Stock-based Compensation

3 Months Ended

Mar. 31, 2022

Note 10

Stock-based Compensation:

The Company’s 2016 Omnibus Incentive Stock Plan (“2016 Plan”), as amended, has reserved up to 7,832,651 shares of common stock for future issuance. As of March 31, 2022, there were 3,412,029 shares of common stock remaining available for issuance for awards under the 2016 Plan.

The Company measures stock‑based awards at their grant‑date fair value and records compensation expense on a straight‑line basis over the requisite service period of the awards. The Company recorded stock‑based compensation expense of $368 and $662 for the three months ended March 31, 2022 and 2021, respectively, and within general and administrative expenses in the accompanying condensed consolidated statements of operations.

Stock Options

The following table summarizes stock option activity for the three months ended March 31, 2022:

	Number of shares			Weighted average exercise price per share		Weighted average remaining contractual term (years)
Outstanding at January 1, 2022		3,938,613		$	1.90
Granted		860,000		$	1.45
Exercised		(15,000	)	$	1.29
Forfeited and expired		(348,899	)	$	2.97
Outstanding at March 31, 2022		4,434,714		$	1.73		8.8
Exercisable at March 31, 2022		1,396,863		$	1.94		7.5

The weighted‑average grant date fair value of options granted was $1.09 per share during the three months ended March 31, 2022. As of March 31, 2022, the total unrecognized compensation expense related to unvested stock option awards was $3,393, which the Company expects to recognize over a weighted‑average period of approximately 2.6 years. The aggregate intrinsic value of options outstanding and options exercisable at March 31, 2022 was $39 and $1, respectively.

For the three months ended March 31, 2022, the fair value of each option was estimated on the date of grant using the weighted average assumptions in the table below:

Expected volatility	89.6	%
Risk‑free interest rate	2.4	%
Expected life (in years)	6.1
Expected dividend yield	0.0	%

On March 30, 2022, the Company granted 160,000 stock-based options to the Chief Executive Officer. The vesting of these awards is contingent upon meeting one or more financial goals (a performance condition) or a common stock share price (a market condition). The fair value of stock-based awards is determined at the date of grant. Stock-based compensation expense is recorded ratably for market condition awards during the requisite service period and is not reversed, except for forfeitures, at the vesting date regardless of whether the market condition is met. Stock-based compensation expense for performance condition awards is re-evaluated at each reporting period based on the probability of the achievement of the goal. Stock-based compensation expense related to these options is nominal for the three months ended March 31, 2022.

Restricted Stock Units

Restricted stock units have been issued to certain board members. Restricted stock units unvested are summarized in the following table:

	Number of shares			Weighted average grant date fair value
Unvested at January 1, 2022		90,540		$	1.45
Granted		9,141		$	1.47
Vested		(10,000	)	$	1.45
Unvested at March 31, 2022		89,681		$	1.45

As of March 31, 2022, the total unrecognized compensation expense related to unvested restricted stock units was $35, which the Company expects to recognize over a weighted‑average period of approximately 0.3 years.