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Note J - Equity-based Compensation

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Text Block]

NOTE J—EQUITY-BASED COMPENSATION

Grants for the three months ended September 30, 2020 and 2019:

The weighted average estimated fair value of employee restricted stock units (“RSUs”), that will be recognized as an expense, granted during the three months ended September 30, 2020 was $14.79 per share (using the weighted average pre vest cancellation rate of 4.32% for the three months ended September 30, 2020, on an annual basis).

There were no grants of employee stock options, RSUs or stock appreciation rights (“SARs”) during the three months ended September 30, 2019.

Employee stock benefit plans

As of September 30, 2020, the Company had two equity incentive plans from which the Company may grant future equity awards and one expired equity incentive plans from which no future equity awards may be granted but had outstanding equity awards granted prior to expiration. The Company also had one employee stock purchase plan. As of September 30, 2020, approximately 563,000 shares of common stock remain available for grant under the Company’s employee stock purchase plan and approximately 1,049,000 shares of common stock remain available for grant under the Company’s equity incentive plans.

The table below presents a summary of information relating to the Company’s stock option, RSU and SAR grants pursuant to its equity incentive plans (unaudited):

	*Number of Options/SARs/RSUs*			Weighted average exercise price		*Weighted average remaining contractual term (years) (3)*		**Aggregate value ()***
	*in thousands*							*in thousands*
Outstanding at June 30, 2020		1,872		$	2.45		3.97
Options granted		-			-
SARs granted		-			-
RSUs granted		92			-
Options / SARs / RSUs cancelled/forfeited/expired		(72	)		-
Options / SARs exercised and RSUs vested		(79	)	$	0.03
Outstanding at September 30, 2020 (1)		1,813		$	2.52		3.72	$	19,323
Exercisable at September 30, 2020 (2)		440		$	9.58		3.71	$	1,581

(*) Calculation of aggregate intrinsic value is based on the share price of the Company’s common stock on September 30, 2020 ($13.18 per share).

(1) Due to the ceiling imposed on the SAR grants, the outstanding amount above can be exercised for a maximum of 1,773,000 shares of the Company’s common stock as of September 30, 2020. SAR grants made on or after January 1, 2012 are convertible for a maximum number of shares of the Company’s common stock equal to 50% of the SARs subject to the grant.

(2) Due to the ceiling imposed on the SAR grants, the exercisable amount above can be exercised for a maximum of 411,000 shares of the Company’s common stock as of September 30, 2020.

(3) Calculation of weighted average remaining contractual term does not include RSUs that were granted, which have indefinite contractual term.

Additional information about stock options, SARs and RSUs outstanding and exercisable at September 30, 2020 with exercise prices above $13.18 per share (the closing price of the Company’s common stock on September 30, 2020) is as follows (unaudited):

	*Exercisable*				*Unexercisable*				*Total*
Exercise prices	Number of Options/ SARs / RSUs (in thousands)		Weighted average exercise price		Number of Options/ SARs / RSUs (in thousands)		Weighted average exercise price		Number of Options/ SARs / RSUs (in thousands)		Weighted average exercise price

Less than $13.18		440	$	9.58		1,373	$	0.26		1,813	$	2.52
Above $13.18		-	$	-		-	$	-		-	$	-
Total		440	$	9.58		1,373	$	0.26		1,813	$	2.52

The Company’s aggregate equity-based compensation expense for the three months ended September 30, 2020 and 2019 totaled $2,433 and $1,873, respectively.

As of September 30, 2020, there was $9,132 of total unrecognized equity-based compensation expense related to unvested equity-based compensation awards granted under the Company’s equity incentive plans. This amount is expected to be recognized during the period from 2020 through 2024.