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STOCK-BASED COMPENSATION | 9 Months Ended
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Sep. 30, 2021
Share-based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The stock-based compensation expense recognized on all share-based awards was $2.6 million and $64.3 million for the three and nine months ended September 30, 2021 and $0.9 million and $7.6 million for the three and nine months ended September 30, 2020. As of September 30, 2021, there was $32.1 million of unrecognized compensation related to all unvested awards. LDI Awards Effective upon the completion of the IPO, the Company adopted the 2021 Plan. The 2021 Plan allows for the grant of stock options, restricted stock, RSUs, and stock appreciation rights. The Company reserved a total of 16,250,000 shares of common stock for issuance pursuant to the 2021 Plan, which amount shall be increased on the first day of each fiscal year during the term of the 2021 Plan commencing with the 2022 fiscal year by (1) 2% of the total number of shares of common stock outstanding on the last day of the immediately preceding fiscal year, or (ii) a lesser amount determined by the Company's board of directors. There are currently only RSUs granted under the 2021 Plan. The following is a summary of RSU activity for the three and nine months ended September 30, 2021.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2021 |  |
|  |  | Weighted Average |  |  |  | Weighted Average |  |  |  |
|  |  | Grant Date |  |  |  | Grant Date |  |  |  |
| Shares |  | Fair Value |  | Shares |  | Fair Value |  |  |  |
Unvested - beginning of period | 1,069,573 |  |  | $ | 22.02 |  |  | — |  |  | $ | — |  |  |  |  |
Granted | 516,234 |  |  | 10.40 |  |  | 3,884,350 |  |  | 23.05 |  |  |  |  |
Vested | (14,654) |  |  | 14.06 |  |  | (2,248,197) |  |  | 26.29 |  |  |  |  |
Forfeited/Cancelled | — |  |  | — |  |  | (65,000) |  |  | 26.45 |  |  |  |  |
Unvested - end of period | 1,571,153 |  |  | 18.27 |  |  | 1,571,153 |  |  | 18.27 |  |  |  |  |
Total compensation expense for the LDI awards was $1.9 million and $62.3 million for the three and nine months ended ended September 30, 2021, respectively. Unrecognized compensation expense related to these RSUs was $25.6 million and is expected to be recognized over a weighted average period of 3.64 years. Holdco Units Prior to the IPO, the Company’s 2009 Incentive Equity Plan, 2012 Incentive Equity Plan, and 2015 Incentive Equity Plan (collectively, the “Plans”) provided for the granting of Class Z, Class Y, Class X, and Class W Common Units of LD Holdings to employees, managers, consultants, and advisors of the Company and its subsidiaries. Participants that received grants or purchased Class Z, Class Y, Class X, or Class W Common Units of LD Holdings pursuant to the Plans were required to become a party to the Limited Liability Company Agreement. As part of the IPO and reorganization discussed in Note 1- Description of Business, Presentation, and Summary of Significant Accounting Policies, any outstanding units were equitably adjusted and replaced with a single new class of LLC Units that were exchanged on a one-for-one basis for Class A Holdco Units. No further awards will be granted under the Plans as both the Plans and LLC Agreement were terminated. The following table presents a summary of the changes in awards subsequent to the conversion into Class A Holdco Units for the three and nine months ended ended September 30, 2021:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2021 |  | 2021
|  | Shares |  | Weighted Average Grant Date Fair Value |  | Shares |  | Weighted Average Grant Date Fair Value
Unvested - beginning of period |  | 14,650,795 |  |  | $ | 0.50 |  |  | 19,632,883 |  |  | $ | 0.50 |
Granted |  | — |  |  | — |  |  | — |  |  | — |
Vested |  | (1,420,510) |  |  | 0.49 |  |  | (4,816,920) |  |  | 0.51 |
Forfeited/Cancelled |  | (90,704) |  |  | 0.50 |  |  | (1,676,382) |  |  | 0.52 |
Unvested - end of period |  | 13,139,581 |  |  | 0.50 |  |  | 13,139,581 |  |  | 0.50 |
The following table presents a summary of the changes in Class Z, Class Y, Class X, Class W and Class V Common Units for the period January 1, 2021 through February 10, 2021 prior to the conversion to Class A Holdco Units described above and for the three and nine months ended September 30, 2020.
|  | January 1, 2021 through February 10, 2021
|  | Shares |  | Weighted Average Grant Date Fair Value
Unvested - beginning of period |  | 610,497,758 |  |  | $ | 0.016 |
Vested |  | (12,656,379) |  |  | 0.016 |
Forfeited/Cancelled |  | (3,552,286) |  |  | 0.016 |
Unvested - end of period |  | 594,289,093 |  |  | 0.016 |
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2020 |  | 2020
|  | Shares |  | Weighted Average Grant Date Fair Value |  | Shares |  | Weighted Average Grant Date Fair Value
Unvested - beginning of period |  | 745,740,350 |  |  | $ | 0.016 |  |  | 100,679,480 |  |  | $ | 0.006 |
Granted |  | — |  |  | — |  |  | 1,227,342,174 |  |  | 0.016 |
Vested |  | (26,693,033) |  |  | 0.016 |  |  | (533,303,418) |  |  | 0.016 |
Forfeited/Cancelled |  | — |  |  | — |  |  | (75,670,919) |  |  | 0.013 |
Unvested - end of period |  | 719,047,317 |  |  | 0.016 |  |  | 719,047,317 |  |  | 0.016 |
The following assumptions were used for the grants during the nine months ended September 30, 2020:
Risk-free interest rate |  |  |  |  |  |  | 0.30 | %
Expected life |  |  |  |  |  |  | 1.7 years
Expected volatility |  |  |  |  |  |  | 160.0 - 175.0%
Total compensation expense associated with the Holdco Units was $0.7 million and $2.1 million for the three and nine months ended September 30, 2021 and $0.9 million and $7.6 million for the three and nine months ended September 30, 2020, respectively. At September 30, 2021 and December 31, 2020, the total unrecognized compensation cost related to unvested Holdco unit grants was $6.5 million and $9.5 million, respectively. This cost is expected to be recognized over the next 2.99 years.

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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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