Based Compensation

11. 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 $0.6 million and $0.2 million of stock-based compensation expense related to equity awards for the three months ended June 30, 2017 and 2016, respectively, and recognized $1.3 million and $0.5 million of stock-based compensation expense related to equity awards for the six months ended June 30, 2017 and 2016, respectively. In addition to the equity-based compensation expense recognized, the Company also recognized $6,000 of stock-based compensation related to the change in the fair value of cash-settled restricted stock units ("RSUs") during the three months ended June 30, 2017. During the six months ended June 30, 2017, the Company recorded a net reduction in the fair value of cash-settled RSUs of approximately $12,000.

For the three and six months ended June 30, 2017, the Company did not grant performance-based RSUs. For the six months ended June 30, 2016, the Company granted 160,000 performance-based RSUs with an aggregate fair value of $282,000. There were no performance based RSUs granted during 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.

During the three and six months ended June 30, 2017, the Company granted 172,875 and 396,677 time-based RSUs with an aggregate fair value of $585,763 and $1,368,763, respectively. A portion of the RSUs vested immediately, a portion will vest quarterly in equal amounts over the course of eight quarters, a portion will vest one year after grant, and the remainder will vest annually in equal amounts over the course of three years. For 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.

The Company did not grant stock options during the three or six month periods ended June 30, 2017. The Company did not grant any options during the three month period ended June 30, 2016, and granted 40,000 stock options during the six month period ended June 30, 2016. The fair value of the options granted during the six months ended June 30, 2016 was $46,000.