Quarterly report pursuant to Section 13 or 15(d)

Stock Options, Warrants and Restricted Common Stock

v3.21.1
Stock Options, Warrants and Restricted Common Stock
3 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement [Abstract]  
Stock Options, Warrants and Restricted Common Stock

Note 9. Stock Options, Warrants and Restricted Common Stock

Stock-Based Compensation:

The Company’s stock-based compensation expenses recognized during the three months ended March 31, 2021 and 2020 were attributable to selling, general and administrative expenses, which are included in the accompanying unaudited condensed interim consolidated statements of operations.

The Company recognized stock-based compensation expense during the three months ended March 31, 2021 and 2020 totaling $936 and $1,914, respectively, granted under the 2019 Equity Plan, for restricted stock awards.

Restricted Common Stock Awards:

A summary of the Company’s unvested restricted common stock awards activity in the three months ended March 31, 2021 is presented here:

Number of Shares

Weighted Average

Grant-Date

Fair Value

Unvested at January 1, 2021

633,305

$

1.27

Vested

(125,624

)

$

5.24

Granted

86,440

$

37.15

Unvested at March 31, 2021

594,121

$

5.62

During the three months ended March 31, 2021, the Company awarded 86,440 restricted shares of common stock under the 2019 Equity Plan to directors, employees and advisors, which are generally eligible to vest over a one-year period.

The value of restricted common stock grants is measured based on their fair market value on the date of grant and amortized over their respective vesting periods. During the three months ended March 31, 2021, the fair market value of awards granted totaled $3.2 million and as of March 31, 2021, there was approximately $2.5 million of total unrecognized compensation cost related to unvested restricted common stock rights, which is expected to be recognized over a remaining weighted-average vesting period of approximately six months.

Stock Incentive Plan Options:

As of March 31, 2021, 12,000 stock options were outstanding, with a weighted average exercise price of $4.09, and a weighted average remaining contractual term of approximately 2.5 years, which were originally issued in 2017 under the Company’s then-effective 2017 Equity Incentive Plan and which are eligible to be settled, upon payment of the exercise price, under the 2019 Equity Plan. The stock options are 100% vested with an intrinsic value of approximately $0.6 million.

Other Common Stock Purchase Warrants:

Following is a summary of outstanding warrants (issued in connection with previously disclosed private placement transactions in 2019 and 2017) for the three months ended March 31, 2021:

Shares

Underlying

Options/Warrants

Weighted

Average

Exercise Price

Weighted

Average

Remaining

Contractual

Term (Years)

Aggregate

Intrinsic Value

Outstanding and exercisable at January 1, 2021

2,061,770

$

32.33

1.1

$

6,256

Exercised

(1,672,892

)

$

1.94

-

$

-

Outstanding and exercisable at March 31, 2021

388,878

$

40.00

0.2

$

5,160

The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the Company’s closing stock price on March 31, 2021 and the exercise price, multiplied by the number of in-the-money warrants) that would have been received by the warrant holders, had all warrant holders exercised their warrants on March 31, 2021.