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Compensation Plans | 6 Months Ended
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Jun. 30, 2021
Equity [Abstract] |
Compensation Plans | 11. Compensation Plans The Company provides stock-based compensation in the form of (a) stock awards to employees and directors, comprised of restricted stock awards and restricted stock units (collectively referred to as the “Restricted Stock Awards”), (b) stock option grants to employees, directors and consultants (referred to as the “Common Stock Awards”) (c) stock option awards, restricted stock awards, unrestricted stock awards, and stock appreciation rights to employees, directors and consultants (collectively the “Common Equity Awards”), (d) stock option awards outside of the 2016 Stock Incentive Plan and 2019 Equity Incentive Plan to certain officers, directors and employees (referred to as the “Outside Options”), (e) common stock warrants to the Company’s publisher partners (referred to as the “Publisher Partner Warrants”), and (f) common stock warrants to ABG-SI, LLC (referred to as the “ABG Warrants”). Stock-based compensation and equity-based expense charged to operations or capitalized during the three months ended June 30, 2021 and 2020 are summarized as follows: Summary of Stock-based Compensation
|  | Restricted |  |  | Common |  |  | Common |  |  |  |  |  | Publisher |  |  |  |  |  |  |
|  | Stock |  |  | Stock |  |  | Equity |  |  | Outside |  |  | Partner |  |  | ABG |  |  |  |
|  | Awards |  |  | Awards |  |  | Awards |  |  | Options |  |  | Warrants |  |  | Warrants |  |  | Totals |
During the Three Months Ended June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue |  | $ | 24,570 |  |  | $ | 19,202 |  |  | $ | 1,708,404 |  |  | $ | 1,455 |  |  | $ | - |  |  | $ | - |  |  | $ | 1,753,631 |
Selling and marketing |  |  | - |  |  |  | 4,891 |  |  |  | 1,507,535 |  |  |  | 74,372 |  |  |  | - |  |  |  | - |  |  |  | 1,586,798 |
General and administrative |  |  | 141,897 |  |  |  | 101,939 |  |  |  | 4,135,866 |  |  |  | - |  |  |  | - |  |  |  | 396,251 |  |  |  | 4,775,953 |
Total costs charged to operations |  |  | 166,467 |  |  |  | 126,032 |  |  |  | 7,351,805 |  |  |  | 75,827 |  |  |  | - |  |  |  | 396,251 |  |  |  | 8,116,382 |
Capitalized platform development |  |  | 4,125 |  |  |  | 2,351 |  |  |  | 540,917 |  |  |  | 2,164 |  |  |  | - |  |  |  | - |  |  |  | 549,557 |
Total stock-based compensation |  | $ | 170,592 |  |  | $ | 128,383 |  |  | $ | 7,892,722 |  |  | $ | 77,991 |  |  | $ | - |  |  | $ | 396,251 |  |  | $ | 8,665,939 |
During the Three Months Ended June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue |  | $ | 35,750 |  |  | $ | 27,970 |  |  | $ | 1,073,674 |  |  | $ | 1,967 |  |  | $ | 27,623 |  |  | $ | - |  |  | $ | 1,166,984 |
Selling and marketing |  |  | 298,187 |  |  |  | 23,783 |  |  |  | 701,925 |  |  |  | 43,489 |  |  |  | - |  |  |  | - |  |  |  | 1,067,384 |
General and administrative |  |  | 135,332 |  |  |  | 138,156 |  |  |  | 819,916 |  |  |  | 95,394 |  |  |  | - |  |  |  | 360,289 |  |  |  | 1,549,087 |
Total costs charged to operations |  |  | 469,269 |  |  |  | 189,909 |  |  |  | 2,595,515 |  |  |  | 140,850 |  |  |  | 27,623 |  |  |  | 360,289 |  |  |  | 3,783,455 |
Capitalized platform development |  |  | 75,709 |  |  |  | 80,608 |  |  |  | 341,642 |  |  |  | 1,652 |  |  |  | - |  |  |  | - |  |  |  | 499,611 |
Total stock-based compensation |  | $ | 544,978 |  |  |  | 270,517 |  |  | $ | 2,937,157 |  |  | $ | 142,502 |  |  | $ | 27,623 |  |  | $ | 360,289 |  |  | $ | 4,283,066 |
|  | Restricted |  |  | Common |  |  | Common |  |  |  |  |  | Publisher |  |  |  |  |  |  |
