STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock Incentive Plans

We have one long-term equity incentive plan, the RadNet, Inc. Equity Incentive Plan, which we first amended and restated April 20, 2015, again on March 9, 2017 and currently as of April 15, 2021 (the "Restated Plan”). The Restated Plan was approved by our stockholders at our annual stockholders meeting on June 10, 2021. We have reserved for issuance under the Restated Plan 16,500,000 shares of common stock. We can issue options (incentive and nonstatutory), stock awards (restricted or unrestricted), stock units, and stock appreciation rights under the Restated Plan.

Options

Stock option grants, whether incentive or nonstatutory, generally vest over 3 to 5 years and expire 5 to 10 years from the date of grant. Under the Restated Plan, stock options may not be granted at a per share exercise price below the fair market value of a share of our common stock on the date of grant, may not be repriced or exchanged without stockholder approval, and the maximum exercisable term of the option may not exceed ten years.

As of June 30, 2021, we had outstanding options to acquire 525,399 shares of our common stock, of which options to acquire 430,702 shares were exercisable. The following summarizes all of our option transactions for the six months ended June 30, 2021:


Outstanding Options Under the 2006 Plan	Shares	Weighted Average Exercise price Per Common Share		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
Balance, December 31, 2020	527,899	$	9.34

Exercised	(2,500)	10.10

Balance, June 30, 2021	525,399	9.34		5.86	$	12,793,992
Exercisable at June 30, 2021	430,702	8.34		5.50	10,920,256

Aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between our closing stock price on June 30, 2021 and the exercise price, multiplied by the number of in-the-money options as applicable) that would have been received by the holder had all holders exercised their options on June 30, 2021. Options for 2,500 shares of our common stock were exercised during the six months ended June 30, 2021. As of June 30, 2021, total unrecognized stock-based compensation expense related to non-vested employee awards was $0.4 million, which is expected to be recognized over a weighted average period of approximately 1.11 years.

DeepHealth Options

During the second quarter of fiscal 2020, in connection with the completion of the DeepHealth acquisition, we granted options to acquire 412,434 shares at a grant date fair value of $16.93 per share unit to DeepHealth employees in replacement of their stock options that were outstanding as of the closing date. As of June 30, 2021, total unrecognized stock based compensation expense related to non-vested DeepHealth options was approximately $3.0 million, which is expected to be recognized over a weighted average period of approximately 1.84 years.


Outstanding Options Under the Deep Health Plan	Shares	Weighted Average Exercise price Per Common Share		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
Balance December 31, 2020	400,539	$	—
Exercised	(1,141)	—
Balance, June 30, 2021	399,398	—		7.91	$	13,455,719
Exercisable at June 30, 2021	37,713	—		7.91	1,270,551

Restricted Stock Awards

The Restated Plan permits the award of restricted stock awards (“RSA’s”). As of June 30, 2021, we have issued a total of 7,699,439 RSA’s of which 427,688 were unvested at June 30, 2021. The following summarizes all unvested RSA’s activities during the six months ended June 30, 2021:


	RSA's	Weighted-Average Remaining Contractual Term (Years)	Weighted-Average Fair Value
RSA's unvested at December 31, 2020	329,159		$	16.69
Changes during the period
Granted	640,546		$	19.37
Vested	(542,017)		$	17.57

RSA's unvested at June 30, 2021	427,688	1.12	$	18.75

We determine the fair value of all RSA’s based on the closing price of our common stock on the award date.

Other stock bonus awards

The Restated Plan also permits share awards not subject to any future service period. These are valued and expensed based on the closing price of our common stock on the date of award. During the six months ended June 30, 2021, awards amounting to 294,048 shares valued at $6.5 million in compensation expense were issued in employee COVID-19 related bonuses.

Plan summary

In summary, of the 16,500,000 shares of common stock reserved for issuance under the Restated Plan, at June 30, 2021, we had issued 16,419,296 total shares between options, RSA’s and other stock awards. With options canceled and RSA’s forfeited amounting to 3,281,040 and 61,703 shares, respectively, there remain 3,423,447 shares available under the Restated Plan for future issuance.

Options issued in replacement of original DeepHealth options as a result of our acquisition are not included in the share count under the Restated Plan.