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Stock-Based Compensation

3 Months Ended

Mar. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

ACM’s stock-based compensation awards consisting of employee and non-employee awards were issued under the 1998 Stock Option Plan and 2016 Omnibus Incentive Plan.

Employee Awards

The following table summarizes the Company’s employee share option activities during the three months ended March 31, 2018:

		Number of Option Shares				Weighted Average Grant Date Fair Value				Weighted Average Exercise Price			Weighted Average Remaining Contractual Term
Outstanding at December 31, 2017			2,045,616			$	0.66			$	2.46		7.57 years
Granted			500,000				2.26				5.31
Exercised			(57,222	)			0.47				1.09
Expired			(2,575	)			0.55				3.00
Forfeited			(72,192	)			0.54				3.00
Outstanding at March 31, 2018			2,413,627				1.00				3.06		7.86 years
Vested and exercisable at March 31, 2018			1,120,598

The Company recognized employee stock-based compensation expense of $93 and $61 during the three months ended March 31, 2018 and 2017, respectively. As of March 31, 2018 and December 31, 2017, $1,597 and $1,690 respectively, of total unrecognized employee stock-based compensation expense, net of estimated forfeitures, related to stock-based awards were expected to be recognized over a weighted-average period of 2.05 years and 1.77 years, respectively. Total recognized compensation cost may be adjusted for future changes in estimated forfeitures.

The fair value of each option granted to an employee during the three months ended March 31, 2018 was estimated on the grant date using the Black-Scholes valuation model with the following assumptions. No options were granted to employees during the three months ended March 31, 2018.

		March 31, 2018
Fair value of common share(1)		$	5.31
Expected term in years(2)			6.25
Volatility(3)			39.14	%
Risk-free interest rate(4)			2.55	%
Expected dividend(5)			0.00	%

(1)	Common stock price was market close price at grant date of January 25, 2018.

(2)	Expected term of share options is based on the average of the vesting period and the contractual term for each grant, in accordance with Staff Accounting Bulletin 110.

(3)	Volatility is calculated based on the historical volatility of comparable companies in the period equal to the expected term of each grant.

(4)	Risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the share options in effect at the time of grant.

(5)	Expected dividend is assumed to be 0% as ACM has no history or expectation of paying a dividend on its common stock.

Non-employee Awards

The following table summarizes the Company’s non-employee share option activities during the three months ended March 31, 2018:

Number of

Option Shares

Weighted

Average Grant

Date Fair Value

Weighted

Average Exercise

Price

Weighted Average

Remaining

Contractual Term

Outstanding at December 31, 2017

1,326,676

$

0.78

$

2.52

7.54 years

Granted

─

─

─

─

Exercised

─

─

─

─

Expired

─

─

─

─

Forfeited

─

─

─

─

Outstanding at March 31, 2018

1,326,676

$

0.75

2.52

7.29 years

Vested and exercisable at March 31, 2018

841,329

The Company recognized non-employee stock-based compensation expense of $2,083 and $774 during the three months ended March 31, 2018 and 2017, respectively.

The fair value of each option granted to a non-employee during the three months ended March 31, 2018 was calculated by application of the Black-Scholes valuation model with the following assumptions. No options were granted to any non-employee during the three months ended March 31, 2018.

	March 31, 2018
Fair value of common share(1)	$12.30
Expected term in years(2)	3.33-5.36
Volatility(3)	45.48%
Risk-free interest rate(4)	2.39%-2.56%
Expected dividend(5)	0.00%

(2)	Common stock price was market close price at March 31, 2018.

(3)	Expected term of share options is based on the average of the vesting period and the contractual term for each grant, in accordance with Staff Accounting Bulletin 110.

(4)	Volatility is calculated based on the historical volatility of comparable companies in the period equal to the expected term of each grant.

(5)	Risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the share options in effect at the time of grant.

(6)	Expected dividend is assumed to be 0% as ACM has no history or expectation of paying a dividend on its common stock.