Quarterly report pursuant to Section 13 or 15(d)

Management Incentive Plans

v3.10.0.1
Management Incentive Plans
9 Months Ended
Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Management Incentive Plan Disclosure [Text Block]
Note 17 – Management Incentive Plans
 
Upon approval of the Business Combination, the Company adopted the Limbach Holdings, Inc. Omnibus Incentive Plan (the “2016 Plan”). Certain employees, directors and consultants will be eligible to be granted awards under the 2016 Plan, other than incentive stock options, which may be granted only to employees. The Company has reserved 800,000 shares of its common stock for issuance under the 2016 Plan, as may be adjusted for stock splits, stock dividends, and similar changes in the Company’s common stock. In connection with an event determined to constitute a change in control, the plan administrator may accelerate the vesting of awards previously granted. All awards are made in the form of shares only.
 
Service-Based Awards
 
In 2018, the Company granted 81,267 service-based RSUs to its executives, certain employees, and non-employee directors under the 2016 Plan.
 
The following table summarizes our service-based RSU activity for the nine months ended September 30, 2018:
 
 
 
Awards
 
 
Weighted-Average
Grant Date
Fair Value
 
Unvested at December 31, 2017
 
 
176,965
 
 
$
13.25
 
Granted
 
 
81,267
 
 
 
13.38
 
Vested
 
 
(74,951
)
 
 
13.25
 
Forfeited
 
 
(5,167
)
 
 
13.25
 
Unvested at September 30, 2018
 
 
178,114
 
 
$
13.31
 
 
Performance-Based Awards
 
In 2018, the Company granted 61,000 performance-based RSUs (“PRSUs”) to its executives and certain employees under the 2016 Plan. The Company will recognize stock-based compensation expense for these awards over the vesting period based on the projected probability of achievement of certain performance conditions as of the end of each reporting period during the performance period and may periodically adjust the recognition of such expense, as necessary, in response to any changes in the Company’s forecasts with respect to the performance conditions. For the three and nine months ended September 30, 2018, the Company did not recognize any stock-based compensation expense related to these awards or to the awards that were granted on August 30, 2017.
 
The following table summarizes our PRSU activity for the nine months ended September 30, 2018:
 
 
 
Awards
 
 
Weighted-Average
Grant Date
Fair Value
 
Unvested at December 31, 2017
 
 
66,500
 
 
$
13.25
 
Granted
 
 
61,000
 
 
 
13.47
 
Vested
 
 
-
 
 
 
-
 
Forfeited
 
 
(3,750
)
 
 
13.25
 
Unvested at September 30, 2018
 
 
123,750
 
 
$
13.36
 
 
Market-Based Awards
 
The following table summarizes our market-based RSU activity for the nine months ended September 30, 2018:
 
 
 
Awards
 
 
Weighted-
Average
Grant
Date
Fair Value
 
Unvested at December 31, 2017
 
 
146,500
 
 
$
6.58
 
Granted
 
 
-
 
 
 
-
 
Vested
 
 
-
 
 
 
-
 
Forfeited
 
 
(6,000
)
 
 
6.58
 
Unvested at September 30, 2018
 
 
140,500
 
 
$
6.58
 
 
Total recognized stock-based compensation expense amounted to $0.6 million and $1.7 million for the three and nine months ended September 30, 2018, respectively. Total unrecognized stock-based compensation expense related to unvested RSUs which are probable of vesting was $1.6 million at September 30, 2018. These costs are expected to be recognized over a weighted average period of 1.6 years.