EQUITY BASED COMPENSATION

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Equity Incentive Plans

In February 2021, Greenidge adopted an equity incentive plan and reserved 383,111 shares of Class A common stock for issuance under the plan (the “2021 Equity Plan”), applicable to employees and non-employee directors. In April 2023, the stockholders approved an amendment and restatement of the 2021 Equity Plan to increase the maximum aggregate number of shares of Class A common stock that may be issued for all purposes under the Plan by 500,000 shares of Class A common stock from 383,111 to 883,111 shares of Class A common stock and to remove the counting of shares of Class A common stock granted in connection with awards other than stock options and stock appreciation rights against the total number of shares available under the Plan as two shares of Class A common stock for every one share of Class A common stock granted in connection with such award. For the year ended December 31, 2023, no additional shares had been granted under the 2021 Equity Plan. In October 2022, the Company registered 307,684 shares of Class A common stock, outside of the 2021 Equity Plan, that were reserved for issuance upon the vesting and exercise of non-qualified stock option inducement grants.

Restricted Common Stock Unit Awards

During the year ended December 31, 2023, the Company awarded 33,418 restricted common stock units ("RSUs") under the 2021 Equity Plan, which vested immediately upon grant. RSUs granted are generally eligible to vest over a three-year period at a rate of 33.3% per year and are subject to forfeiture restrictions which lapse over time.

The Company’s unvested RSU awards activity for the year ended December 31, 2023 is summarized below:


	RSUs	Weighted Average Grant Date Fair Value
Unvested at December 31, 2022	24,729	$	68.80
Granted	33,418	$	5.30
Vested	(48,548)	$	26.30
Forfeited	(483)	$	61.24
Unvested at December 31, 2023	9,116	$	62.99

The value of RSU grants is measured based on their fair market value on the date of grant and amortized over their requisite service periods. The fair market value of the awards granted totaled $0.2 million and $0.7 million during the years ended December 31, 2023 and 2022, respectively. There was $0.1 million of total unrecognized compensation cost related to unvested restricted stock rights as of December 31, 2023, which is expected to be recognized over a remaining weighted-average vesting period of less than 1 year.

Common Stock Options

During the year ended December 31, 2023, the Company awarded 100,000 options that vest over a three-year period at a rate of 33.3% per year and are subject to forfeiture restrictions which lapse over time. These were issued from the Inducement Grants registered in October 2022. Options granted to officers and employees expire ten years after the date of grant.

The Company’s stock options activity for the year ended December 31, 2023 is summarized below:


	Options	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
Outstanding at December 31, 2022	364,185	$	20.46	-
Granted	100,000	$	4.94

Forfeited	(5,203)	$	62.62

Outstanding at December 31, 2023	458,982	$	16.59	8.8	$	177
Exercisable as of December 31, 2023	150,012	$	27.76	8.2	$	—

The value of common stock option grants is measured based on their fair market value on the date of grant and amortized over their requisite service periods. During the year ended December 31, 2023 and 2022, the fair market value of the awards granted totaled $0.5 million and $3.1 million, respectively. As of December 31, 2023, there was $2.4 million of total unrecognized compensation cost related to unvested options, which is expected to be recognized over a remaining weighted-average vesting period of approximately 2.1 years.

We determine the fair value of each grant using the Black-Scholes-Merton option pricing model. The weighted average assumptions relating to the valuation of stock options granted for the year ended December 31, 2023 and 2022 were as follows:


	2023			2022
Weighted average exercise price of options granted	$	4.94		$	1.32
Expected volatility	211		%	89		%
Expected term (years)	10.0			6.0
Risk-free interest rate	4.5		%	4.1		%
Expected dividend yield	0.0		%	0.0		%

Stock-based Compensation

The Company recognized stock-based compensation expense of $2.3 million and $2.6 million during the years ended December 31, 2023 and 2022, respectively. Stock-based compensation expense is included in selling, general and administrative expenses in the accompanying Consolidated Statements of Operations and Comprehensive Loss.