Stock-based Compensation

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Stock-based Compensation

Stock-based CompensationStock-based compensation expense reflects share awards issued under the Company's 2018 virtual stock option plan and the Long Term Incentive Plan adopted in 2020 (the "LTIP"). For the three months ended March 31, 2022 and 2021, the Company recognized total stock-based compensation expense for all the plans of $0.5 million and $1.0 million, respectively, which is included as a component of Other operating expenses in the Consolidated Statements of Operations and Comprehensive Loss.

2020 Long Term Incentive Plan

In connection with the adoption of the LTIP, the Administrative Board authorized for 2020 the issuance of virtual options for up to three million ADSs, including up to one million zero-priced options. In 2021, the Administrative Board authorized the issuance of an additional 500,000 ADSs, which can be used for the issuance of both options and zero-priced options. The additional authorized ADSs were used in connection with the options granted in the first quarter of 2022. As of March 31, 2022, 215,833 virtual options, and 208,867 zero-priced options were available for future grant under the LTIP.

The fair value of the virtual stock options and zero-priced options are measured using a Black-Scholes option-pricing model for the three months ended March 31, 2022. The inputs used in the measurement of the fair values at the date of grant are summarized below:

	Virtual Stock Options		Zero-Priced Options
	Long Call	Short Call	Long Call	Short Call
	Option	Option (Cap)	Option	Option (Cap)
Stock price	$2.70	$2.70	$2.70	$2.70
Strike price	$2.93	$29.30	$—	$50.00
Term	4.65	4.65	4.65	4.65
Volatility	65.0%	65.0%	65.0%	65.0%
Dividend	—%	—%	—%	—%
Risk-free rate	2.4%	2.4%	2.4%	2.4%

The following table summarizes the activity for the Company's options under the LTIP during the three months ended March 31, 2022:

	Number of Options	Weighted Average Exercise Price	Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
			(in years)
Outstanding as of December 31, 2021	1,802,228	$4.71	5.62	$0.01
Granted	530,000	2.93
Forfeited	(48,061)	5.24
Outstanding as of March 31, 2022	2,284,167	4.29	5.76	0.01
Vested and exercisable at March 31, 2022	684,513	$4.81	4.95	$0.01

	Number of Options	Weighted Average Grant Date Fair Value
Unvested as of December 31, 2021	1,190,967	$2.53
Granted	530,000	1.20
Vested	(73,252)	3.03
Forfeited	(48,061)	2.56
Unvested as of March 31, 2022	1,599,654	$2.06

The following table summarizes the activity for the Company's zero priced options under the LTIP during the three months ended March 31, 2022:

	Number of Options
Outstanding as of December 31, 2021	584,068
Granted	220,000
Forfeited	(12,935)
Outstanding as of March 31, 2022	791,133
Vested and exercisable at March 31, 2022	104,233

	Number of Options	Weighted Average Grant Date Fair Value
Unvested as of December 31, 2021	514,370	$5.29
Granted	220,000	2.59
Vested	(34,535)	6.21
Forfeited	(12,935)	5.35
Unvested as of March 31, 2022	686,900	$4.38

The total unrecognized compensation expense related to awards granted under the LTIP at March 31, 2022 was $3.2 million, which will be recognized over a weighted-average period of 3.00 years.

As of March 31, 2022 and 2021, diluted loss per share excludes 1,096,902 and 806,280 potentially dilutive common shares, respectively, related to vested option awards, as their effect was anti-dilutive.