Stock-Based Compensation

12 Months Ended

Dec. 31, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

16. Stock-Based Compensation

In May 2012, the Board approved the 2012 Equity Incentive Plan (“2012 Plan”), which provides for the issuance of Awards (as defined in the 2012 Plan) of up to a maximum of 440,000 shares of the Company’s common stock to employees, non-employee members of the Board, and consultants of the Company. During 2014, the 2012 Plan was amended to provide for the issuance of Awards up to 880,000 shares of the Company’s common stock. The awards could be issued in the form of incentive stock options, non-qualified stock options or restricted stock, and have expiration dates of 5 or 10 years after issuance, depending whether the recipient already holds above 10% of the voting power of all classes of the Company’s shares. The exercise price was based on the fair market value of the share on the date of issuance; vesting periods were determined by the board upon issuance of the Award.

During 2016, 2015 and 2014, 160,600, 44,000 and 338,800 shares of restricted stock were issued under the 2012 Plan, respectively. The grant date fair value of all the restricted stock per share was $1.89—$8.06. The shares vest over two to five years from their respective grant dates. The grant date fair value was calculated based on a weighted analysis of (i) publicly-traded companies in a similar line of business to the Company (market comparable method)—Level 2 inputs, and (ii) discounted cash flows of the Company—Level 3 inputs. The Company recognized $1,072, $793 and $419 of compensation expense for the restricted stock during 2016, 2015 and 2014, respectively, in operating expenses on the consolidated income statements. At December 31, 2016 the Company had unrecognized compensation expense of $1,347. That expense is expected to be recognized as follows:

Year Ending December 31,
2017	$	608
2018		508
2019		214
2020		17
	$	1,347

The following table summarizes restricted stock activity under the Plan from January 1, 2015 through December 31, 2016:

	Number of Shares			Weighted Average
Unvested, January 1,2015		370,407		$	7.89
Granted		44,000			8.06
Vested		(98,450	)		(7.61	)
Forfeiture		(26,400	)		(7.75	)
Unvested, December 31,2015		289,557		$	8.02
Granted		160,600			3.85
Vested		(167,090	)		(6.79	)
Forfeiture		(9,900	)		(6.00	)
Unvested, December 31, 2016		273,167		$	7.35

In December 2016, 77,000 shares of performance-based restricted stock vested. The Company had been recognizing compensation expense on these performance-based restricted stock over the expected timeframe until a performance condition was satisfied, but has accelerated recognition of the remaining $242 compensation expense through the date such a condition was satisfied.

In connection with the Company’s initial public offering, the Company adopted a 2016 Omnibus Incentive Plan. The Company has not made any grants under the 2016 Omnibus Incentive Plan.