XML 27 R17.htm IDEA: XBRL DOCUMENT v3.22.1
Compensation Plans
 3 Months Ended
Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Compensation Plans

 

 

11.Compensation Plans

 

The Company provides stock-based compensation in the form of (a) restricted stock awards to certain employees (referred to as the “Restricted Stock Awards”), (b) stock option grants to employees, directors and consultants under the 2016 Plan (as described below), (c) stock option awards, restricted stock awards, unrestricted stock awards, and stock appreciation rights to employees, directors and consultants under the 2019 Plan (as described below), (d) stock option awards outside of the 2016 Plan and 2019 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 March 31, 2022 and 2021 are summarized as follows:

 

  

Restricted

Stock

Awards

  

2016

Plan

  

2019

Plan

   

Outside

Options

  

ABG

Warrants

   Totals 
During the Three Months Ended March 31, 2022                         
Cost of revenue  $430   $14   $1,714    $-   $-   $2,158 
Selling and marketing   -    9    591     -    -    600 
General and administrative   -    48    3,941     105    515    4,609 
Total costs charged to operations   430    71    6,246     105    515    7,367 
Capitalized platform development   -    5    682     -    -    687 
Total stock-based compensation  $430   $76   $6,928    $105   $515   $8,054 
                                
During the Three Months Ended March 31, 2021                               
Cost of revenue  $24   $127   $1,290    $2   $-   $1,443 
Selling and marketing   -    5    972     75    -    1,052 
General and administrative   3    117    2,128     -    356    2,604 
Total costs charged to operations   27    249    4,390     77    356    5,099 
Capitalized platform development   5    3    299     2    -    309 
Total stock-based compensation  $32   $252   $4,689    $79   $356   $5,408 

 

Unrecognized compensation expense and expected weighted-average period to be recognized related to the stock-based compensation awards and equity-based awards as of March 31, 2022 was as follows:

 

   Restricted                   
   Stock   2016   2019   Outside   ABG     
   Awards   Plan   Plan   Options   Warrants   Totals 
Unrecognized compensation cost  $1,925   $-   $44,563   $-   $1,988   $48,476 
Expected weighted-average period expected to be recognized (in years)   1.18    -    1.84    -    1.57    1.81 

 

Stock Option Repricing

 

On March 18, 2022, the Company approved a repricing of certain outstanding stock options (the “Stock Option Repricing”) granted under the Company’s 2016 Stock Incentive Plan (the “2016 Plan”) and the 2019 Equity Incentive Plan (the “2019 Plan”) that had an exercise price above $8.82 per share, including certain outstanding stock options held by senior management of the Company. The Stock Option Repricing also included certain outstanding stock options granted outside of the 2016 Plan and 2019 Plan, which repricing is still subject to stockholder approval. As a result of the Stock Option Repricing, the exercise prices were set to $8.82 per share, which was the closing sale price of the Company’s common stock as listed on the NYSE American exchange on March 18, 2022. Except for the repricing of the stock options under the 2019 Plan, all terms and conditions of each stock option remains in full force and effect. For the repricing of the stock options under the 2019 Plan, the Company (i) modified the exercise price; (ii) will allow cashless exercise as a method of paying the exercise price, and (iii) will waive a lock-up provision in the stock option agreements. All other term and conditions of each of the stock options under the 2019 Plan remains in full force and effect.

 

 

The Stock Option Repricing of approximately 4,343,017 stock option grants (for 340 employees) that were issued to employees of the Company, including senior management, resulted in incremental cost of $6,061, of which $143 was recognized at the time of the Stock Option Repricing for the fully vested awards and included in our condensed consolidated statement of operations, and $5,918 will recognized over the remaining vesting term of the original award at the repricing date.