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Stockholder's Equity and Stock-Based Compensation Expense
 6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
Stockholder's Equity and Stock-Based Compensation Expense Stockholder's Equity and Stock-Based Compensation Expense
Stock-Based Compensation
The total number of shares issued or reserved for future issuance under outstanding stock options at June 30, 2020 and 2019 was 647,483 and 766,659, respectively, and the total number of shares of restricted stock and shares reserved for restricted stock units outstanding at June 30, 2020 and 2019 was 873,371 and 794,994, respectively. The total number of stock appreciation rights (“SARs”) awards outstanding at June 30, 2020 and 2019 was 906,850 and 1,063,013, respectively. The following table presents a summary of the activity related to stock options, restricted stock, restricted stock unit awards and SARs awards for the six months ended June 30, 2020:
Stock OptionsRestricted Stock and Unit AwardsStock Appreciation Rights
Number of Shares
Outstanding at December 31, 2019689,209  908,754  954,679  
Granted—  67,500  —  
Stock options and SARs exercised/restricted stock and unit awards vested(5,000) (17,089) —  
Cancelled/forfeited(36,726) (85,794) (47,829) 
Outstanding at June 30, 2020647,483  873,371  906,850  
Stock-based compensation expense recognized for the six months ended June 30, 2020 and 2019, totaled $1.1 million and $2.8 million, respectively. SARs (credit) expense recognized for the six months ended June 30, 2020 and 2019, totaled $(1.0) million and $2.0 million, respectively.
SARs awards are considered liability awards as they are ultimately settled in cash. As such, these amounts are incrementally accrued in the liability section of the condensed consolidated balance sheets over the service period. All of the Company’s currently outstanding SARs awards achieve vesting through both a market condition and a service condition. SARs awards that are fully vested under both conditions are measured at intrinsic value (i.e. the difference between the market price on the last day of the quarter and the strike price of the awards times the number of awards vested and outstanding) and marked to market each quarter until settled. SARs awards that are not fully vested are incrementally accrued over the service period and adjusted to their fair value each quarter until settled based on a valuation model. The Company calculated the fair value of each award at June 30, 2020 and December 31, 2019 using a Monte Carlo simulation model. The following assumptions were used:
Risk-free interest rates1.9 %
Expected lives (in years)5.31
Expected dividend yield— %
Expected volatility79 %