XML 25 R14.htm IDEA: XBRL DOCUMENT v3.5.0.2
7. STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
STOCK-BASED COMPENSATION

Stock Incentive Plans

 

Options

 

We have one long-term equity incentive plan, the 2006 Equity Incentive Plan, which we amended and restated as of April 20, 2015 (the “Restated Plan”). The Restated Plan was approved by our stockholders at our annual stockholders meeting on June 11, 2015. As of September 30, 2016, we have reserved for issuance under the Restated Plan 12,000,000 shares of common stock. We can issue options, stock awards, stock appreciation rights and cash awards under the Restated Plan. Certain options granted under the Restated Plan to employees are intended to qualify as incentive stock options under existing tax regulations. Stock options generally vest over two to five years and expire five to ten years from the date of grant.

 

As of September 30, 2016, we had outstanding options to acquire 375,626 shares of our common stock, of which options to acquire 191,667 shares were exercisable. During the nine months ended September 30, 2016, we granted additional options under our Restated Plan conferring the right to acquire 170,626 shares of common stock.

 

The following summarizes all of our option transactions for the nine months ended September 30, 2016:

 

Outstanding Options
Under the 2006 Plan		  Shares   Weighted
Average
Exercise Price
per Common
Share		   Weighted
Average
Remaining
Contractual Life
(in years)		   Aggregate
Intrinsic
Value		 
Balance, December 31, 2015   931,667   $4.69           
Granted   170,626    6.01           
Exercised   (526,667)   2.96           
Canceled, forfeited or expired   (150,000)   7.51           
Balance, September 30, 2016   375,626    6.82    4.70   $452,333 
Exercisable at September 30, 2016   191,667    7.89    1.11    142,933 

 

Aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between our closing stock price on September 30, 2016 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the holder had all holders exercised their options on September 30, 2016. Total intrinsic value of options exercised during the nine months ended September 30, 2016 and 2015 was approximately $1.7 million and $6.1 million, respectively.

 

As of September 30, 2016, total unrecognized stock-based compensation expense related to non-vested employee option awards was approximately $477,000, which is expected to be recognized over a weighted average period of approximately 3.2 years.

 

Restricted Stock Awards (“RSA’s”)

 

The Restated Plan permits the award of restricted stock. As of September 30, 2016, we have issued a total of 4,256,511 RSA’s, of which 568,145 were unvested.

 

The following summarizes the activity related to all unvested RSA’s during the nine months ended September 30, 2016:

 

   RSA's   Weighted-Average
Remaining
Contractual
Term (Years)		   Weighted-Average
Fair Value		 
RSA's unvested at December 31, 2015   771,342        $5.17 
Changes during the period               
Granted   795,303        $6.16 
Vested   (998,499)       $5.13 
Forfeited   –        $0.00 
RSA's unvested at September 30, 2016   568,145    0.81   $6.19 

 

We determine the fair value of all RSA’s based on the closing price of our common stock on the award date.

 

Other stock bonus awards 

 

The Restated Plan also permits the award of stock bonuses not subject to any future service period. These awards are valued and expensed based on the closing price of our common stock on the date of award. During the nine months ended September 30, 2016, stock bonus awards issued under the Restated Plan amounted to 35,000 shares of common stock with an intrinsic value of approximately $246,000.

 

Restated Plan Summary

 

In sum, of the 12,000,000 shares of common stock reserved for issuance under the Restated Plan, at September 30, 2016, we had issued 12,060,887 total shares between options, RSA’s and other stock awards. With options cancelled and RSA’s forfeited amounting to 2,975,009 and 59,053 shares, respectively, there remain 2,973,175 shares available under the Restated Plan for future issuance.

 

Nonqualified Deferred Compensation Plan

 

On May 5, 2016, RadNet, Inc. adopted a Nonqualified Deferred Compensation Plan that is intended to provide nonqualified deferred compensation for selected participants. As part of the plan, selected participants may defer stock units granted.