General form of registration statement for all companies including face-amount certificate companies

SHARE-BASED COMPENSATION

v3.21.1
SHARE-BASED COMPENSATION
3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]    
SHARE-BASED COMPENSATION

During 2019 the Company’s Board of Directors adopted the 2019 Stock and Incentive Plan (the “Plan”), which was amended in April 2020. The Plan permits the issuance of stock options, stock appreciation rights, stock awards, share units, performance shares, performance units and other stock-based awards, and, as of March 31, 2021, 13.2 million shares have been authorized to be issued under the Plan and 4.12 million are available for future grant. The Plan provides for the grant of options as either non-statutory stock options or incentive stock options and restricted stock units to employees, officers, directors, and consultants of the Company to attract and retain persons of ability to perform services for the Company and to reward such individuals who contribute to the achievement by the Company of its economic objectives. The awards granted generally vest in 25% increments over a four-year period and option awards expire 6 years from grant date.

 

The Plan is administered by the Board or a committee appointed by the Board, which determines the persons to whom the awards will be granted, the type of awards to be granted, the number of awards to be granted, and the specific terms of each grant, including the vesting thereof, subject to the provisions of the Plan.

 

During the quarter ended March 31, 2021, the Company granted shares to certain employees as compensation for services. These shares were accounted for in accordance with ASC 718 – Compensation – Stock Compensation. The Company amortizes awards over the service period and until awards are fully vested.

 

For the quarters ended March 31, 2021, and March 31, 2020, share-based compensation expense recorded to the Company’ s consolidated statements of operations were:

 

Three Months Ended March 31,            
(in thousands)   2021     2020  
Cost of goods sold   $ -     $ -  
General and administrative expense     287       1,612  
Total share based compensation   $ 287     $ 1,612  

 

The following table summarizes the status of stock option grants and unvested awards as at and for the quarter ended March 31, 2021:

 

          Weighted-Average     Weighted-Average     Aggregate  
(in thousands except per share amounts)   Stock Options     Exercise Price     Remaining Contractual Life     Intrinsic Value  
Outstanding—December 31, 2020     6,260     $ 0.97       4.7     $ 3,162  
                                 
  Granted     1,630     $ 1.44                  
  Exercised     -       -                  
  Cancelled     (251 )   $ 1.76                  
Outstanding—March 31, 2021     7,639     $ 0.95       4.7          
                                 
Exercisable—March 31, 2021     924     $ 2.01       3.3     $ 142  
                                 
Vested and expected to vest—March 31, 2021     7,639     $ 0.95       4.7     $ 4,276  

 

The weighted-average fair value of each option granted during the quarter ended March 31, 2021, estimated as of the grant date, was $1.44. As of March 31, 2021, there was $2,044 of total unrecognized compensation cost related to nonvested options, which is expected to be recognized over a remaining weighted-average vesting period of xx years.

 

The following table summarizes the status of restricted stock unit grants and unvested awards as at and for the quarter ended March 31, 2021:

 

          Weighted-Average  
(in thousands except per share amounts)   RSUs     Fair Value  
             
Outstanding—December 31, 2020     450     $ 0.33  
                 
  Granted     1,295       1.14  
  Vested     -       -  
  Cancelled     10       -  
Outstanding—March 31, 2021     1,755     $ 0.93  

 

As of March 31, 2021, there was $644 of total unrecognized compensation cost related to nonvested restricted stock units, which is expected to be recognized over a remaining weighted-average vesting period of 16 months.

 

The fair value of the restricted stock units and stock options granted was determined using the Black-Scholes option-pricing model with the following weighted average assumptions at the time of grant.

 

Three Months Ended March 31,   2021     2020  
Expected volatility     50 %     50 %
Dividend yield     0 %     0 %
Risk-free interest rate     0.73 %     2.2 %
Expected term in years     4.25       10  

 

During 2019 the Company’s Board of Directors adopted the 2019 Stock and Incentive Plan (the “Plan”), which was amended in April 2020. The Plan permits the issuance of stock options, stock appreciation rights, stock awards, share units, performance shares, performance units and other stock-based awards, and, as of December 31, 2020, 8.2 million shares have been authorized to be issued under the Plan and 1.85 million are available for future grant. The Plan provides for the grant of options as either non-statutory stock options or incentive stock options and restricted stock units to employees, officers, directors, and consultants of the Company to attract and retain persons of ability to perform services for the Company and to reward such individuals who contribute to the achievement by the Company of its economic objectives. The awards granted generally vest in 25% increments over a four-year period and option awards expire 6 years from grant date.

 

The Plan is administered by the Board or a committee appointed by the Board, which determines the persons to whom the awards will be granted, the type of awards to be granted, the number of awards to be granted, and the specific terms of each grant, including the vesting thereof, subject to the provisions of the Plan.

 

During the year ended December 31, 2020, the Company granted shares to certain employees as compensation for services. These shares were accounted for in accordance with ASC 718 – Compensation – Stock Compensation. The Company amortizes awards over the service period and until awards are fully vested.

 

For the years ended December 31, 2020, 2019 and 2018, share-based compensation expense recorded to the Company’ s consolidated statements of operations were:

 

(Amounts Expressed in United States Dollars Unless Otherwise Stated)

 

Years Ended December 31,      
(in thousands)   2020     2019     2018  
Cost of goods sold   $ -     $ -     $ -  
General and administrative expense     2,200       3,385       270  
Total share based compensation   $ 2,200     $ 3,385     $ 270  

 

The following table summarizes the status of stock option grants and unvested awards as at and for the year ended December 31, 2020:

 

                Weighted-Average        
    Stock     Weighted-Average     Remaining     Aggregate  
(in thousands except per share amounts)   Options     Exercise Price     Contractual Life     Intrinsic Value  
Outstanding—December 31, 2019     1,543     $ 2.53       4.3     $ -  
                                 
  Granted     5,315       0.62                  
  Exercised     -       -                  
  Cancelled     (598 )     1.67                  
Outstanding—December 31, 2020     6,260     $ 0.97       4.7     $ 3,162  
                                 
Exercisable—December 31, 2020     739     $ 2.10       3.2     $ 25  
                                 
Vested and expected to vest—December 31, 2020     6,260     $ 0.97       4.7     $ 3,162  

 

 

The weighted-average fair value of each option granted during fiscal 2020, estimated as of the grant date, was $.25. As of December 31, 2020, there was $1,928 of total unrecognized compensation cost related to nonvested options, which is expected to be recognized over a remaining weighted-average vesting period of 4.7 years.

 

The following table summarizes the status of restricted stock unit grants and unvested awards as at and for the year ended December 31, 2020:

 

    Restricted        
    Stock     Weighted-Average  
(in thousands except per share amounts)   Units     Fair Value  
Outstanding—December 31, 2019     230     $ 2.53  
                 
  Granted     913       0.62  
  Vested     (634 )     1.63  
  Cancelled     (59 )     1.67  
Outstanding—December 31, 2020     450     $ 0.33  

  

As of December 31, 2020, there was $81 of total unrecognized compensation cost related to nonvested restricted stock units, which is expected to be recognized over a remaining weighted-average vesting period of 10 months.

 

The fair value of the restricted stock units and stock options granted was determined using the Black-Scholes option-pricing model with the following weighted average assumptions at the time of grant.

 

Year Ended December 31,

  2020  
Expected volatility     50.0 %
Dividend yield     0 %
Risk-free interest rate     0.95 %
Expected term in years     6.0