Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation Plan

Stock-Based Compensation Plan
6 Months Ended
Jun. 30, 2018
Stock-Based Compensation Plan [Abstract]  
Stock-Based Compensation Plan


Under the Company’s current 2015 Stock Incentive Plan (the “2015 Plan”), the Company’s Board of Directors (the “Board of Directors”) has flexibility to determine the type and amount of awards to be granted to eligible participants, who must be employees, directors, officers or consultants of the Company or its subsidiaries.  The 2015 Plan allows for grants of incentive stock options, nonqualified stock options, restricted stock awards, stock appreciation rights, and restricted units.  The aggregate number of shares of common stock that may be granted through awards under the 2015 Plan to any employee in any calendar year may not exceed 500 shares.  The 2015 Plan will continue in effect until December 2025 unless terminated sooner. 

During the six months ended June 30, 2018, the Company issued stock options for an aggregate of 1,538 shares under the 2015 Plan to directors and employees of the Company.  The 1,500 options issued vest in five equal tranches on December 31, 2018, 2019, 2020, 2021 and 2022.  The remaining options vest in four equal consecutive quarterly tranches from the date of grant.

For computing the fair value of the stock-based awards, the fair value of each option grant has been estimated as of the date of grant using the Black-Scholes option-pricing model with the following assumptions:



Options Granted During the Six Months Ended June 30, 2018



Number of options



Option vesting period


1 - 5 Years

Grant price


$6.80 - $7.35

Dividend yield



Expected volatility (a)


41.2% - 42.5%

Risk-free interest rate


2.65% - 2.79%

Expected life (years) (b)


5.00 - 6.50

Weighted average fair value


$2.77 - $3.09




Expected volatility is based upon the Company’s historical volatility.


The expected term was determined based upon the underlying terms of the awards and the category and employment history of employee award recipient.

Using these assumptions, the fair value of the stock options granted during the six months ended June 30, 2018 was $4,595, which will be recognized over the vesting period of the options.

The total non-cash stock compensation expense related to restricted stock, stock options and stock awards recorded by the Company for the three months ended June 30, 2018 and 2017 was $656 and $309, respectively, and for the six months ended June 30, 2018 and 2017 was $1,155 and $342, respectively.  For the three and six months ended June 30, 2018 and 2017, the majority of stock-based compensation costs were classified as selling, general and administrative expenses.

As of June 30, 2018, there were 1,876 unvested stock options and unrecognized compensation cost of $4,949 related to unvested stock options, as well as 850 unvested restricted stock awards and unrecognized compensation costs of $826 related to unvested restricted stock awards.