Blade Air Mobility, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation

Stock-Based Compensation

12 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Option Awards

On December 14, 2020, the Board of Directors granted an option for the purchase of 10,920 shares of the Company’s common stock to an employee of the Company. The option, which was granted under the Company’s 2015 Equity Incentive Plan, had an exercise price of $10.01 per share and a term of 10 years. The option had a grant date fair value of $60, where 25% of the shares vest one year from the grant date, with the remaining 75% vesting in successive equal monthly installments thereafter over 36 months.

Option Award Valuation Assumptions

The Company determined the fair value of stock options granted based upon the assumptions as provided below:


	Year Ended September 30,
	2021	2020	2019
Stock price	$10.00	$0.18	$0.61-$0.66
Exercise price	$10.01	$0.18	$0.61-$0.66
Dividend yield	0%	0%	0%
Expected volatility	60%	60%	60%
Risk-Free interest rate	0.63%	0.14%-0.44%	1.88%-2.99%
Expected life (in years)	6.08	2.4-6.08	5.48-6.08

Stock Option Modification

Stock options granted under the 2015 Equity Incentive Plan vest over a period of time as previously determined by the Board of Directors, subject to the option holder’s continuous service through each applicable vesting date. Under the options agreements, consummation of the Merger would not automatically cause the vesting of options under the 2015 Equity Incentive Plan. However, on December 14, 2020, the Board provided that the vesting of all outstanding options that were granted before December 14, 2020, under the 2015 Equity Incentive Plan that are held by current employees or other service providers, would be accelerated upon the consummation of the Merger Agreement. Accordingly, stock options to purchase an aggregate of 2,684,026 shares of common stock became vested immediately under this modification. Under ASC 718, the Company treated this event as a modification of these stock option awards. The Company determined that the increase in fair value of the stock options was immaterial, and as such, no additional cost was recognized.

Stock Option Awards

The following is a summary of stock option activities for the year ended September 30, 2021:


	Options	Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Weighted Average Remaining Life (years)	Intrinsic Value




Outstanding – October 1, 2020	9,859,674	$	0.19	$	0.20	6.8	$	—
Granted	10,920	10.01		5.49
Exercised	(765,046)	0.21		0.22
Forfeited	(127,363)	1.09		0.12
Outstanding – September 30, 2021	8,978,185	$	0.19	$	0.20	5.7	$	91,699
Exercisable as of September 30, 2021	8,978,185	$	0.19	$	0.20	5.7	$	91,699

For the years ended September 30, 2021, 2020 and 2019, the Company recorded $1,013, $490 and $317, respectively, in stock option expense. The fair value of stock options is amortized on a straight-line basis over the requisite service periods of the respective awards. As of September 30, 2021, $0 of stock-based compensation costs related to stock options remains subject to amortization.

Restricted Stock

On December 14, 2020, the Company granted an aggregate of 739,537 shares of the Company’s restricted stock to various employees, officers, directors, consultants, and service providers under the 2015 Equity Incentive Plan and 50,960 shares of the Company’s restricted stock to a director outside the 2015 Equity Incentive Plan. During the fourth quarter ended September 30, 2021, the Company granted an aggregate of 1,517,881 shares of the Company's restricted stock unit to various employees, officers, directors, consultants, and service providers under the 2021 Equity Incentive Plan. The shares have various vesting dates, ranging from vesting on the grant date to as late as four years from the date of grant.


	Restricted Stock Awards	Weighted Average Grant Date Fair Value		Restricted Stock Units	Weighted Average Grant Date Fair Value
Non-vested – October 1, 2020	—	$	—	—	$	—
Granted	790,497	10.00		1,517,881	7.54
Vested	(105,560)	10.00		(49,686)	7.73
Forfeited	—	—		(16,000)	8.02
Non-vested – September 30, 2021	684,937	$	10.00	1,452,195	$	7.61

For the years ended September 30, 2021, 2020 and 2019, the Company recorded $8,608, $0 and $0, respectively, in restricted stock compensation expense. As of September 30, 2021, unamortized stock-based compensation costs related to restricted share arrangements was $10,609 and will be recognized over a weighted average period of 1.96 years.

Stock-Based Compensation Expense

Stock-based compensation expense for stock options and restricted stock in the consolidated statements of operations is summarized as follows:


	For the Years Ended September 30,
	2021		2020		2019
Software development	$	499	$	29	$	35
General and administrative	8,887		461		270
Selling and marketing	235		—		12
Total stock-based compensation expense	$	9,621	$	490	$	317