Stock-based Compensation

Stock-based compensation expense is included in general and administrative expenses in the condensed consolidated statements of operations. We recognized $2.3 million and $2.1 million of stock-based compensation expense related to stock options and restricted stock awards for the three months ended December 31, 2019 and December 31, 2018, respectively.

Stock Options

Following is a summary of stock option activity for the three months ended December 31, 2019:



	Three Months Ended
	December 31, 2019
	Shares		Weighted Average Exercise Price
Outstanding at beginning of period	523,754		$	14.34
Granted	—		—
Exercised	(123,367	)	11.08
Cancelled	(100	)	15.47
Outstanding at end of period	400,287		$	15.35
Exercisable at end of period	363,931		$	15.64
Vested or expected to vest in the future	398,358		$	15.38

As of December 31, 2019 and September 30, 2019, total unrecognized compensation cost related to unvested stock options was $0.1 million and $0.1 million, respectively. The remaining cost as of December 31, 2019 is expected to be recognized over a weighted-average period of 0.95 years.

Restricted Stock Awards

During the three months ended December 31, 2019, the Company issued time-based restricted stock awards that vest ratably over three years on each anniversary from the grant date and performance-based restricted stock awards with a payout subject to the achievement of performance and market conditions over a three-year period.

Following is a summary of restricted stock activity for the three months ended December 31, 2019:



	Three Months Ended December 31, 2019
	Performance-Based Restricted Shares		Time-Based Restricted Shares		Total Restricted Shares
Beginning of period	778,814		611,607		1,390,421
Granted	260,131		313,829		573,960
Vested	(242,921	)	(289,648	)	(532,569	)
Forfeited	—		(1,202	)	(1,202	)
End of period	796,024		634,586		1,430,610

Each of our performance-based restricted share represents a contingent right to receive one share of the Company's common stock if vesting is satisfied at the end of the three-year performance period. Our performance stock award plans provide that any performance shares earned in excess of the target number of performance shares issued may be settled in cash or additional shares at the discretion of the Compensation Committee. During the three months ended December 31, 2019, we cash settled 135,337 shares earned above target level based on the performance level achieved under our 2017 performance-based award plan. The cash payment totaled $2.1 million, which was reflected as a reduction to paid-in capital in the accompanying condensed consolidated statements of stockholders' equity. We have not cash settled any such performance-based awards in the past, and we have no current plans to cash settle any additional performance-based restricted shares in the future.

As of December 31, 2019 and September 30, 2019, total unrecognized compensation cost related to unvested restricted stock awards was $16.0 million and $9.0 million, respectively. The remaining cost as of December 31, 2019 is expected to be recognized over a weighted average period of 2.15 years.