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Stock-Based Compensation
 6 Months Ended 12 Months Ended
Jun. 30, 2020
Dec. 31, 2019
EOS ENERGY STORAGE, LLC [Member]    
Stock-Based Compensation

14. Stock-Based Compensation

Since 2012, Eos has issued stock options to employees and certain service providers under the 2012 Eos Equity Incentive Plan (“Plan”). In addition to stock options, the Plan provides for the issuance of other forms of stock-based compensation, including profits interests, unit appreciation rights and restricted units. Only stock options have been issued under the Plan.

The following table summarizes stock option activity during the six months ended June 30, 2020:

 

Units

  

Weighted-Average
Exercise Price

  

Weighted-Average
Remaining
Contractual Term
(years)

Options Outstanding at December 31, 2019

  

6,815,603

 

  

$

0.90

  

5.4

Granted

  

1,250,000

 

  

$

0.50

    

Cancelled/Forfeited

  

(749,760

)

  

$

1.47

    

Options Outstanding at June 30, 2020

  

7,315,843

 

  

$

0.74

  

5.7

Options Exercisable at June 30, 2020

  

2,963,768

 

  

$

1.04

    

As of the six months ended June 30, 2020 and year ended December 31, 2019, 1,024,907 and 1,966,810 shares remain for future issuance, respectively. Options vest generally over three to five years and have a term of five to ten years. The Company recorded stock compensation expense of $38 and $71 for the six months ended June 30, 2020 and 2019, respectively, which has been recorded in General and administrative expenses in the Statements of Operations. Unrecognized stock compensation expense of $333 is expected to be amortized over the next four years.

The weighted average assumptions used to determine the fair value of options granted in the six months ended June 30, 2020 and year ended December 31, 2019 are as follows:

 

2020

  

2019

Volatility

  

50.00

%

  

58.20

%

Risk free interest rate

  

0.49

%

  

1.89

%

Expected life (years)

  

6.25

 

  

6.25

 

Dividend yield

  

0

%

  

0

%

The weighted average grant date fair value of all options granted was $0.12 and $0.07 per option for the six months ended June 30, 2020 and year ended December 31, 2019, respectively.

The following table summarizes non-vested stock option activity for the six months ended June 30, 2020:

 

Shares

  

Fair Value

Non-vested options outstanding at December 31, 2019

  

3,833,774

 

  

$

1.72

Granted

  

1,250,000

 

  

$

0.50

Vested

  

(465,459

)

  

$

0.50

Exercised

  

—

 

  

 

—

Forfeited

  

(749,760

)

  

$

1.47

Non-vested options outstanding at June 30, 2020

  

3,868,555

 

  

$

0.55

14. Stock-Based Compensation

Since 2012, Eos has issued stock options to employees and certain service providers under the 2012 Eos Equity Incentive Plan (“Plan”). In addition to stock options, the Plan provides for the issuance of other forms of stock-based compensation, including profits interests, unit appreciation rights and restricted units. Only stock options have been issued under the Plan.

The following table summarizes stock option activity during the years ended December 31, 2019 and 2018:

 

Units

  

Weighted-Average
Exercise Price

  

Weighted-Average
Remaining
Contractual Term
(years)

Options Outstanding at December 31, 2017

  

3,879,955

 

  

$

1.39

    

Granted

  

1,708,806

 

  

$

1.75

    

Cancelled/Forfeited

  

(331,334

)

  

$

1.55

    

Options Outstanding at December 31, 2018

  

5,257,427

 

  

$

1.51

  

2.8

Granted

  

4,422,114

 

  

$

0.55

    

Cancelled/Forfeited

  

(2,863,938

)

  

$

1.51

    

Options Outstanding at December 31, 2019

  

6,815,603

 

  

$

0.87

  

5.4

Options Exercisable at December 31, 2018

  

3,303,608

 

  

$

1.33

  

2.8

Options Exercisable at December 31, 2019

  

2,356,348

 

  

$

1.31

  

1.8

As of December 31, 2019 and 2018, 1,525,147 and 3,083,323 shares remain for future issuance, respectively. Options vest generally over three to five years and have a term of five to ten years. The Company recorded stock compensation expense of $135 and $137 for the years ended December 31, 2019 and 2018, respectively, which has been recorded in General and administrative expenses in the Statements of Operations. Unrecognized stock compensation expense of $365 is expected to be amortized over the next four years.

The weighted average assumptions used to determine the fair value of options granted in 2019 and 2018 are as follows:

 

2019

  

2018

Volatility

  

58.20

%

  

62.00

%

Risk free interest rate

  

1.89

%

  

2.42

%

Expected life (years)

  

6.25

 

  

4.5

 

Dividend yield

  

0

%

  

0

%

The weighted average grant date fair value of all options granted was $0.07 and $0.12 per option for the years ended December 31, 2019 and 2018, respectively.

The following table summarizes non-vested stock option activity for the years ended December 31, 2019 and 2018:

 

Shares

  

Fair Value

Non-vested options outstanding at December 31, 2017

  

828,197

 

  

$

1.49

Granted

  

1,708,806

 

  

$

1.75

Vested

  

(622,035

)

  

$

1.60

Exercised

  

—

 

  

 

—

Forfeited

  

(93,730

)

  

$

1.38

Non-vested options outstanding at December 31, 2018

  

1,821,239

 

  

 

  

Granted

  

4,422,114

 

  

$

0.50

Vested

  

(497,189

)

  

$

0.77

Exercised

  

—

 

  

 

—

Forfeited

  

(1,912,390

)

  

$

1.65

Non-vested options outstanding at December 31, 2019

  

3,833,774

 

  

$

1.72