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:
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.
Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef