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Stock-Based Compensation And Stock Repurchases | 3 Months Ended
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Mar. 31, 2019
Stock-Based Compensation And Stock Repurchases [Abstract] |
Stock-Based Compensation And Stock Repurchases | Note 15 – Stock-Based Compensation and Stock Repurchases ﻿ Employee and Director Stock Option Plan ﻿ The Company may grant stock options and other share-based payment awards of our Common Stock to eligible employees, directors, and consultants under the 2010 Stock Incentive Plan (the “Plan”). The aggregate total number of shares of the Common Stock authorized for issuance under the Plan is 2,197,460. ﻿ During the Company’s 2017 Annual Stockholders’ Meeting held on November 7, 2017, the Company's stockholders, upon recommendation of the Board of Directors, approved an amendment to the Plan to increase the number of shares of common stock issuable under the Plan by an additional 947,460 shares. The effect of the increase is to restore the amount of shares of Common Stock available under the Plan from the 302,540 shares available as of September 30, 2017, back up to its original reserve of 1,250,000 shares. As of March 31, 2019, we had 789,869 shares remaining for future issuances. ﻿ Since the adoption of the Plan in 2010, the Company has granted awards primarily in the form of stock options. In the 1 st quarter of 2016, the Company started to award restricted stock units (“RSUs”) to directors and certain members of management. Stock options are generally granted at exercise prices equal to the grant-date market prices and typically expire no later than five years from the grant date. In contrast to a stock option where the grantee buys the Company’s share at an exercise price determined on grant date, an RSU entitles the grantee to receive one share for every RSU based on a vesting plan. At the discretion of our Compensation and Stock Options Committee, the vesting period of stock options and RSUs granted to employees ranges from zero to four years. Grants to directors and certain executive officers are subject to Board approval. At the time the options are exercised or RSUs vest and are settled, at the discretion of management, we will issue treasury shares or make a new issuance of shares to the option or RSU holder. ﻿ Stock Options We estimate the grant-date fair value of our stock options using the Black-Scholes option-valuation model, which takes into account assumptions such as the dividend yield, the risk-free interest rate, the expected stock price volatility, and the expected life of the options. We expense the estimated grant-date fair values of options over the vesting period on a straight-line basis. Based on our historical experience, the “deemed exercise” of expiring in-the-money options and the relative market price to strike price of the options, we have not hereto estimated any forfeitures of vested or unvested options. ﻿ There were 219,408 stock options issued in the quarter ended March 31, 2019. The weighted average assumptions used in the option-valuation model were as follows: ﻿ ﻿
﻿ |  |  |  |  |  |
﻿ |  |  |  |  |  |
﻿ |  | Three Months Ended March 31,
﻿ |  | 2019 |  | 2018
﻿Stock option exercise price |  | $ | 16.12 |  | $ | —
﻿Risk-free interest rate |  |  | 2.42% |  |  | 0.00%
﻿Expected dividend yield |  |  | — |  |  | —
﻿Expected option life in years |  |  | 3.75 |  |  | —
﻿Expected volatility |  |  | 23.32% |  |  | 0.00%
﻿Weighted average fair value |  | $ | 3.50 |  | $ | —
﻿ For the quarters ended March 31, 2019 and 2018, we recorded compensation expense of $70,000 and $85,000, respectively. At March 31, 2019, the total unrecognized estimated compensation expense related to non-vested stock options was $1.5 million, which we expect to recognize over a weighted average vesting period of 2.11 years. The intrinsic, unrealized value of all options outstanding, vested and expected to vest, at March 31, 2019 was $2.0 million, of which 91% are currently exercisable. ﻿ The following table summarizes the number of options outstanding and exercisable as of March 31, 2019 and December 31, 2018: ﻿
﻿ |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |
﻿ |  | Outstanding Stock Options - Class A Shares
﻿ |  | Number of Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Years of Contractual Life |  | Aggregate Intrinsic Value
﻿ |  | Class A |  | Class A |  | Class A |  | Class A
﻿Balance - December 31, 2017 |  | 524,589 |  | $ | 12.50 |  | 3.15 |  | $ | 3,054,325
﻿Granted |  | 126,840 |  |  | 16.40 |  | — |  |  | —
﻿Exercised |  | (60,000) |  |  | 6.02 |  | — |  |  | 610,249
﻿Forfeited |  | (4,960) |  |  | 12.08 |  | — |  |  | —
﻿Balance - December 31, 2018 |  | 586,469 |  | $ | 14.01 |  | 2.88 |  | $ | 1,530,528
﻿Granted |  | 219,408 |  |  | 16.12 |  | — |  |  | —
