Note 11 - Equity-based Compensation

Restricted Stock Awards

On February 23, 2018, the Company granted to certain employees an aggregate of 126,000 restricted shares of common stock at a purchase price of $0.04 per share. The Company recorded proceeds of $5,000 from the sale of these restricted shares, which were issued from treasury shares. The Company recorded a reduction to additional paid-in capital of approximately $0.5 million representing the cost of treasury shares issued in excess of the purchase price paid by awardees.

Half of the shares granted vested on the award date and the remaining 50% of the shares vest on July 1, 2018, subject to continuous employment. The grant date fair value of the shares was estimated to be $7.78 per share.

During the three and nine months ended June 30, 2018, the Company recorded compensation expense in connection with these grants in the amount of $0.4 million and $1.0 million, respectively, which is reflected as general and administrative expenses on the Company’s Consolidated Statements of Income. At June 30, 2018, there was no unrecognized compensation expense related to these awards.