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Equity Incentive Plans
9 Months Ended
Sep. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Equity Incentive Plans

Note 8 – Equity Incentive Plans:

Total compensation cost for share-based payments recognized for the three months ended September 30, 2019 and 2018 is $3,129,648 and $1,866,604, respectively. Total compensation cost for share-based payments recognized for the nine months ended September 30, 2019 and 2018 is $5,870,657 and $4,260,638, respectively.

2010 Stock PlanThe outstanding options are time-based (vest between two and four years). At September 30, 2019, there were zero shares available for grant as the 2010 Plan is frozen. The total number of unexercised options for the 2010 Plan is 289,530.

2014 Omnibus Incentive Plan—In November 2014, the Company approved the 2014 Omnibus Incentive Plan (the “2014 Plan”). Under the 2014 Plan, 3,979,200 shares of common stock may be issued or used for reference purposes as awards granted. These awards may be in the form of stock options, stock appreciation rights, restricted stock, as well as other stock-based and cash-based awards. At September 30, 2019, the awards granted were either time-based, performance-based (vest when performance targets are met, as defined in the stock option grant agreement), or restricted stock units (employee RSUs vest over three years or cliff vest (as defined in the restricted stock agreement) and non-employee director RSUs vest over one year). The total number of unexercised options and RSUs for the 2014 Plan is 1,547,505.

At September 30, 2019, there were 1,665,120 shares of common stock available to be issued or used for reference purposes under the 2014 Plan.

NASDAQ Marketplace Rules Inducement Award—During fiscal year 2016, share-based awards were granted to the Company’s Chief Executive Officer as an inducement under the NASDAQ Marketplace Rules, and therefore outside of any Plan. Under the terms of the agreement, the grant is governed as if issued under the 2014 Omnibus Plan. As of

September 30, 2019, the awards granted were time-based (cliff vest over four years) and performance-based (vest when performance targets are met, as defined in the stock option grant agreement).

Service Period Stock Options

The following table includes activity related to outstanding service period stock options during the nine months ended September 30, 2019.

 

Service Period Stock Options

 

Shares

 

 

Weighted Average Exercise Price

 

Outstanding at December 31, 2018

 

 

1,793,981

 

 

$

9.84

 

Granted

 

 

23,536

 

 

 

42.29

 

Exercised

 

 

(417,962

)

 

 

8.40

 

Forfeited

 

 

(1,191

)

 

 

9.64

 

Outstanding at September 30, 2019

 

 

1,398,364

 

 

$

10.82

 

 

Performance-Vested Stock Options

The following table includes activity related to outstanding performance-vested stock options during the nine months ended September 30, 2019.

Performance Based Options

 

Shares

 

 

Weighted Average Exercise Price

 

Outstanding at December 31, 2018

 

 

1,275,746

 

 

$

13.62

 

Granted

 

 

9,254

 

 

 

42.29

 

Exercised

 

 

(35,447

)

 

9.98

 

Forfeited

 

 

(39,253

)

 

 

9.05

 

Outstanding at September 30, 2019

 

 

1,210,300

 

 

$

14.09

 

 

As of September 30, 2019, 1,151,051 performance-vested stock options at a weighted average exercise price of $14.13 have performance metrics that are probable of achievement. During the three months ended September 30, 2019, the Company assessed that 295,936 performance-vested stock options became probable of achievement resulting in additional share-based compensation cost true-up of $1.6 million which was recorded to SG&A.

 

Restricted Stock Units

The following table includes activity related to outstanding restricted stock units during the nine months ended September 30, 2019.

 

Restricted Stock Units

 

Shares

 

 

Weighted-Average Grant-Date Fair Value Per Unit

 

Outstanding at December 31, 2018

 

 

271,979

 

 

$

19.07

 

Granted

 

 

77,609

 

 

 

41.82

 

Issued upon vesting

 

 

(122,392

)

 

 

17.57

 

Forfeited

 

 

(2,528

)

 

 

27.42

 

Outstanding at September 30, 2019

 

 

224,668

 

 

$

27.65