Stock-Based Compensation and Stockholders' Equity

9 Months Ended

Sep. 30, 2021

Stock-Based Compensation and Stockholders' Equity

Stock Options

During the nine months ended September 30, 2021, the Company issued an aggregate of 333,025 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 $4.8 million during the three and nine months ended September 30, 2021, respectively, compared to stock-based compensation expense $1.3 million and benefit of $4.2 million recognized during the three and nine months ended September 30, 2020, 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. A total of 149,865 shares were issued through the ESPP during the nine months ended September 30, 2021. No shares were issued through the ESPP during the three months ended September 30, 2021. The stock-based compensation expense recognized for the ESPP was $0.8 million and $1.4 million during the three and nine months ended September 30, 2021, respectively.

Stock-Based Compensation Expense

The following table sets forth stock-based compensation expense (benefit), including the effects of gains and losses from changes in fair value during the three and nine months ended September 30, 2020, recognized by the Company in the following line items in the Company's consolidated statements of operations during the periods presented:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2021		2020		2021		2020
Cost of services	$	156	$	70	$	320	$	(176)
Sales and marketing	1,060		349		2,686		30
General and administrative	1,124		870		3,226		(4,049)
Stock-based compensation expense (benefit)	$	2,340	$	1,289	$	6,232	$	(4,195)

Stock Warrants

As of September 30, 2021 and December 31, 2020, the Company had 9.4 million and 10.5 million fully vested outstanding warrants, respectively. As of September 30, 2021 and December 31, 2020, the holders of such warrants are entitled to purchase, in the aggregate, up to 5.2 million shares and 5.8 million shares, respectively, 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. During the three and nine months ended September 30, 2021, 15,425 and 1,026,649 warrants, respectively, were exercised. No warrants were exercised during the three and nine months ended September 30, 2020. These warrants expire on August 15, 2023. Proceeds of $13.9 million related to the exercise of the warrants are recorded in Other in Cash flows from financing activities on the Company's consolidated statement of cash flows.

Private Placement

On August 25, 2020 the Company completed a private placement of 68,857 shares of the Company’s common stock with a per share price of $10.17. The total cash received was $0.4 million, net of expenses. These shares were issued from Treasury stock. This resulted in a loss on the reissuance of Treasury stock of $0.8 million recorded as a reduction in Additional paid-in-capital.

Share Repurchases

On January 28, 2020, the Company repurchased approximately 1.0 million shares of its outstanding common stock from a single stockholder for a total purchase price of $12.6 million. On March 10, 2020, the Company repurchased approximately 0.8 million shares of its outstanding common stock for a total purchase price of $9.2 million. During June 2020, the Company repurchased approximately 0.8 million of shares of its outstanding common stock for a total purchase price of $8.8 million. The shares acquired in each of these transactions were recorded as Treasury stock upon repurchase. There were no share repurchases during the three and nine months ended September 30, 2021.