STOCK BASED COMPENSATION

The Company's 2011 Incentive Stock Plan (the "Plan"), as amended on May 6, 2014, permits the grant of several types of incentives, including share options, non-qualified stock options, stock appreciation rights, restricted stock awards/ units (“RSAs”) and performance share incentives ("PSIs").

Stock Options

There were 310,000 non-qualified stock options outstanding at March 31, 2018. There were no non-qualified stock options granted or forfeited in the three months ended March 31, 2018. The fair market value of stock options is estimated using the Black-Scholes valuation model using the following assumptions:



	Three Months Ended March 31, 2018
Expected volatility	36.6% - 38.5%
Expected dividend yield	0.0% - 0.66%
Risk free rate	1.32% - 2.02%
Expected term (in years)	6.0 - 6.5
Weighted average grant date fair value	$4.81
Weighted average exercise price	$12.64

Stock options vest over a two or three-year period based on either a service period or a combination of service period and performance measures. Deferred compensation for stock options is amortized on a straight-line basis for stock options which vest over a specified service period, and is recognized ratably for stock options, which also have a performance requirement, to the extent that it is probable that the performance target will be met. Deferred compensation on stock options is adjusted for actual forfeitures when they occur. All stock options granted have a ten-year contractual term.

The aggregate intrinsic value of stock options at March 31, 2018 was $1.8 million, which is calculated as the difference between the stock price as of March 31, 2018 and the exercise price of the option. There are currently no vested and exercisable stock options outstanding.

Restricted Stock/ Unit Awards

There were 37,875 RSAs outstanding at March 31, 2018, all of which are unvested. There were no RSAs granted, and 2,625 RSAs forfeited, during the three months ended March 31, 2018. The deferred compensation for RSAs is amortized on a straight-line basis over the specified service period and is adjusted for actual forfeitures when they occur.

Performance Share Incentives

There were 40,378 PSIs outstanding at March 31, 2018, all of which are unvested. There were no PSIs granted, and 4,207 PSIs forfeited, during the three months ended March 31, 2018. The deferred compensation for PSIs is amortized based on the passage of time and achievement of performance targets and is adjusted for actual forfeitures when they occur.

Compensation Costs

Stock based compensation costs are based on estimated fair values. The fair value of service and performance based stock awards are based on the market value on the date of the grant. The fair value of stock options are estimated using a Black-Scholes valuation model. All stock based compensation to employees is recorded as "Selling, general and administrative expenses" in the Consolidated Statements of Operations. These non-cash compensation costs are included in the depreciation and amortization amounts in the Consolidated Statements of Cash Flows.

A summary of stock based compensation expense is as follows (in thousands):



	Three Months Ended March 31,
	2018		2017
Stock Options	$	139	$	—
Restricted stock/unit awards (“RSA”)	30		41
Performance share incentives (“PSI”)	39		7
Total stock based compensation	$	208	$	48

Deferred compensation and the expected weighted-average recognition periods with respect to the outstanding Stock Options, RSAs and PSIs as of March 31, 2018 and December 31, 2017, are as follows:



	March 31, 2018						December 31, 2017
	Stock Options		RSAs		PSIs		Stock Options		RSAs		PSIs
Unrecognized compensation cost (in thousands)	$	1,067	$	305	$	317	$	1,207	$	362	$	412
Expected weighted-average recognition period for unrecognized compensation cost (in years)	2.01		2.08		2.08		2.26		1.97		2.31