Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.21.2
Stock-Based Compensation
9 Months Ended
Jun. 30, 2021
Stock-Based Compensation  
Stock-Based Compensation

Note 8 – Stock-Based Compensation

Option Awards

On December 14, 2020, the Board of Directors granted an option for the purchase of 10,920 shares of the Company’s Class A 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% vest in successive equal monthly installments thereafter over 36 months.

Option Award Valuation Assumptions

The Company determined the fair value of stock options granted during the nine months ended June 30, 2021 based upon the assumptions as provided below.

Stock price

$

10.00

Exercise price

$

10.01

Dividend yield

 

0

%

Expected volatility

 

60

%

Risk-Free interest rate

 

0.63

%

Expected life (in years)

 

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, but on December 14, 2020 the Company’s Board of Directors 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 Class A 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.

Note 8 – Stock-Based Compensation (Continued)

Stock Option Awards

Following is a summary of stock option activities for the nine months ended June 30, 2021:

    

    

    

    

Weighted 

    

Weighted

Average 

Weighted

 Average 

Remaining  

 Average

Grant Date 

Life

Intrinsic

Options

 Exercise Price

Fair Value

(years)

Value

Outstanding – October 1, 2020

9,859,674

$

0.19

$

0.20

6.8

$

Granted

 

10,920

 

10.01

 

5.49

 

  

 

  

Exercised

 

(66,123)

 

0.36

 

0.25

 

  

 

  

Forfeited

 

(114,645)

 

0.25

 

0.12

 

  

 

  

Outstanding – June 30, 2021

 

9,689,826

$

0.20

$

0.20

 

6.1

$

99,824

Exercisable as of June 30, 2021

 

9,683,001

$

0.19

$

0.20

 

6.1

$

99,818

For the three months ended June 30, 2021 and 2020, the Company recorded $656 and $90 in stock option expense. For the nine months ended June 30, 2021 and 2020, the Company recorded $1,013 and $268 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 June 30, 2021, $48 of stock-based compensation costs related to stock options remains subject to amortization, which will be amortized over 2.4 years.

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. The shares have various vesting dates, ranging from vesting on the grant date to as late as one year from the date of grant.

    

    

Weighted 

Average 

Shares of Restricted 

Grant Date 

Stock

Fair Value

Non-vested – October 1, 2020

 

$

Granted

 

790,497

 

10.00

Vested

 

(87,360)

 

10.00

Non-vested – June 30, 2021

 

703,137

$

10.00

For the three months ended June 30, 2021 and 2020, the Company recorded $1,862 and $0 in employee and officers restricted stock compensation expense. For the nine months ended June 30, 2021 and 2020, the Company recorded $4,684 and $0 in employee and officers restricted stock compensation expense. As of June 30, 2021, unamortized stock-based compensation costs related to restricted share arrangements was $3,221 and will be recognized over a weighted average period of 0.5 years.

Note 8 – Stock-Based Compensation (Continued)

Stock-Based Compensation Expense

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

For the Three Months Ended June 30,

    

2021

    

2020

Software development

$

86

$

7

General and administrative

 

2,425

 

77

Selling and marketing

 

7

 

6

Total stock-based compensation expense

$

2,518

$

90

For the Nine Months Ended June 30,

    

2021

    

2020

Software development

$

174

$

19

General and administrative

 

5,516

 

231

Selling and marketing

 

7

 

18

Total stock-based compensation expense

$

5,697

$

268