Stock-Based Compensation

3 Months Ended

Mar. 31, 2018

13.	Stock-Based Compensation

The Company recognizes stock-based compensation expense for all equity-based awards issued to employees, directors and non-employees that are expected to vest. Stock-based compensation expense is based on the fair value of awards as of the grant date. The Company recognized $595,000 and $614,000 of stock-based compensation expense related to equity awards for the three months ended March 31, 2018 and 2017, respectively, under the fair value method. In addition to the stock-based compensation expense recognized, the Company also recognized $32,000 and $(18,000) of expense related to the change in the fair value of cash-settled restricted stock units (RSUs) during the three months ended March 31, 2018 and 2017, respectively.

During the three months ended March 31, 2018, the Company granted 210,092 time-based RSUs to employees with an aggregate fair value of $682,799. During the three months ended March 31, 2017, the Company granted 223,802 time-based RSUs to employees with an aggregate fair value of $783,000. A portion of the time-based RSUs vest quarterly in equal amounts over the course of eight quarters and the remainder vest annually in equal amounts over the course of three years. The fair value of the time-based RSUs is expensed ratably over the requisite service period, which ranges from one to three years.

During the three months ended March 31, 2018 and 2017, the Company did not grant performance-based RSUs or stock options.