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Mezzanine and Stockholders' Equity | 9 Months Ended
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Sep. 30, 2020
Stockholders' Equity Note [Abstract] |
Mezzanine and Stockholders' Equity | Mezzanine and Stockholders’ Equity Mezzanine As the redemption feature (see Note 2) of the shares is not solely within the control of APC, the equity of APC does not qualify as permanent equity and has been classified as noncontrolling interest in APC as mezzanine or temporary equity. APC’s shares are not redeemable and it is not probable that the shares will become redeemable as of September 30, 2020 and December 31, 2019. Stockholders’ Equity As of September 30, 2020, 302,732 holdback shares have not been issued to certain former NMM shareholders who were NMM shareholders at the time of closing of the merger between NMM and ApolloMed in December 2017 (the "Merger"), as they have yet to submit properly completed letters of transmittal to ApolloMed in order to receive their pro rata portion of ApolloMed common stock and warrants as contemplated under the merger agreement. Pending such receipt, such former NMM shareholders have the right to receive, without interest, their pro rata share of dividends or distributions with a record date after the effectiveness of the Merger. The consolidated financial statements have treated such shares of common stock as outstanding, given the receipt of the letter of transmittal is considered perfunctory and the Company is legally obligated to issue these shares in connection with the Merger. See options and warrants section below for common stock issued upon exercise of stock options and stock purchase warrants. Options The Company’s outstanding stock options consisted of the following:
| Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value (in thousands)
Options outstanding at January 1, 2020 | 607,346 |  |  | $ | 9.22 |  |  | 3.42 |  | $ | 5,600 |
Options granted | 11,742 |  |  | 18.41 |  |  | — |  |  | — |
Options exercised | (120,000) |  |  | 2.58 |  |  | — |  |  | 1,800 |
Options forfeited | (12,228) |  |  | 17.57 |  |  | — |  |  | — |
Options outstanding at September 30, 2020 | 486,860 |  |  | $ | 10.86 |  |  | 3.45 |  | $ | 3,300 |
Options exercisable at September 30, 2020 | 405,833 |  |  | $ | 7.91 |  |  | 2.75 |  | $ | 3,500 |
During the nine months ended September 30, 2020 and 2019, stock options were exercised for 120,000 and 203,524 shares, respectively, of the Company’s common stock, which resulted in proceeds of approximately $0.3 million and $1.2 million, respectively. The exercise price ranged from $2.10 to $5.00 per share for the exercises during the nine months ended September 30, 2020, and ranged from $1.50 to $10.00 per share for the exercises during the nine months ended September 30, 2019. During the nine months ended September 30, 2020 and 2019, no stock options were exercised pursuant to the cashless exercise provision. During the nine months ended September 30, 2020, the Company granted 11,742 stock options with a vesting period of five-years to certain ApolloMed board members with an exercise price of $18.41, which were recognized at fair value, as determined using the Black-Scholes option pricing model and the following assumptions:
September 30, 2020 | Board Members
Expected term | 3.0 years
Expected volatility | 90.01 | %
Risk-free interest rate | 1.43 | %
Market value of common stock | $ | 10.56 |
Annual dividend yield | — | %
Forfeiture rate | — | %
Restricted Stock Awards The Company grants restricted stock awards to employees which are earned based on service conditions. The grant date fair value of the restricted stock awards is that day’s closing market price of the Company’s common stock. During the nine months ended September 30, 2020, the Company granted restricted stock awards totaling 97,447 shares with a weighted average grant date fair value of $17.58. The grant date fair value of the restricted stock was $1.6 million and will be recognized on a straight-line basis over the awards’ vesting period of three years. During the three and nine months ended September 30, 2020, the Company recorded approximately $0.6 million and $2.2 million of share-based compensation expense associated with the issuance of restricted shares of common stock and vesting of stock options which are included in general and administrative expenses in the accompanying consolidated statements of income, respectively. Unrecognized compensation expense related to total share-based payments outstanding as of September 30, 2020, was $3.1 million. Warrants The Company’s outstanding warrants consisted of the following:
| Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value (in thousands)
Warrants outstanding at January 1, 2020 | 3,154,590 |  |  | $ | 9.96 |  |  | 2.01 |  | $ | 26,700 |
Warrants granted | — |  |  | — |  |  | — |  |  | — |
Warrants exercised | (800,709) |  |  | 9.22 |  |  | — |  |  | 6,000 |
Warrants expired/forfeited | — |  |  | — |  |  | — |  |  | — |
Warrants outstanding at September 30, 2020 | 2,353,881 |  |  | $ | 10.21 |  |  | 1.62 |  | $ | 18,200 |
Exercise Price Per Share |  | Warrants Outstanding |  | Weighted Average Remaining Contractual Life |  | Warrants Exercisable |  | Weighted Average Exercise Price Per Share
$ | 9.00 |  |  | 305,812 |  |  | 0.04 |  | 305,812 |  |  | $ | 9.00 |
10.00 |  |  | 1,248,779 |  |  | 1.64 |  | 1,248,779 |  |  | 10.00 |
11.00 |  |  | 799,290 |  |  | 2.19 |  | 799,290 |  |  | 11.00 |
$ $ 9.00 –11.00 |  | 2,353,881 |  |  | 1.62 |  | 2,353,881 |  |  | $ | 10.21 |
During the nine months ended September 30, 2020 and 2019, common stock warrants were exercised for 800,709 and 133,221 shares, respectively, of the Company’s common stock, which resulted in proceeds of approximately $6.2 million and $1.2 million, respectively. The exercise price ranged from $9.00 to $11.00 per share for the exercises during the nine months ended September 30, 2020 and 2019, respectively. During the nine months ended September 30, 2020, common stock warrants were exercised on a cashless basis for 127,022 shares of the Company's common stock which resulted in the Company issuing 66,517 net shares. Treasury Stock APC owned 17,307,214 and 17,290,317 shares of ApolloMed’s common stock as of September 30, 2020 and December 31, 2019, respectively, which are legally issued and outstanding but excluded from shares of common stock outstanding in the consolidated financial statements, as such shares are treated as treasury shares for accounting purposes (see Note 1). During the year ended December 31, 2019, APC established a brokerage account to invest excess capital in the equity market. The brokerage account is managed directly by an independent investment committee of the APC board of directors, from which Dr. Kenneth Sim and Dr. Thomas Lam have been excluded. As of September 30, 2020, the brokerage account only held shares of ApolloMed totaling $7.6 million, and as such the ApolloMed shares in the brokerage account have been recorded as treasury shares. Dividends During the nine months ended September 30, 2020 and 2019, APC paid dividends of $49.5 million and $59.7 million, respectively. During the nine months ended September 30, 2020 and 2019, CDSC paid dividends of $0.6 million and $1.2 million, respectively.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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