Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.20.2
Stock-Based Compensation
9 Months Ended
Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

Note 12—Stock-Based Compensation

In March 2020 the Company adopted the 2020 Inducement Equity Incentive Plan (the “2020 Plan”) with the purpose of attracting, retaining and incentivizing employees in furtherance of the Company’s success. The 2020 Plan was adopted without stockholder approval pursuant to Rule 303A.08 of the New York Stock Exchange rules. In accordance with New York Stock Exchange rules, this plan is used to offer equity awards as material inducements for new employees to join the Company. On adoption, 800,000 shares of common stock were reserved solely for the granting of inducement stock options, restricted stock, restricted stock units and other awards. The 2020 Plan provides for the granting of stock options with exercise prices equal to the fair market value of our common stock on the date of grant. During the nine months ended September 30, 2020 there were 450,000 stock options granted with a weighted average exercise price of $1.02 and 125,000 restricted stock awards granted with a grant date fair value of $0.1 million under the 2020 Plan. There are 56,250 exercisable options in the 2020 Plan at September 30, 2020.

 

A summary of the activity and related information of the stock options issued under the 2018 Equity Incentive Plan and the 2018 Stock Compensation Plan is presented below:

 

 

 

Stock

Options

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining

Life

(in years)

 

 

Aggregate

Intrinsic

Value

(in thousands)

 

Outstanding at December 31, 2019

 

 

3,139,537

 

 

$

15.50

 

 

 

8.09

 

 

$

 

Granted

 

 

293,220

 

 

 

1.23

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(261,477

)

 

 

14.56

 

 

 

 

 

 

 

 

 

Outstanding at September 30, 2020

 

 

3,171,280

 

 

$

14.26

 

 

 

7.73

 

 

$

 

Exercisable at September 30, 2020

 

 

1,803,297

 

 

$

20.37

 

 

 

6.81

 

 

$

 

Vested and expected to vest at September 30, 2020

 

 

3,171,280

 

 

$

14.26

 

 

 

7.73

 

 

$

 

 

A summary of the activity and related information of the restricted stock units issued under the 2018 Plan is presented below:

 

 

 

Restricted

Stock Units

 

 

Weighted

Average

Grant Date

Fair Value

 

Outstanding at December 31, 2019

 

 

271,472

 

 

$

5.15

 

Granted

 

 

429,359

 

 

 

0.54

 

Vested and released

 

 

(166,273

)

 

 

3.70

 

Forfeited

 

 

(17,584

)

 

 

4.06

 

Outstanding at September 30, 2020

 

 

516,974

 

 

$

2.14

 

 

Stock-based compensation expense recorded in operating expenses was as follows (in thousands):

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Selling, general and administrative

 

$

771

 

 

$

6,603

 

 

$

2,476

 

 

$

19,286

 

Research and development

 

 

115

 

 

 

254

 

 

 

317

 

 

 

1,440

 

Stock-based compensation in operating expenses

 

$

886

 

 

$

6,857

 

 

$

2,793

 

 

$

20,726

 

 

Stock-based compensation amounts of $0.1 million and $0.4 million were capitalized to inventory and property and equipment during the three months ended September 30, 2020 and 2019, respectively. Stock-based compensation of $0.3 million and $1.4 million were capitalized to inventory and property and equipment during the nine months ended September 30, 2020 and 2019, respectively.   

Unrecognized compensation expense for stock options issued as of September 30, 2020 was $2.6 million and is expected to be recognized over a weighted-average period of 1.3 years. Unrecognized compensation expense for the restricted stock units and restricted stock awards as of September 30, 2020 was $0.8 million and is expected to be recognized over a weighted-average period of 2.0 years.