Stock-Based Compensation

3 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

16. Stock-Based Compensation

In connection with the Merger, on December 22, 2016, the Company’s stockholders approved the Inspired Entertainment, Inc. 2016 Long-Term Incentive Plan (the “2016 Incentive Plan”). Under the 2016 Incentive Plan, the Compensation Committee is authorized to grant awards to employees, officers, directors and other service providers of the Company and its affiliates and to determine the number and types of such awards and the terms, conditions, vesting and other limitations applicable to each such award. The 2016 Incentive Plan provides for the issuance of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards (including cash-based performance awards), and other cash-based or stock-based awards. As of December 31, 2016, there were 2,778,818 shares authorized for issuance under the 2016 Incentive Plan and 1,105,868 shares available for issuance.

On December 29, 2016, the Company granted 950,484 shares of restricted stock under the 2016 Incentive Plan to certain members of management. The restricted stock awards contain both market and service conditions. The Company recorded $21 of compensation expense during the period ended December 31, 2016.

On December 29, 2016, the Company granted 722,466 RSUs under the 2016 Incentive Plan to certain members of management. The RSUs contain both market and service conditions. The Company recorded $16 of compensation expense during the period ended December 31, 2016.

In addition, on December 22, 2016, the Company’s Board of Directors approved the Second Plan. The Second Plan was adopted principally in order to provide a mechanism through which certain management bonuses due in cash to certain members of management of Inspired upon consummation of the Merger could be paid partially in stock in order to preserve liquidity in the Company. Under such arrangement, certain members of management entitled to such cash bonuses agreed to accept 50% of the bonuses due in cash at closing and 50% in RSUs under the Second Plan, subject to the approval of the Second Plan by the Company’s stockholders. The maximum number of RSUs that can be granted under the Second Plan is 200,000. The Board of Directors has approved grants totaling 95,414 RSU’s under the Second Plan conditioned on stockholder approval. Until stockholder approval is obtained, awards under the Second Plan are not considered issued and outstanding (see Note 14).

Stock-based compensation is recognized as an expense on a straight-line basis over the requisite service period, which is generally the vesting period. As of December 31, 2016, there were 1,672,950 shares of non-vested restricted stock and RSUs outstanding.