15.Stock-Based Compensation

 

The Company has stock options and restricted stock units outstanding under the 2004 Stock Incentive Plan (the “2004 Plan”) and the 2010 Long-Term Incentive Plan (the “2010 Plan”).

 

As of March 31, 2018, the maximum number of common shares of the Company available for future issuance under the Company’s plans is 3,101,905.  

 

Stock-based compensation expense under the Company’s plans was as follows:

 

 

The tax effect on stock-based compensation expense above was calculated using a blended statutory rate of 25.3% and 37.5% for the three months ended March 31, 2018 and 2017, respectively. However, due to the valuation allowance recorded on domestic deferreds, there was no tax effect related to stock-based compensation expense for the three months ended March 31, 2018.

 

Stock Options

 

The following weighted average assumptions were used to value options granted during the periods indicated:

 

 

The following table summarizes option activity under the Company’s plans:

 

 

Exercise prices of stock options outstanding as of March 31, 2018 range from $7.15 to $55.29. At March 31, 2018, there was $1,458 of unrecognized stock-based compensation expense related to unvested stock options, which the Company expects to recognize over a weighted-average period of 1.6 years.

 

Restricted Stock Units and Restricted Stock Awards

 

Periodically, the Company grants restricted stock unit awards to employees. The following is a summary of the activity for unvested restricted stock units and awards granted under the Company’s plans:

 

 

At March 31, 2018, there was $81,871 of unrecognized stock-based compensation expense related to unvested restricted stock units and awards, which the Company expects to recognize over a weighted-average period of 2.4 years.

 

During March 2018, the Company granted 26,000 performance-based restricted stock unit awards to certain employees. These performance-based shares vest upon the achievement of certain business and financial metrics. The business and financial metrics governing the vesting of these stock unit awards provide thresholds which dictate the number of shares to vest upon each evaluation date, which range from 50% to 150%. If these metrics are achieved at 100%, as defined in the individual grant terms, these shares would vest over three annual tranches equally.