Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation

v3.21.1
Stock Based Compensation
3 Months Ended
Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock Based Compensation

Note 6 – Stock-Based Compensation

Equity Incentive Plans

2013 Equity Incentive Plan

Effective on May 26, 2020, the Company’s stockholders approved the amendment and restatement of the 2013 Equity Incentive Plan to increase the number of shares reserved for issuance thereunder by 1,200,000 shares, bringing to 7,285,967 the total number of shares approved for issuance under that plan. 

As of March 31, 2021, 930,611 shares of common stock remain eligible to be issued through equity-based instruments under the 2013 Equity Incentive Plan.

2014 Non-Employee Equity Compensation Plan

Effective on May 26, 2020, the Company’s stockholders approved the amendment and restatement of the 2014 Non-employee Equity Compensation Plan to increase the number of shares reserved for issuance through equity-based instruments thereunder by 800,000 shares, bringing to 1,650,000 the total number of shares approved for issuance under that plan.

Note 6 – Stock-Based Compensation, continued

Equity Incentive Plans, continued

As of March 31, 2021, 873,971 shares of common stock remain eligible to be issued through equity-based instruments under the 2014 Non-Employee Equity Compensation Plan.

2015 Performance Share Unit Plan

Effective on May 26, 2020, the Company’s stockholders approved the amendment and restatement of the 2015 Performance Share Unit Plan to increase the number of shares reserved for issuance through equity-based instruments thereunder by 700,000 shares, bringing to 3,410,104 the total number of shares approved for issuance under that plan.

 

As of March 31, 2021, 681,238 shares of common stock remain eligible to be issued through equity-based instruments under the 2015 Performance Share Unit Plan.

 

2017 Equity Inducement Plan

 

On December 28, 2017, the Board approved the 2017 Equity Inducement Plan. Under the plan, the Board reserved 600,000 shares for the grant of RSUs. These grants will be administered by the Board or a committee of the Board. These awards will be granted to individuals who (a) are being hired as an employee by the Company or any subsidiary and such award is a material inducement to such person being hired; (b) are being rehired as an employee following a bona fide period of interruption of employment with the Company or any subsidiary; or (c) will become an employee of the Company or any subsidiary in connection with a merger or acquisition.

 

As of March 31, 2021, 143,336 shares of common stock remain available to be issued through equity-based instruments under the 2017 Equity Inducement Plan.

Employee Stock Purchase Plan

In April 2015, the Company’s Board approved the ESPP, under which 600,000 shares of common stock have been reserved for purchase by the Company’s employees, subject to the approval by the stockholders. On May 21, 2015, the Company’s stockholders approved the ESPP. Effective on May 26, 2020, the Company’s stockholders approved the amendment and restatement of the Employee Stock Purchase Plan to increase the number of shares reserved for issuance through equity-based instruments thereunder by 250,000 shares, bring to 850,000 the total number of shares approved for issuance under that plan. Under the ESPP, employees may designate an amount not less than 1% but not more than 10% of their annual compensation for the purchase of Company shares. No more than 7,500 shares may be purchased by an employee under the ESPP during an offering period. An offering period shall be six months in duration commencing on or about January 1 and July 1 of each year. The exercise price of the option will be the lesser of 85% of the fair market of the common stock on the first business day of the offering period and 85% of the fair market value of the common stock on the applicable exercise date.

As of March 31, 2021, 140,438 shares of common stock remain eligible to be issued under the ESPP. Employees contributed $117,013 through payroll withholdings as of March 31, 2021 to the ESPP for the current offering period that will end on June 30, 2021 and shares will be deemed delivered on that date.

Note 6 – Stock-Based Compensation, continued

Stock Option Activity

The following is a summary of the Company’s stock option activity during the three months ended March 31, 2021:

 

 

 

Number of

Options

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining

Life In

Years

 

 

Intrinsic

Value

 

Outstanding at January 1, 2021

 

 

550,985

 

 

$

5.67

 

 

 

3.2

 

 

$

3,384

 

Granted

 

 

 

 

 

 

 

 

 

 

 

 

Exercised

 

 

 

 

 

 

 

 

 

 

 

 

Forfeited

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at March 31, 2021

 

 

550,985

 

 

$

5.67

 

 

 

2.9

 

 

$

78,694

 

Exercisable at January 1, 2021

 

 

550,985

 

 

$

5.67

 

 

 

3.2

 

 

$

3,384

 

Vested

 

 

 

 

 

 

 

 

 

 

 

 

Exercised

 

 

 

 

 

 

 

 

 

 

 

 

Forfeited

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at March 31, 2021

 

 

550,985

 

 

$

5.67

 

 

 

2.9

 

 

$

78,694

 

 

As of March 31, 2021, the unamortized value of options was $0.

