Stock-Based Compensation

Equity Incentive Plans

In May 2012, the Board approved the 2012 Equity Incentive Plan (“2012 Plan”), which provides for the issuance of equity awards of up to a maximum of 440 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 equity awards of up to 880 shares of the Company’s common stock. The awards can 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 on whether the recipient already holds above 10% of the voting power of all classes of the Company’s shares. The exercise price will be based on the fair market value of the share on the date of issuance; vesting periods will be determined by the board upon issuance of the equity award. Subsequent to the Company’s initial public offering, no additional equity awards were made under the 2012 Plan.

In November 2016, in connection with its initial public offering, the Company adopted the 2016 Omnibus Incentive Plan (“2016 Plan”) which provides for the issuance of equity awards of up to a maximum of 3,911 shares of the Company’s common stock to employees, non-employee members of the board and consultants of the Company. Together the 2012 Plan and the 2016 Plan are referenced to as the “Plans”.

During the six months ended June 30, 2019 and 2018, 335 and 723 shares of restricted stock were issued under the Plans, respectively. The grant date fair value per share of all the outstanding restricted stock was $2.44 - $19.00. The shares vest over one to four years from their respective grant dates. For equity awards issued under the 2016 Plan, the grant date fair value was either the actual market price of the Company’s shares or an adjusted price using a Monte Carlo simulation for awards subject to the Company’s performance as compared to a defined peer group. For equity awards issued under the 2012 Plan, 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, in operating expenses on the condensed consolidated income statements, $754 and $670 of compensation expense for the restricted stock during the three months ended June 30, 2019 and 2018, respectively. The Company recognized, in operating expenses on the consolidated income statements, $1,544 and $1,260 of compensation expense for the restricted stock during the six months ended June 30, 2019 and 2018, respectively. At June 30, 2019, the Company had unrecognized compensation expense of $4,981 related to granted but unvested stock awards, which is to be recognized as follows:



Remainder of 2019	$	1,304
2020	2,075
2021	1,040
2022	461
2023	101
Total	$	4,981

The following table summarizes restricted stock activity under the Plans from December 31, 2018 through June 30, 2019:



	Number of Shares		Weighted Average
Unvested, December 31, 2018	1,027		$	9.83
Granted	335		$	2.54
Vested	(256	)	$	7.30
Forfeited	(18	)	$	6.38
Unvested, June 30, 2019	1,088		$	9.31

Employee Stock Purchase Plan

Shares of the Company’s common stock may be purchased by eligible employees under the Company’s 2016 Employee Stock Purchase Plan in six-month intervals at a purchase price equal to at least 85% of the lesser of the fair market value of the Company’s common stock on either the first day or the last day of each six-month offering period. Employee purchases may not exceed 20% of their gross compensation during an offering period.