NOTE

—

EQUITY

As of

March 31, 2019,

we had

40,832,890

shares of common stock outstanding.

Stock

-Based Compensation

We have a stock-based compensation plan under which stock options, restricted stock, performance shares and other stock-based awards

may

be granted. At

March 31, 2019,

5.2

million shares were available under the current plan for future awards.

Total compensation costs recognized for all stock-based compensation was

$0.9

million and

$0.6

million for the

three

months ended

March 31, 2019

and

2018,

respectively.

Share Options –

A total of

937,424

options for the purchase of shares of the Company’s common stock were granted to

two

executives on

August 31, 2016

at a purchase price of

$5.34

per share. Stock-based compensation expense totaling

$2.1

million was recognized during

2017

for the accelerated vesting of these options in our IPO. The options have a

ten

-year term from the grant date. The options remain outstanding and unexercised at

March 31, 2019

and are in-the-money.

Restricted Shares—

We grant restricted stock to certain senior executives, key employees and directors. The shares vest over

one

three

years from the date of grant. During the vesting period, the participants have voting rights and

may

receive dividends, but the shares

may

not

be sold, assigned, transferred, pledged or otherwise encumbered. Additionally, granted but unvested shares are forfeited upon termination of employment, unless an employee enters into another written arrangement with the Company. The fair value of the restricted shares on the date of the grant is amortized ratably over the service period. Compensation expense related to these awards totaled

$0.9

million and

$0.6

million for the

three

months ended

March 31, 2019

and

2018,

respectively. As of

March 31,

2019,

there was

$7.1

million of total unrecognized compensation cost related to unvested restricted stock to be recognized over a weighted-average period of

1.6

years.

The following table summarizes restricted awards outstanding as of

March 31,

2019,

as well as activity during the period:

	Shares			Weighted Average Grant Date Fair Value
Outstanding at December 31, 2018		966,134		$	6.99
Granted		757,510			5.47
Vested		—			—
Forfeited		(7,120	)		6.05
Outstanding at March 31, 2019		1,716,524		$	6.32