XML 26 R15.htm IDEA: XBRL DOCUMENT v3.22.2.2
STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Stock Incentive Plans
In March 2021, our Board adopted, in connection with the Redomiciliation, the Piedmont Lithium Inc. Stock Incentive Plan (“Incentive Plan”). The Incentive Plan authorized the grant of stock options, stock appreciation rights, restricted stock units and restricted stock, any of which may be performance-based. Our Compensation Committee determines the exercise price for stock options and the base price of stock appreciation rights, which may not be less than the fair market value of our common stock on the date of grant. Generally, stock options or stock appreciation rights vest after three years of service and expire at the end of ten years. Performance rights awards (“PRAs”) vest upon achievement of certain pre-established performance targets that are based on specified performance criteria over a performance period. As of September 30, 2022, 2,293,130 shares of common stock were available for issuance under our Incentive Plan.
We include the expense related to stock-based compensation in the same financial statement line item as cash compensation paid to the same employee. Additionally, and if applicable, we capitalize personnel expenses attributable to the development of our mine and construction of our plants, including stock-based compensation expenses. We recognize share-based award forfeitures as they occur.
Stock-based compensation related to all stock-based incentive plans is presented in the following table:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
Components of stock-based compensation:
Stock-based compensation$1,358,391 $833,509 $3,714,477 $1,851,805 
Stock-based compensation forfeitures(7,888)— (858,651)— 
Stock-based compensation, net of forfeitures
$1,350,503 $833,509 $2,855,826 $1,851,805 
Presentation of stock-based compensation in the unaudited consolidated financial statements:
Exploration and mine development costs$131,382 $336,375 $133,382 $730,316 
General and administrative expenses1,129,146 497,134 2,510,051 1,121,489 
Stock-based compensation expense, net of forfeitures(1)
1,260,528 833,509 2,643,433 1,851,805 
Capitalized stock-based compensation(2)
89,975 — 212,393 — 
Stock-based compensation, net of forfeitures
$1,350,503 $833,509 $2,855,826 $1,851,805 
__________________________
(1)For the three and nine months ended September 30, 2022 and 2021, we did not reflect a tax benefit associated with stock-based compensation expense in our consolidated statements of operations because we had a full tax valuation allowance in impacted jurisdictions during these periods. As such, the table above does not reflect the tax impacts of stock-based compensation expense.
(2)Capitalized stock-based compensation relates to direct labor costs associated with our Carolina Lithium and Tennessee Lithium projects and is included in “Property, plant and mine development, net” in our consolidated balance sheets.
A summary of activity relating to our share-based awards is presented in the following table:
20222021
Stock Option AwardsRestricted Stock UnitsPerformance Rights AwardsStock Option AwardsRestricted Stock UnitsPerformance Rights Awards
January 1272,504 51,277 30,000 443,694 — 65,000 
Granted135,957 17,437 29,120 50,000 — — 
Exercised, surrendered or vested(15,000)(14,285)— (18,906)— — 
Forfeited or expired(19,458)(17,209)— — — — 
March 31374,003 37,220 59,120 474,788 — 65,000 
Granted58,949 7,972 10,348 33,004 36,745 — 
Exercised, surrendered or vested(37,500)(9,219)— (115,288)— (5,000)
Forfeited or expired(719)— — — — — 
June 30394,733 35,973 69,468 392,504 36,745 60,000 
Granted— 3,255 10,000 — — — 
Exercised, surrendered or vested(36,250)(1,250)— (120,000)— — 
Forfeited or expired— (561)— — — — 
September 30358,483 37,417 79,468 272,504 36,745 60,000 
As of September 30, 2022, we had remaining unvested stock-based compensation expense of $7.1 million to be recognized through December 2024.
As of September 30, 2022, there were 79,468 unvested PRAs, which expire over the next three years and are subject to certain milestones related to construction, feasibility studies and supply agreements.