Stock-Based Compensation and Stockholders' Equity

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Stock-Based Compensation and Stockholders' Equity

Stock-Based Compensation and Stockholders' Equity

Stock Options

During the three months ended March 31, 2022, the Company issued an aggregate of 82,810 shares of common stock to employees upon the exercise of options previously granted under the 2016 and 2020 Stock Incentive Plan(s) at exercise prices ranging from $3.68 to $13.82 per share.

During the three months ended March 31, 2021, the Company issued an aggregate of 215,544 shares of common stock to employees upon the exercise of options previously granted under the 2016 Stock Incentive Plan at exercise prices ranging from $3.68 to $13.82 per share.

Stock-based compensation expense recognized for stock option awards was $1.6 million and $1.7 million during the three months ended March 31, 2022 and 2021, respectively.

Employee Stock Purchase Plan

The 2021 Employee Stock Purchase Plan (“ESPP”) was approved by the Company's board of directors on September 10, 2020 and became effective on September 23, 2020. Under the ESPP, eligible employees may purchase a limited number of shares of our common stock at the lesser of 85% of the market value at the beginning of the offering period or 85% of the market value at the end of the offering period. The ESPP is intended to enable eligible employees to use payroll deductions to purchase shares of stock in offerings under the plan, and thereby acquire an interest in the Company. The maximum aggregate number of shares of stock available for purchase under the plan by eligible employees is 2,000,000 shares. No shares were issued through the ESPP during the three months ended March 31, 2022 or 2021. Stock-based compensation expense recognized for the ESPP was $0.4 million and $0.3 million during the three months ended March 31, 2022 and 2021, respectively.

Stock-Based Compensation Expense

The following table sets forth stock-based compensation expense recognized by the Company in the following line items in the Company's consolidated statements of operations and comprehensive income during the periods presented:

	Three Months Ended March 31,
(in thousands)	2022		2021
Cost of services	$	76	$	81
Sales and marketing	769		832
General and administrative	1,083		1,058
Stock-based compensation expense	$	1,928	$	1,971

Stock Warrants

As of March 31, 2022 and December 31, 2021, the Company had 9,432,064 fully vested outstanding warrants. As of March 31, 2022 and December 31, 2021, the holders of such warrants are entitled to purchase, in the aggregate, up to 5,240,035 shares of common stock. Warrants can be exercised at a strike price of $24.39 per common share. The warrants were issued in 2016 upon the Company's emergence from its pre-packaged bankruptcy. These warrants expire on August 15, 2023.

No warrants were exercised during the three months ended March 31, 2022. During the three months ended March 31, 2021, 200 warrants were exercised.

On May 3, 2022, the Compensation Committee of the Company’s Board of Directors approved a form of award agreement (the “RSU Award Agreement”) for grants of restricted stock units (“RSUs”) and a form of award agreement (the “PSU Award Agreement”) for grants of performance-based restricted stock units (“PSUs”), each under the Company’s 2020 Incentive Award Plan (the “2020 Plan”). Pursuant to the RSU Award Agreement, each RSU will entitle the recipient to one share of the Company’s common stock, subject to time-based vesting conditions that will be set forth in individual agreements. Pursuant to the PSU Award Agreement, each PSU will entitle the recipient to one share of the Company’s common stock, subject to performance-based vesting conditions that will be set forth in individual agreements.