Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation Plan

Stock-Based Compensation Plan
6 Months Ended
Jun. 30, 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 six months ended June 30, 2020, the Company issued stock options for an aggregate of 263 shares under the 2015 Plan to directors and employees of the Company. Of the 263 options issued, 38 options vest in four equal consecutive quarterly tranches from the date of grant. 145 options issued vest in four equal annual tranches beginning December 31, 2020. 50 options issued vest in five equal annual tranches beginning December 31, 2020. The remaining 30 options issued vest in three equal annual tranches beginning December 31, 2020.

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, 2020

Number of options


Option vesting period

1 - 5 Years

Grant price

$9.99 - $11.84

Dividend yield

0.84% - 1.00%

Expected volatility (a)

40.9% - 44.2%

Risk-free interest rate

0.41% - 0.65%

Expected life (years) (b)

5.31 - 6.25

Weighted average fair value

$3.72 - $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 six months ended June 30, 2020 was $1,067, 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, 2020 and 2019 was $616 and $783, respectively, and for the six months ended June 30, 2020 and 2019 was $1,229 and $1,568, respectively. For the three and six months ended June 30, 2020 and 2019, the majority of stock-based compensation costs were classified as selling, general and administrative expenses.

As of June 30, 2020, there were 1,403 unvested stock options and unrecognized compensation cost of $4,340 related to unvested stock options, as well as 600 unvested restricted stock awards and unrecognized compensation costs of $2,518 related to unvested restricted stock awards.