Share-based Compensation Plans

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Share-based Compensation Plans

11.Share-based compensation plans

Share-based payments expense

Total share-based payments expense was as follows:

	For the Three Months Ended					For the Six Months Ended
		June 30, 2022		June 30, 2021			June 30, 2022		June 30, 2021
Stock options		$	3,500	$	4,316		$	6,090	$	7,766
Restricted share units			963		332			1,729		449
Total share-based payments		$	4,463	$	4,648		$	7,819	$	8,215

Stock Options

The following table summarizes the stock option activity for the six months ended June 30, 2022:

	Number of Stock Options			Weighted average remaining contractual life (in years)		Weighted Average Exercise Price (per share) $		Aggregate intrinsic value		Weighted average fair value of nonvested options (per share) $
Outstanding, December 31, 2021		12,854,519			4.84	$	4.85	$	27,557	$	4.22
Granted		4,182,590					5.16
Replacement options granted on acquisition of Gage		4,940,364					2.99
Exercised		(88,015	)				4.04
Forfeited (1)		(649,376	)				8.65
Expired		(396,441	)				8.08
Outstanding, June 30, 2022		20,843,641			4.94	$	4.24		3,615	$	-
Exercisable, June 30, 2022		12,396,267			3.07	$	3.11		3,615	N/A
Nonvested, June 30, 2022		8,447,374			7.69	$	5.89		-	N/A

(1)For stock options forfeited, represents one share for each stock option forfeited.

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on June 30, 2022 and December 31, 2021, respectively, and the exercise price, multiplied by the number of the in-the-money options) that would have been received by the option holders had all option holders exercised their in-the-money options on June 30, 2022 and December 31, 2021, respectively.

The total pre-tax intrinsic value (the difference between the market price of the Company’s Common Stock on the exercise date and the price paid by the option holder to the exercise the option) related to stock options exercised is presented below:

	For the Three Months Ended					For the Six Months Ended
		June 30, 2022		June 30, 2021			June 30, 2022		June 30, 2021
Exercised		$	79	$	1,721		$	140	$	4,798

The Gage Acquisition included consideration in the form of 4,940,364 replacement options that had been issued before the acquisition date to employees of Gage. The post-combination options vest over a 1-3 year period. The fair value of the replacement options are estimated using the Black-Scholes Option Pricing Model with the following assumptions:

	March 10, 2022
Volatility	55.0%-80.0%
Risk-free interest rate	1.22%-1.94%
Expected life (years)	1.00-5.00
Dividend yield		0	%

The fair value of the various stock options granted was estimated using the Black-Scholes Option Pricing Model with the following assumptions:

	June 30, 2022			December 31, 2021
Volatility	77.55% - 79.04%			79.05% - 81.51%
Risk-free interest rate	1.63% - 3.02%			0.90% - 1.72%
Expected life (years)	9.62 - 10.01			4.57 - 10.05
Dividend yield		0	%		0	%
Forfeiture rate		23.73	%	23.21% - 27.73%

Volatility was estimated by using the historical volatility of the Company's stock price. The expected life in years represents the period of time that the options issued are expected to be outstanding. The risk-free rate is based on US treasury bond issues with a remaining term approximately equal to the expected life of the options. Dividend yield is zero since the Company has never paid cash dividends and does not expect to pay cash dividends in the foreseeable future.

The total estimated fair value of stock options that vested during the six months ended June 30, 2022 and 2021 was $4,921 and $9,140, respectively. As of June 30, 2022, there was $30,806 of total unrecognized compensation cost related to unvested options.

Restricted Share Units

The following table summarizes the activities for the unvested RSUs for the three and six months ended June 30, 2022:

	Number of RSUs			Number of RSUs vested		Weighted average remaining contractual life (in years)
Outstanding, December 31, 2021		192,171			13,294	N/A
Granted		573,716
Vested		(58,825	)
Forfeited		(23,250	)
Outstanding, June 30, 2022		683,812			13,050	N/A

As of June 30, 2022, there was $3,916 of total unrecognized compensation cost related to unvested RSUs.