Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation

v3.19.3
Stock Based Compensation
9 Months Ended
Sep. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock Based Compensation

Note 11. Stock Based Compensation

 

Stock Options

 

The following table summarizes the outstanding stock option activity during the periods indicated (shares in thousands):

 

 

 

 

 

 

 

Weighted average

 

 

 

Number

of shares

 

 

Exercise price

 

 

Remaining contractual term (years)

 

Balance at December 31, 2018

 

 

1,407

 

 

$

8.73

 

 

 

 

 

Granted

 

 

770

 

 

 

11.79

 

 

 

 

 

Exercised

 

 

(148

)

 

 

4.59

 

 

 

 

 

Expired/Forfeited

 

 

(163

)

 

 

11.36

 

 

 

 

 

Balance at September 30, 2019

 

 

1,866

 

 

$

10.09

 

 

 

8.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vested and exercisable at September 30, 2019

 

 

756

 

 

$

8.38

 

 

 

6.6

 

Vested and expected to vest at September 30, 2019

 

 

1,866

 

 

$

10.09

 

 

 

8.1

 

 

The weighted average grant date fair value of options granted during the nine months ended September 30, 2019, and for the year ended December 31, 2018, was $4.18 and $3.97, respectively. For fully vested stock options, the aggregate intrinsic value as of September 30, 2019, and December 31, 2018, was $3,043,000 and $2,485,000, respectively. For stock options expected to vest, the aggregate intrinsic value as of September 30, 2019 and December 31, 2018 was $935,000 and $993,000, respectively.

 

At September 30, 2019, and December 31, 2018, there was $4,090,000 and $2,781,000, respectively, of total unrecognized compensation cost related to unvested stock options granted under the Company’s equity plans. That cost is expected to be recognized over the next three years and is based on the date the options were granted.

 

 

 

 

Restricted Stock

 

During the nine months ended September 30, 2019, the Company granted 95,478 Restricted Stock Units (RSUs) at a weighted average grant date fair value of $11.35 per share. No RSUs vested during the three and nine months ended September 30, 2019. As of September 30, 2019, the Company has 96,605 RSUs outstanding at a weighted average grant date fair value of $11.42 per share and a weighted average remaining contractual term of 1.8 years. As of September 30, 2019, there was $919,000 of total unrecognized compensation cost related to unvested RSUs.

 

Employee Stock Purchase Plan (ESPP)

 

The Company maintains the Employee Stock Purchase Plan (ESPP) that provides employees an opportunity to purchase common stock through payroll deductions. The ESPP is implemented through consecutive 6-month offering periods commencing on March 1 and September 1 of each year. The first offering period under the ESPP commenced on March 1, 2019. The purchase price is set at 85% of the fair market value of the Company's common stock on either the first or last trading day of the offering period, whichever is lower, and annual contributions are limited to the lower of 20% of an employee's eligible compensation or such other limits as apply under Section 423 of the Internal Revenue Code for such plans such as the ESPP. The ESPP is intended to qualify as an employee stock purchase plan for purposes of Section 423 of the Internal Revenue Code.

 

Based on the 15% discount and the fair value of the option feature of the ESPP, it is considered compensatory. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. The Company currently uses authorized and unissued shares to satisfy share award exercises.

 

 The Company received proceeds of $97,000 from the issuance of 10,000 shares under the ESPP in August 2019.