|  | Stock |  |  | Stock |  |  | Equity |  |  | Outside |  |  | Partner |  |  | ABG |  |  |  |
|  | Awards |  |  | Awards |  |  | Awards |  |  | Options |  |  | Warrants |  |  | Warrants |  |  | Totals |
During the Six Months Ended June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue |  | $ | 49,030 |  |  | $ | 146,265 |  |  | $ | 2,998,778 |  |  | $ | 3,496 |  |  | $ | - |  |  | $ | - |  |  | $ | 3,197,569 |
Selling and marketing |  |  | - |  |  |  | 9,929 |  |  |  | 2,479,048 |  |  |  | 149,178 |  |  |  | - |  |  |  | - |  |  |  | 2,638,155 |
General and administrative |  |  | 145,342 |  |  |  | 219,266 |  |  |  | 6,262,481 |  |  |  | - |  |  |  | - |  |  |  | 752,581 |  |  |  | 7,379,670 |
Total costs charged to operations |  |  | 194,372 |  |  |  | 375,460 |  |  |  | 11,740,307 |  |  |  | 152,674 |  |  |  | - |  |  |  | 752,581 |  |  |  | 13,215,394 |
Capitalized platform development |  |  | 8,948 |  |  |  | 5,071 |  |  |  | 840,951 |  |  |  | 3,782 |  |  |  | - |  |  |  | - |  |  |  | 858,752 |
Total stock-based compensation |  | $ | 203,320 |  |  | $ | 380,531 |  |  | $ | 12,581,258 |  |  | $ | 156,456 |  |  | $ | - |  |  | $ | 752,581 |  |  | $ | 14,074,146 |
During the Six Months Ended June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue |  | $ | 73,326 |  |  | $ | 97,766 |  |  | $ | 2,083,266 |  |  | $ | 3,173 |  |  | $ | 35,662 |  |  | $ | - |  |  | $ | 2,293,193 |
Selling and marketing |  |  | 597,402 |  |  |  | 59,511 |  |  |  | 1,380,204 |  |  |  | 98,867 |  |  |  | - |  |  |  | - |  |  |  | 2,135,984 |
General and administrative |  |  | 158,252 |  |  |  | 309,828 |  |  |  | 1,575,163 |  |  |  | 150,577 |  |  |  | - |  |  |  | 720,578 |  |  |  | 2,914,398 |
Total costs charged to operations |  |  | 828,980 |  |  |  | 467,105 |  |  |  | 5,038,633 |  |  |  | 252,617 |  |  |  | 35,662 |  |  |  | 720,578 |  |  |  | 7,343,575 |
Capitalized platform development |  |  | 145,992 |  |  |  | 121,765 |  |  |  | 597,643 |  |  |  | 4,263 |  |  |  | - |  |  |  | - |  |  |  | 869,663 |
Total stock-based compensation |  | $ | 974,972 |  |  |  | 588,870 |  |  | $ | 5,636,276 |  |  | $ | 256,880 |  |  | $ | 35,662 |  |  | $ | 720,578 |  |  | $ | 8,213,238 |
Unrecognized compensation expense and expected weighted-average period to be recognized related to the stock-based compensation awards and equity-based awards as of June 30, 2021 was as follows: Schedule of Unrecognized Compensation Expense
|  | Restricted |  |  | Common |  |  | Common |  |  |  |  |  | Publisher |  |  |  |  |  |  |
|  | Stock |  |  | Stock |  |  | Equity |  |  | Outside |  |  | Partner |  |  | ABG |  |  |  |
|  | Awards |  |  | Awards |  |  | Awards |  |  | Options |  |  | Warrants |  |  | Warrants |  |  | Totals |
Unrecognized compensation expense |  | $ | 3,178,298 |  |  | $ | 98,636 |  |  | $ | 62,311,494 |  |  | $ | 214,592 |  |  | $ | - |  |  | $ | 3,076,571 |  |  | $ | 68,879,591 |
Expected weighted-average period expected to be recognized (in years) |  |  | 1.93 |  |  |  | 0.19 |  |  |  | 2.30 |  |  |  | 0.69 |  |  |  | - |  |  |  | 1.88 |  |  |  | 2.25 |
Pursuant to an amendment with ABG-SI, LLC on June 4, 2021, the exercise price of 10,994,922 ABG Warrants to acquire shares of the Company's common stock was changed to $0.42 per share from $0.84 per share in exchange for additional benefits under the Sports Illustrated licensing agreement. Further details as of the date these condensed consolidated financial statements were issued or were available to be issued are provided under the heading Compensation Plans in Note 14.

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 2: 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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