Stock-based Compensation

6 Months Ended

Jun. 30, 2021

Stock-based Compensation [Abstract]

Stock-based Compensation

Note 11

Stock-based Compensation:

As of June 30, 2021, the Company had options to purchase 6,925,478 shares of common stock outstanding with a weighted-average exercise price of $1.83. As of June 30, 2021, options to purchase 4,510,555 shares are vested and exercisable. On July 7, 2021, the shareholders approved an amendment to the 2016 Omnibus Incentive Plan to increase the number of shares of common stock for issuance by 2,700,000 and therefore there are 2,741,774 shares remaining available for issuance in the form of future equity awards. There were 71,934 restricted stock units vested and unissued as of March 31, 2021, which were all issued in April and May 2021.

Stock-based compensation expense, which is included in general and administrative expense, for the three and six months ended June 30, 2021 and 2020, was $581 and $1,243, and $410 and $840 respectively. As of June 30, 2021, there was $2,641 in unrecognized compensation expense, which will be recognized over a weighted average period of 1.28 years.

On February 28, 2021, in connection with the separation of the Company’s Chief Executive Officer, the Company accelerated the vesting of all unvested options to purchase shares of common stock and extended the period to exercise to August 22, 2021. This acceleration and the extension of the period to vest met the modification criteria for accounting purposes. For these modifications, the Company calculated and recorded the additional compensation expense of $173.

On March 1, 2021, the Company granted an option to purchase 1,632,590 shares of common stock to its incoming Chief Executive Officer with a strike price of $1.73 vesting over a three year period, with 544,198 options vesting on the first anniversary of the date of the grant and 136,049 vesting every three months thereafter subject to acceleration of vesting under certain circumstances and expire ten years form the date of the grant. The aggregate fair value of the options granted was $2,103.

In July 2021, the Company issued 128,373 restricted stock units to the board of directors with a fair value of $182, which vested immediately and was related to compensation from June 2020 through July 2021. In addition, the Company issued 149,281 restricted stock units with a fair value of $212, which vest quarterly from June 1, 2021 through June 2022 and issued 20,000 restricted stock units, with a fair value of $28, to a new board member which vest quarterly from April 2021 to April 2022.