Quarterly report pursuant to Section 13 or 15(d)

Equity

v3.7.0.1
Equity
6 Months Ended
Jun. 30, 2017
Equity [Abstract]  
Equity

Note 10. Equity

2017 Equity Incentive Plan

In 2017, the Company adopted the 2017 Equity Incentive Plan. The maximum number of shares of common stock reserved for issuance under the plan is 1,250 shares. The total number of shares reserved for issuance however, can be adjusted to reflect certain corporate transactions or changes in the Company’s capital structure. The Company’s employees and members of the board of directors who are not our employees or employees of our affliliates are eligible to participate in the plan. The plan is administered by the compensation committee of the board. The plan provides that the committee has the authority to, among other things, select plan participants, determine the type and amount of rewards, determine the award terms, fix all other conditions of any awards, interpret the plan and any plan awards. Under the plan, the committee can grant stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and performance units. The plan requires that the exercise price for stock options and stock appreciation rights be not less then fair market value of the Company’s common stock on date of grant.

The Company awarded under the 2017 Equity Incentive Plan a total of 104 restricted stock units to employees and directors on June 2, 2017. The restricted stock units are subject to the same conditions as the restricted stock awards except the restricted stock units will not have voting rights and the common stock will not be issued until the vesting criteria are satisfied.

The following table contains information regarding restricted stock units:

 

June 30, 2017

 

Outstanding on January 1, 2017

 

-

 

Units granted during the period

 

104

 

Vested and issued

 

-

 

Forfeited

 

-

 

Outstanding on June 30, 2017

 

104

 

 

On June 2, 2017, the Company granted an aggregate of 53 restricted stock units to employees pursuant to the Company’s 2017 Equity Incentive Plan. Restricted stock units of 9, 24 and 20 vest in 2017, 2018 and 2019, respectively.

On June 2, 2017, the Company granted 51 restricted stock units to officers pursuant to the Company’s 2017 Equity Incentive Plan. Restricted stock units of 17, 17 and 17 vest on June 2, 2018, 2019 and 2020, respectively.

The value of the restricted stock is being charged to compensation expense over the vesting period. Compensation expense includes expense related to restricted stock units of $89 and $0 for the three and $135 and $0 for the six months ended June 30, 2017 and 2016, respectively. Additional compensation expense related to restricted stock units will be $161, $285, $212 and $58 for the remainder of 2017, 2018, 2019 and 2020, respectively.