Equity (Deficit)

12 Months Ended

Dec. 31, 2021

Equity (Deficit)

Equity (Deficit)

Note 9. Equity (Deficit)

Equity Outstanding

The Company’s authorized capital stock includes 250,000,000 shares of common stock, $0.01 par value per share. The following table summarizes the changes in the number of outstanding common units and shares of common stock:

	Common Stock
Balance, December 31, 2019	37,566,540
Issuance of common stock	—
Restricted stock units vested	132,237
Shares withheld for taxes (1)	(35,268)
Balance, December 31, 2020	37,663,509
Issuance of common stock	—
Restricted stock units vested	77,985
Bonus stock awards (2)	455,973
Shares withheld for taxes (1)	(173,325)
Balance, December 31, 2021	38,024,142

(1) Represents the net settlement on vesting of restricted stock necessary to satisfy the minimum statutory tax withholding requirements.

(2) Reflects shares granted to certain executive officers and employees pursuant to the Company’s annual incentive bonus program. Shares were granted on February 12, 2021 at a grant price of $2.48 per share.

Warrants

Legacy Amplify entered into a warrant agreement (the “Warrant Agreement”) with American Stock Transfer & Trust Company, LLC, as warrant agent (“AST”), pursuant to which Legacy Amplify issued warrants to purchase up to 2,173,913 shares of Legacy Amplify’s common stock (representing 8% of Legacy Amplify’s outstanding common stock on May 4, 2017, including shares of Legacy Amplify’s common stock issuable upon full exercise of the warrants, but excluding any common stock issuable under the Legacy Amplify’s Management Incentive Plan), exercisable for a five year period commencing on May 4, 2017 at an exercise price of $42.60 per share. The warrants will expire on May 4, 2022.

The fair values for the warrants upon issuance were estimated using the Black-Scholes option pricing model using the following assumptions:

	Warrants Issued in
	Successor Period
Risk-free interest rate		2.06	%
Dividend yield		—
Expected life (in years)		5.0
Expected volatility		50.0	%
Strike Price	$	42.60
Calculated fair value	$	2.20

Cash Dividend Payment

On March 3, 2020, the Company’s board of directors approved a dividend of $0.10 per share of outstanding common stock or $3.8 million in aggregate, which was paid on March 30, 2020, to stockholders of record at the close of business on March 16, 2020. The board of directors subsequently suspended quarterly dividends. Future dividends, if any, are subject to debt covenants under the Revolving Credit Facility and discretionary approval by the board of directors.