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Compensation Plans
 6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Compensation Plans

12. 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 Stock Incentive Plan (the “2016 Plan”), (c) stock option awards, restricted stock awards and units, unrestricted stock awards, and stock appreciation rights to employees, directors and consultants under the 2019 Equity Incentive Plan (the “2019 Plan”), (d) stock option awards, restricted stock awards and units, unrestricted stock awards, and stock appreciation rights to employees, directors and consultants under the Equity Incentive Plan (the “2022 Plan”) (collectively, the 2016 Plan, 2019 Plan and 2022 Plan are referred to as the “Equity Plans”), (e) stock option awards outside of the 2016 Plan, 2019 Plan and 2022 Plan to certain officers, directors and employees (referred to as the “Outside Options”), (f) common stock warrants to the Company’s publisher partners (referred to as the “Publisher Partner Warrants”), and (g) common stock warrants to ABG-SI, LLC (referred to as the “ABG Warrants”). Effective with the adoption of the 2022 Plan, the Company will not issue new awards under the 2016 Plan and 2019 Plan.

 

 

Stock-based compensation and equity-based expense charged to operations or capitalized during the three and six months ended June 30, 2022 and 2021 are summarized as follows:

  

   Restricted                 
   Stock   Equity   Outside   ABG     
   Awards   Plans   Options   Warrants   Totals 
During the Three Months Ended June 30, 2022                         
Cost of revenue  $404   $2,269   $-   $-   $2,673 
Selling and marketing   -    739    -    -    739 
General and administrative   -    5,207    -    480    5,687 
Total costs charged to operations   404    8,215    -    480    9,099 
Capitalized platform development   -    438    -    -    438 
Total stock-based compensation  $404   $8,653   $-   $480   $9,537 
                          
During the Three Months Ended June 30, 2021                         
Cost of revenue  $25   $1,728   $1   $-   $1,754 
Selling and marketing   -    1,513    74    -    1,587 
General and administrative   142    4,237    -    396    4,775 
Total costs charged to operations   167    7,478    75    396    8,116 
Capitalized platform development   4    544    2    -    550 
Total stock-based compensation  $171   $8,022   $77   $396   $8,666 

 

   Restricted                 
   Stock   Equity   Outside   ABG     
   Awards   Plans   Options   Warrants   Totals 
During the Six Months Ended June 30, 2022                         
Cost of revenue  $834   $3,996   $-   $-   $4,830 
Selling and marketing   -    1,339    -    -    1,339 
General and administrative   -    9,196    105    996    10,297 
Total costs charged to operations   834    14,531    105    996    16,466 
Capitalized platform development   -    1,125    -    -    1,125 
Total stock-based compensation  $834   $15,656   $105   $996   $17,591 
                          
During the Six Months Ended June 30, 2021                         
Cost of revenue  $49   $3,146   $3   $-   $3,198 
Selling and marketing   -    2,489    149    -    2,638 
General and administrative   145    6,481    -    753    7,379 
Total costs charged to operations   194    12,116    152    753    13,215 
Capitalized platform development   9    846    4    -    859 
Total stock-based compensation  $203   $12,962   $156   $753   $14,074 

 

 

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, 2022 was as follows:

  

   Restricted                 
   Stock   Equity   Outside   ABG     
   Awards   Plans   Options   Warrants   Totals 
Unrecognized compensation cost  $1,521   $43,337   $-   $1,508   $46,366 
Expected weighted-average period expected to be recognized (in years)   0.93    1.89    -    1.50    1.85 

 

Further details as of the date these condensed consolidated financial statements were issued are provided under the heading Compensation Plans in Note 17.

 

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 Plan and 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. The Stock Options Repricing was approved by the Board and stockholders. 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 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 the condensed consolidated statement of operations, and $5,918 will be recognized over the remaining vesting term of the original award at the repricing date.