RESTRICTED STOCK AND STOCK OPTIONS

6 Months Ended

Jun. 30, 2021

RESTRICTED STOCK AND STOCK OPTIONS [Abstract]

18.	RESTRICTED STOCK AND STOCK OPTIONS

Options

As of June 30, 2021, the Company has 201,333 non-qualified stock options outstanding to purchase 201,333 shares of Common Stock, per the terms set forth in the option agreements. The stock options vest at various times and are exercisable for a period of five years from the date of grant at an exercise price of $1.49 per share, the fair market value of the Company’s Common Stock on the date of each grant. The Company determined the fair market value of these options to be $1.7 million by using the Black Scholes option valuation model. The key assumptions used in the valuation of the options were as follows; a) volatility of 187.94%, b) term of 2 years, c) risk free rate of 0.13% and d) a dividend yield of 0%.

	Six Months Ended June 30, 2021
	Number of Options		Weighted average exercise price
Outstanding, beginning January 1, 2021		-	$	-
Granted		302,000	$	1.49
Exercised		100,667	$	1.49
Outstanding, ending June 30, 2021		201,333	$	1.49
Exercisable at June 30, 2021		-	$	-

The above table does not include the 429,000 options issued as part of the Jensyn IPO.

During the three months ended June 30, 2021 and 2020, the Company charged a total of $0.1 million and $0, respectively, to operations to recognize stock-based compensation expense. During the six months ended June 30, 2021 and 2020, the Company charged a total of $0.6 million and $0, respectively, to operations to recognize stock-based compensation expense. Unamortized stock-based compensation expense for stock options is $0.1 million. As of June 30, 2021, the Company had $1.0 million in unrecognized stock-based compensation expense related to 160,667 restricted stock awards, which is expected to be recognized over a weighted average period of less than three years. All units are expected to vest.

The stock options were exercised for 100,667 shares of Common Stock providing approximately $0.1 million of cash flow to the Company.

Restricted Stock Grant to Executives

With an effective date of January 4, 2021, subject to the iSun, Inc. 2020 Equity Incentive Plan, (the “2020 Plan”), the Company entered into a restricted stock grant agreement with our Chief Executive Officer Jeffrey Peck, Chief Financial Officer John Sullivan, Chief Operating Officer Fredrick Myrick, and Chief Strategy Officer Michael dAmato in January 2021 (the January 2021 RSGA). All shares issuable under the January 2021 RSGA are valued as of the grant date at $6.15 per share representing the fair market value. The January 2021 RSGA provides for the issuance of up to 241,000 shares of the Company’s Common Stock. The restricted shares shall vest as follows: 80,333 of the restricted shares shall vest immediately, 80,333 of the restricted shares shall vest on the one (1) year anniversary of the effective date, and the balance, or 80,334 restricted shares, shall vest on the two (2) year anniversary of the effective date.

In the three months ended June 30, 2021 and 2020, stock-based compensation expense of $0.1 million and $0, respectively was recognized for the January 2021 RSGA. In the six months ended June 30, 2021 and 2020, stock-based compensation expense of $0.7 million and $0, respectively was recognized for the January 2021 RSGA.

Stock-based compensation, excluding the January 2021 RSGA, related to employee and director options totaled $0.1 and $0 for the three months ended June 30, 2021 and 2020, respectively. Stock-based compensation, excluding the January 2021 RSGA, related to employee and director options totaled $0.5 and $0 for the six months ended June 30, 2021 and 2020, respectively.

On February 25, 2021, the stockholders approved an amendment to the 2020 Equity Incentive Plan increasing the available shares of Common Stock to 1,000,000 shares of Common Stock.