Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation Plan

v3.20.1
Stock-Based Compensation Plan
 3 Months Ended
Mar. 31, 2020
Stock-Based Compensation Plan [Abstract]  
Stock-Based Compensation Plan

NOTE 10.  STOCK-BASED COMPENSATION PLAN



Under the Company’s current 2015 Stock Incentive Plan (the “2015 Plan”), the Company’s 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 three months ended March 31, 2020, the Company issued stock options for an aggregate of 125 shares under the 2015 Plan to employees of the Company.  The 125 options issued vest in four equal tranches on December 31, 2020, 2021, 2022 and 2023.



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 Three Months Ended March 31, 2020



 

 

 

 

Number of options

 

125

 

 

Option vesting period

 

4 Years

 

 

Grant price

 

$11.84

 

 

Dividend yield

 

0.84%

 

 

Expected volatility (a)

 

40.9%

 

 

Risk-free interest rate

 

0.65%

 

 

Expected life (years) (b)

 

6.25

 

 

Weighted average fair value

 

$4.35

 

 



 

 

 

 

(a)

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



(b)

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





The grant date fair value of the stock options granted during the three months ended March 31, 2020 was $543, 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 March 31, 2020 and 2019 was $613 and $785, respectively.  For the three months ended March 31, 2020 and 2019, the majority of stock-based compensation costs were classified as selling, general and administrative expenses.



As of March 31, 2020, there were 1,325 unvested stock options and unrecognized compensation cost of $4,228 related to unvested stock options, as well as 600 unvested restricted stock awards and unrecognized compensation costs of $2,724 related to unvested restricted stock awards.