Annual report pursuant to Section 13 and 15(d)

Share-based compensation

v3.22.1
Share-based compensation
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Share-based compensation Share-based compensationOn November 11, 2019, the Company received shareholder approval for the Amended and Restated 2019 Incentive Award Plan (the “Amended 2019 Plan”).The Amended 2019 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock units, other stock or cash-based awards or a dividend equivalent award. The Amended 2019 Plan authorized the issuance of 1,083,334 shares of common stock which was increased to 1,500,000 after the Halo acquisition; the Amended 2019 Plan also provides for an annual increase on the first day of each calendar year beginning on January 1, 2020 and ending on and including January 1, 2029, equal to the lesser of (A) 10% of the shares of common stock outstanding (on an as-converted basis) on the last day of the immediately preceding fiscal year and (B) such smaller number of shares of common stock as determined by the Board. The authorized shares for issuance was increased to 2,700,000 on January 1, 2021 and again increased to 5,614,637 on January 1, 2022.
Stock options
The following table provides detail of the options granted and outstanding (dollars in thousands):
  Options Weighted Average
Exercise Price		 Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value
Options outstanding as of December 31, 2020 1,302,503  $ 4.84  8.6 $ 4,234 
Granted 1,456,408  $ 7.25 
Forfeited/Expired (74,870) $ 6.53 
Options outstanding as of December 31, 2021 2,684,041  $ 6.10  8.5 $ — 
Options exercisable as of December 31, 2021 1,267,306  $ 4.99  7.7 $ — 
Options granted under the Amended 2019 Plan vest over a period of two to three years. All vested options are exercisable and may be exercised through a ten-year anniversary of the grant date (or such earlier date described in the applicable award agreement).
During the years ended December 31, 2021 and 2020, $4.0 million and $7.5 million, respectively, of share-based compensation expense was recognized related to options issued. As of December 31, 2021, unrecognized share-based compensation related to options was $4.5 million, which is expected to be recognized over a weighted average period of 1.1 years.
The fair value of an option award is estimated on the date of grant using the Black–Scholes option valuation model, using the following assumptions primarily based on historical data:
Years Ended December 31,
2021 2020
Risk-free interest rate
0.36 - 1.39%
0.33 - 0.89%
Expected volatility (1)
60.0% - 67.5%
 67.5%
Expected dividend yield —% —%
Expected life (years) (2)
6.0 - 6.5
3.0 - 6.5
(1)Expected volatility was determined using a combination of historical volatility and implied volatility.
(2)For certain options, the simplified method is utilized to determine the expected life due to the lack of historical data.
Effective October 1, 2020, outstanding stock option awards held by employees as of October 1, 2020 were repriced concurrent with the closing of the Series F Private Placement. In total, 1,012,956 stock options were repriced. The exercise price was set at a 20% premium to the Series F Preferred Stock conversion price, or $3.60 per share. The change in exercise price of the outstanding options caused an increase in fair value of all vested options at date of repricing of $0.2 million which was expensed by the Company. The change in exercise price also caused an increase in fair value of all unvested options at date of repricing of $0.2 million.
Restricted stock
In March 2020, the Company issued 75,000 shares of restricted common stock to three non-employee directors in return for services provided in their capacity as directors and issued 993 restricted shares of common stock to an officer of the Company. The restricted shares were immediately vested and as such, the Company recorded share-based compensation expense of $0.5 million upon issuance.