Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.22.1
Stock-Based Compensation
3 Months Ended
Mar. 31, 2022
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation STOCK-BASED COMPENSATION
The Company maintains, as approved by the board of directors, the 2019 Stock Incentive Plan (the “Plan”) providing for the issuance of stock-based awards to employees, officers, directors or consultants of the Company. Non-qualified stock options may only be granted with an exercise price equal to the market value of the Company’s common stock on the grant date. Awards under the Plan may be either vested or unvested options, or unvested restricted stock. The Plan has authorized 8.0 million shares for issuance of stock-based awards. As of March 31, 2022 there were approximately 2.3 million shares available for issuance of future stock awards, respectively, which includes shares available under the 2019 and 2017 incentive plans.
Stock-based compensation expense
The following table summarizes stock-based compensation expense:

Three Months Ended March 31,
2022 2021
Stock options $ 232,378  $ 70,412 
Restricted stock awards 1,679,244  822,016 
Performance-based restricted stock awards 438,671  — 
Total stock-based compensation expense $ 2,350,293  $ 892,428 
Stock options
A summary of stock option activity for the three months ended March 31, 2022 is as follows:

Number of Options Weighted
Average
Exercise Price
per Option
Weighted
Average
Remaining
Contractual Life
(Years)
Balance, December 31, 2021 495,836  $ 6.80  6.5
Exercised (3,254) 1.81 
Balance, March 31, 2022 492,582  $ 6.78  6.3
Number of options exercisable at March 31, 2022 231,683  $ 3.45  2.8

As of March 31, 2022, unrecognized compensation expense was $2.4 million for unvested options which is expected to be recognized over the next 2.4 years.

Restricted stock awards
A summary of restricted stock award activity for the three months ended March 31, 2022 is as follows:

Number of Unvested Shares Weighted Average Grant Date Fair Value per Share
Balance, December 31, 2021 1,617,192  $ 9.33 
Granted 2,422,809  3.10 
Vested (127,957) 10.41 
Forfeited (26,700) 5.51 
Balance, March 31, 2022 3,885,344  $ 5.43 

As of March 31, 2022, unrecognized compensation expense was $19.0 million for unvested restricted stock awards which is expected to be recognized over the next 2.5 years.

Total shareholder return target performance share units (TSR PSUs)
A summary of the TSR PSU award activity for the three months ended March 31, 2022 is as follows:
Number of Unvested Shares Weighted Average Grant Date Fair Value per Share
Balance, December 31, 2021 306,197  $ 11.79 
Granted(1)
420,170  11.79 
Balance, March 31, 2022 726,367  $ 11.79 
(1) On February 23, 2022, the Company issued an additional 0.4 million TSR PSUs to certain executives. Vesting is based upon the Company’s total shareholder return as compared to a group of peer companies over a 3-year performance period. The TSR PSUs vest only upon the achievement of the applicable performance conditions for the performance period, and depending on the actual achievement on the performance conditions, the grantee may earn between 0% and 200% of the target TSR PSUs. The grant date fair value of $11.79 per TSR PSU was estimated using a Monte-Carlo simulation model using a volatility assumption of 117% and risk-free interest rate of 0.69%.
As of March 31, 2022, unrecognized compensation expense was $7.9 million for unvested TSR PSUs, which is expected to be recognized over the next 2.8 years.
EBITDA target performance share units (EBITDA PSUs)
On February 23, 2022, the Company issued 0.4 million EBITDA PSUs. Vesting is based upon the Company’s performance, over a performance period ending December 31, 2024, on certain measures including a cumulative adjusted EBITDA target. The EBITDA PSUs vest only upon the achievement of the applicable performance conditions for the performance period, and depending on the actual achievement on the performance conditions, the grantee may earn between 0% and 200% of the target EBITDA PSUs. The fair value of performance share units is calculated based on the stock price on the date of grant.
The stock-based compensation expense recognized each period is dependent upon our estimate of the number of shares that will ultimately vest based on the achievement of EBITDA-based performance conditions. Future stock-based compensation expense for unvested EBITDA PSUs will be based on the fair value of the awards as of the grant date, which has not yet occurred, as the cumulative adjusted EBITDA target condition is not yet defined.