 

 

Restricted Stock Units (“RSUs”)

During the three months ended March 31, 2021, the Compensation Committee granted various employees RSUs covering 941,635 shares of common stock under the 2013 Equity Incentive Plan. The awards vest over terms ranging from two to three years.

During the three months ended March 31, 2021, the Compensation Committee and the Board of Directors granted various non-employees RSUs covering 125,000 shares of common stock under the 2014 Non-employee Equity Compensation Plan. The awards vest over one year.

 

 

As of March 31, 2021, the unamortized value of the RSUs was $6,355,220. The unamortized amount will be expensed over a weighted average period of 1.6 years. A summary of the activity related to RSUs for the three months ended March 31, 2021 is presented below:

 

 

 

Total

 

 

Weighted

Average

Grant

Date Fair

Value

 

Outstanding at January 1, 2021

 

 

1,421,168

 

 

$

6.43

 

RSUs granted

 

 

1,066,635

 

 

$

3.81

 

RSUs forfeited

 

 

(9,137

)

 

$

9.97

 

RSUs vested

 

 

(627,412

)

 

$

7.33

 

Outstanding at March 31, 2021

 

 

1,851,254

 

 

$

4.60

 

 

 

 

Note 6 – Stock-Based Compensation, continued

 

Performance Share Units (“PSUs”)

Performance share units (“PSUs”) are grants that vest upon the achievement of certain performance goals. The goals are commonly related to the Company’s revenue, market capitalization or market share price of the common stock.

During the three months ended March 31, 2021, the Compensation Committee of the Board of Directors granted various employees PSUs covering 1,450,713 shares of common stock under the Company’s 2015 Performance Share Unit Plan.

Amortization for all PSU awards was $0 and $(88,348) for the three months ended March 31, 2021 and 2020, respectively.

A summary of the activity related to PSUs for the three months ended March 31, 2021 is presented below:

 

 

 

Total

 

 

Weighted

Average Grant

Date Fair Value

 

Outstanding at January 1, 2021

 

 

 

 

$

 

PSUs granted

 

 

1,450,713

 

 

 

4.51

 

PSUs forfeited

 

 

 

 

 

 

PSUs vested

 

 

 

 

 

 

Outstanding at March 31, 2021

 

 

1,450,713

 

 

 

4.51

 

 

Employee Stock Purchase Plan (“ESPP”)

The current offering period under the ESPP started on January 1, 2021 and will conclude on June 30, 2021. During the year ended December 31, 2020, there were two offering periods. The first offering period began January 1, 2020 and concluded on June 30, 2020. The second offering period began on July 1, 2020 and concluded on December 31, 2020.

The weighted-average grant-date fair value of the purchase option for each designated share purchased under this plan was approximately $0.75 and $0.57 for the three months ended March 31, 2021 and 2020, respectively, which represents the fair value of the option, consisting of three main components: (i) the value of the discount on the enrollment date, (ii) the proportionate value of the call option for 85% of the stock and (iii) the proportionate value of the put option for 15% of the stock. The Company recognized compensation expense for the plan of $57,316 and $42,827 for the three months ended March 31, 2021 and 2020, respectively.

The Company estimated the fair value of ESPP purchase options granted during the three months ended March 31, 2021 and 2020 using the Black-Scholes option pricing model. The fair values of stock options granted were estimated using the following assumptions:

 

 

 

Three Months Ended

March 31, 2021

 

 

Three Months Ended

March 31, 2020

 

Stock price

 

$

1.80

 

 

$

1.77

 

Dividend yield

 

 

0%

 

 

 

0%

 

Expected volatility

 

 

95

%

 

 

61

%

Risk-free interest rate

 

 

0.09

%

 

 

1.57

%

Expected life

 

6 months

 

 

6 months

 

 

 

 

Note 6 – Stock-Based Compensation, continued

 

Stock-Based Compensation Expense

The following tables summarize total stock-based compensation costs recognized for the three months ended March 31, 2021 and 2020:

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

RSUs

 

 

2,088,910

 

 

$

2,321,820

 

PSUs

 

 

 

 

 

(88,348

)

ESPP

 

 

57,316

 

 

 

42,827

 

Total

 

$

2,146,226

 

 

$

2,276,299

 

 

The total amount of stock-based compensation was reflected within the statements of operations as:

 

 

 

Three Months Ended September 30,

 

 

 

2021

 

 

2020

 

Research and development

 

$

1,149,277

 

 

$

1,100,978

 

Sales and marketing

 

 

448,947

 

 

 

364,458

 

General and administrative

 

 

548,002

 

 

 

810,863

 

Total

 

$

2,146,226

 

 

$

2,276,299