﻿Exercised |  | (67,500) |  |  | 13.42 |  | — |  |  | 185,175
﻿Forfeited |  | (25,000) |  |  | 13.42 |  | — |  |  | —
﻿Balance - March 31, 2019 |  | 713,377 |  | $ | 14.74 |  | 3.53 |  | $ | 1,993,628
﻿ Restricted Stock Units We estimate the grant-date fair values of our RSUs using the Company’s stock price at grant-date and record such fair values as compensation expense over the vesting period on a straight-line basis. The following table summarizes the status of the RSUs granted to-date as of March 31, 2019: ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | Outstanding Restricted Stock Units
﻿ |  | RSU Grants (in units) |  |  |  | Vested, |  | Unvested, |  | Forfeited,
﻿Grant Date |  | Directors |  | Management |  | Total Grants |  | March 31, 2019 |  | March 31, 2019 |  | March 31, 2019
﻿March 10, 2016 |  | 35,147 |  | 27,381 |  | 62,528 |  | 55,684 |  | 6,844 |  |
﻿April 11, 2016 |  | — |  | 5,625 |  | 5,625 |  | 2,815 |  | 2,293 |  | 517
﻿March 23, 2017 |  | 30,681 |  | 32,463 |  | 63,144 |  | 46,919 |  | 16,225 |  |
﻿August 29, 2017 |  | — |  | 7,394 |  | 7,394 |  | 3,698 |  | 3,696 |  |
﻿January 2, 2018 |  | 29,393 |  | — |  | 29,393 |  | 29,393 |  | — |  |
﻿April 12, 2018 |  | — |  | 29,596 |  | 29,596 |  | — |  | 29,596 |  |
﻿April 13, 2018 |  | — |  | 14,669 |  | 14,669 |  | — |  | 14,669 |  |
﻿July 6, 2018 |  | — |  | 932 |  | 932 |  | — |  | — |  | 932
﻿November 7, 2018 |  | 23,010 |  | — |  | 23,010 |  | — |  | 23,010 |  |
﻿March 13, 2019 |  | — |  | 24,366 |  | 24,366 |  | — |  | 24,366 |  |
﻿March 14, 2019 |  | — |  | 23,327 |  | 23,327 |  | — |  | 23,327 |  |
﻿Total |  | 118,231 |  | 165,753 |  | 283,984 |  | 138,509 |  | 144,026 |  | 1,449
﻿ RSU awards to management vest 25% at the end of each year for 4 years. Prior to November 7, 2018, RSU awards to directors vested 100% in January of the following year in which such RSUs were granted. At the November 7, 2018 Board meeting, it was determined that it would be more appropriate for the vesting of RSUs to align with the directors’ term of office. Accordingly, the RSUs granted on November 7, 2018, will vest upon the earlier of (i) the first anniversary of grant and (ii) the date of the next annual meeting of stockholders. This means that on the date of the annual meeting of stockholders on May 7, 2019, the RSUs granted to directors on November 7, 2018 vested. Due to the fact that the Company has moved up its annual meeting of stockholders from November to May this year, this c reate d a shorter than normal vesting period for the RSUs issued on November 7, 2018. In order to adjust for this factor, the directors have determined that the award of RSUs to be made immediately following the 2019 Annual Meeting of Stockholders will be $35,000 or one half of last year's annual grant. For the quarter ended March 31, 2019 and 2018, we recorded compensation expense of $209,000 and $294,000, respectively. The total unrecognized compensation expense related to the non-vested RSUs was $1.9 million as of March 31, 2019, which we expect to recognize over a weighted average vesting period of 1.1 years. ﻿ Stock Repurchase Program ﻿ On March 2, 2017, the Company's Board of Directors authorized management, at its discretion, to spend up to an aggregate of $25.0 million to acquire shares of Reading’s Class A Common Stock. The previously approved stock repurchase program, which allowed management to spend up to an aggregate of $10.0 million to acquire shares of Reading’s Class A Common Stock, was completed as of December 31, 2016. On March 14, 2019, the Board of Directors extended this stock buy-back program for two years, through March 2, 2021. The Board of Directors did not increase the authorized amount which was $16.2 million at March 31, 2019. ﻿ The repurchase program allows Reading to repurchase its shares in accordance with the requirements of the SEC on the open market, in block trades and in privately negotiated transactions, depending on market conditions and other factors. All purchases are subject to the availability of shares at prices that are acceptable to Reading, and accordingly, no assurances can be given as to the timing or number of shares that may ultimately be acquired pursuant to this authorization. ﻿ Under the stock repurchase program, as of March 31, 2019, the Company has reacquired 559,627 shares of Class A Common Stock for $8.8 million at an average price of $15.81 per share (excluding transaction costs) to-date. 566 shares of Class A Common Stock were purchased during the quarter ended March 31, 2019 at an average price of $16.08 per share. This leaves $16.2 million available under the March 2, 2017 program, as extended, for repurchase as of March 31, 2019. ﻿

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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