Shareholder's Equity and Stock-Based Compensation

9 Months Ended

Sep. 30, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Shareholder's Equity and Stock-Based Compensation

(9) Shareholder’s Equity and Stock-Based Compensation

The Company granted 974,896 awards to employees under the 2016 Incentive Award Plan, during the nine months ended September 30, 2017, consisting of 777,550 stock option awards, 118,000 restricted stock awards (“RSA”) and 38,000 restricted stock units (“RSU”), all vesting after four years. The Company granted an additional 41,346 stock option awards, vesting over one year, to non-employee directors under the 2016 Incentive Award Plan, during the nine months ended September 30, 2017.

The Company granted 45,923 Awards under the 2014 Equity Incentive Plan, consisting of 34,812 stock options vesting equally over four years and 11,111 fully-vested shares, during the nine months ended September 30, 2016. The Company also granted 643,680 stock options under the 2016 Plan during the nine months ended September 30, 2016, consisting of 626,650 stock options vesting after four years and 17,030 stock options with one-third vesting on October 31, 2016, and the remainder vesting in eight equal monthly installments beginning in November 2016.

Award Activity

The following table sets forth the Company’s stock option activity:

	Nine Months Ended September 30, 2017
				Weighted Average
	Stock Options			Exercise Price
Outstanding - beginning of period		2,350,166		$	17.57
Granted		818,896		$	28.29
Exercised		(83,675	)	$	15.26
Forfeited/Expired		(225,051	)	$	20.66
Outstanding - end of period		2,860,336		$	20.46

Exercisable - end of period		939,835		$	15.34

The following table sets forth the Company’s RSA/RSU activity:

	Nine Months Ended
	September 30, 2017
	Shares/Units
Outstanding and unvested - beginning of period		59,258
Granted		156,000
Vested		-
Forfeited		-
Outstanding and unvested - end of period		215,258

Cumulative vested shares - end of period		1,854,658

Stock-based compensation expense recognized in the condensed consolidated statements of operations related to all outstanding stock based compensation awards is summarized below (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Direct costs, excluding depreciation and amortization	$	389	$	2,500	$	1,504	$	4,974
Selling, general and administrative		592		1,784		1,711		3,585
Total stock-based compensation expense	$	981	$	4,284	$	3,215	$	8,559