Share-Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

As of March 31, 2023, the Company had 31.5 million options, 7.0 million RSUs and 98.0 million warrants outstanding.

The Company awards common stock and stock options to employees, consultants, and directors as compensation for their services. Stock option awards to employees, consultants, and directors are recorded by the Company pursuant to the provisions of ASC 718. For the options with market conditions, the fair value of each award is estimated on the date of grant using Monte-Carlo valuation model and recognizes the fair value of each option as compensation expense over the derived service period. For the options with performance conditions, the fair value of each award is estimated on the date of grant using Black-Scholes Merton valuation model and recognizes the fair value of each option as compensation expense over the implicit service period. For RSUs and option awards only with service conditions, the fair value of each option award is estimated on the date of grant using the Black-Scholes Merton valuation model. The Company recognizes the fair value of each option as compensation expense ratably using the straight-line attribution method over the service period, which is generally the vesting period.

Effective as of December 3, 2010 and amended on August 3, 2018, the Company’s Board of Directors approved the 2010 Plan pursuant to which options or other similar securities may be granted. On October 22, 2020, the Company’s shareholders approved the amendment and restatement of the 2010 Plan. The maximum aggregate number of shares of common stock that may be issued under the 2010 Plan increased from 31.5 million shares to 56.8 million shares. As of March 31, 2023, options available for issuance are 58.5 million shares.

For the three months ended March 31, 2023 and 2022, total share-based payments expense was $2.4 million, respectively.

(a)Stock Options

The following table summarizes stock option activity for the three months ended March 31, 2023:


	Options Outstanding	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding at January 1, 2023	33,240,364	$	1.17	7.8	$	—


Expired	(1,563,574)	1.07
Forfeited	(222,292)	0.41
Outstanding at March 31, 2023	31,454,498	1.19		7.83	—
Vested as of March 31, 2023	21,292,622	1.42		7.16	—
Expected to vest as of March 31, 2023	10,161,876	0.71		9.23	—

As of March 31, 2023, $3.5 million of total unrecognized compensation expense related to non-vested share options is expected to be recognized over a weighted average period of 1.18 years. The total intrinsic value of shares exercised in the three months ended March 31, 2023 and 2022 was $0.0 million. The total fair value of shares vested in the three months ended March 31, 2023 and 2022 was $2.0 million and $2.2 million, respectively. Cash received from options exercised in the three months ended March 31, 2023 and 2022 was $0.0 million.

For the options with service conditions, the assumptions used to estimate the fair values of the stock options granted in the three months ended March 31, 2022 as follows:


	Three Months Ended
	March 31, 2022
Expected term (in years)	5.51-5.53
Expected volatility	123%
Expected dividend yield	—	%
Risk free interest rate	1.69%-2.12%

(b)Warrants

In connection with certain of the Company’s service agreements, the Company issued warrants to service providers to purchase common stock of the Company. The weighted average exercise price was $0.29 and the weighted average remaining life was 4.75 years.


	March 31, 2023	December 31, 2022
Warrants Outstanding	Number of Warrants Outstanding and Exercisable	Number of Warrants Outstanding and Exercisable	Exercise Price		Expiration Date




Acuitas	24,509,804	5,000,000	$	0.29	November 14, 2027
Acuitas	24,509,804	5,000,000	0.29		November 27, 2027
Acuitas	49,019,608	—	0.29		February 2, 2028
Total	98,039,216	10,000,000

(c)RSUs

In December 2022, the Company granted 8.2 million restricted shares to certain employees and directors under the 2010 Plan which was approved by the Board. The restricted shares were vested either immediately or over 2.00 years. The aggregated grant date fair value of all those restricted shares was $1.6 million.

In January 2023, due to the completion of VIA acquisition, the Company assumed the restricted shares that VIA granted to its employees of 1.5 million, which was adjusted to 3.6 million restricted shares of IDEX. The aggregated fair value of all those restricted shares was $0.7 million on the acquisition completion date.

As of March 31, 2023, there was $1.1 million of unrecognized compensation cost related to unvested restricted shares.