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Stock Based Compensation | 3 Months Ended
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Mar. 31, 2022
Share-based Payment Arrangement [Abstract] |
Stock Based Compensation | Stock-Based CompensationThe following table summarizes the stock-based compensation expense recognized under all of the Company’s stock plans for the three months ended March 31, 2022 and 2021, and associated with the issuance of restricted shares of common stock and vesting of stock options, which are included in general and administrative expenses in the accompanying consolidated statements of income (in thousands):
| Three Months Ended March 31, |  |
| 2022 |  | 2021 |  |  |  |
Stock options | $ | 780 |  |  | $ | 589 |  |  |  |  |
Restricted stock | 2,275 |  |  | 757 |  |  |  |  |
Total stock-based compensation expense | $ | 3,055 |  |  | $ | 1,346 |  |  |  |  |
Unrecognized compensation expense related to total share-based payments outstanding as of March 31, 2022, was $21.6 million. Options The Company’s outstanding stock options consisted of the following:
| Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value (in millions)
Options outstanding at January 1, 2022 | 813,965 |  |  | $ | 22.74 |  |  | 3.20 |  | $ | 41.6 |
Options granted | 75,271 |  |  | 55.07 |  |  | — |  |  | — |
Options exercised | (38,500) |  |  | 17.37 |  |  | — |  |  | 0.9 |
Options forfeited | — |  |  | — |  |  | — |  |  | — |
Options outstanding at March 31, 2022 | 850,736 |  |  | $ | 25.84 |  |  | 2.94 |  | $ | 22.8 |
Options exercisable at March 31, 2022 | 591,725 |  |  | $ | 9.33 |  |  | 1.79 |  | $ | 20.7 |
During the three months ended March 31, 2022, options were exercised for 38,500 shares of the Company’s common stock, resulting in proceeds of $0.7 million. During the three months ended March 31, 2021, no stock options were exercised. During the three months ended March 31, 2022, the Company granted 75,271 stock options to certain ApolloMed employees and Board members. The options granted during the three months ended March 31, 2022 were recognized at fair value, as determined using the Black-Scholes option pricing model as follows:
March 31, 2022 |
Expected term | 2.00 years - 2.25 years
Expected volatility | 71.47% - 75.15%
Risk-free interest rate | 1.02% - 1.06%
Market value of common stock | $20.23 - $22.73
Annual dividend yield | 0 | %
Forfeiture rate | 0 | %
Restricted Stock The Company grants restricted stock to officers and employees which are earned based on service conditions. The grant date fair value of the restricted stock is that day’s closing market price of the Company’s common stock. During the three months ended March 31, 2022, the Company granted restricted stock totaling 76,828 shares, including 49,124 restricted stock with performance conditions, with a weighted average grant date fair value of $50.76. Restricted stock with performance conditions are recognized to the extent the performance conditions are probable of being achieved. The grant date fair value of restricted stock and restricted stock with performance conditions that are probable of being achieved were $3.9 million and will be recognized on a straight-line basis over the awards’ vesting period. Warrants The Company’s outstanding warrants consisted of the following:
| Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value (in millions)
Warrants outstanding at January 1, 2022 | 1,001,740 |  |  | 10.49 |  |  | 0.94 |  | 63.1 |
Warrants granted | — |  |  | — |  |  | — |  |  | — |
Warrants exercised | (86,235) |  |  | 10.49 |  |  | — |  |  | 3.6 |
Warrants expired/forfeited | — |  |  | — |  |  | — |  |  | — |
Warrants outstanding at March 31, 2022 | 915,505 |  |  | $ | 10.49 |  |  | 0.69 |  | $ | 34.8 |
Exercise Price Per Share |  | Warrants Outstanding |  | Weighted Average Remaining Contractual Life |  | Warrants Exercisable |  | Weighted Average Exercise Price Per Share
$ | 10.00 |  |  | 470,827 |  | 0.69 |  | 470,827 |  |  | $ | 10.00 |
11.00 |  |  | 444,678 |  | 0.69 |  | 444,678 |  |  | $ | 11.00 |
$ 10.00 – 11.00 |  | 915,505 |  |  | 0.69 |  | 915,505 |  |  | $ | 10.49 |
During the three months ended March 31, 2022 and 2021, common stock warrants were exercised for 86,235 and 421,002 shares of the Company’s common stock, respectively, which resulted in proceeds of approximately $0.9 million and $4.3 million, respectively. The exercise price ranged from $10.00 to $11.00 per share for the exercises during the three months ended March 31, 2022, and $9.00 to $11.00 per share for the exercises during the three months ended March 31, 2021, respectively.

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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