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Stockholders’ Deficit
 3 Months Ended
Jun. 30, 2021
Stockholders' Equity Note [Abstract]  
Stockholders’ Deficit

Note 17 — Stockholders’ Deficit 

 

Issuance of Restricted Shares of Common Stock for Services to Consultants and Vendors

 

The Company incurred $0.4 million in accounts payable and accrued liabilities for stock earned by its consultants, but not yet issued. The remaining unrecognized compensation cost of $0.2 million is expected to be recorded over the next year as the shares vest.

 

During the three months ended June 30, 2020, the Company incurred $0.5 million in accounts payable and accrued liabilities for stock earned by its consultants, but not yet issued.

 

Issuance of Common Stock to Certain Music Partner

 

In June 2020, the Company entered into a new two-year license agreement with a certain music partner which owns and license rights to Slacker to certain sound recordings. Pursuant to this agreement, the Company agreed to certain minimum yearly guarantee payments and issued 264,000 shares of its restricted common stock to such music partner in consideration of all payments due to the music partner prior the date of the agreement.

 

2016 Equity Incentive Plan

 

The Company’s board of directors and stockholders approved the Company’s 2016 Equity Incentive Plan, as amended (the “2016 Plan”) which reserved a total of 12,600,000 shares of the Company’s common stock for issuance. On September 17, 2020, our stockholders approved the amendment to the 2016 Plan to increase the number of shares available for issuance under the plan by 5,000,000 shares increasing the total up to 17,600,000 shares, which plan we formally increased on June 29, 2021. Incentive awards authorized under the 2016 Plan include, but are not limited to, nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units, performance grants intended to comply with Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), and stock appreciation rights. If an incentive award granted under the 2016 Plan expires, terminates, is unexercised or is forfeited, or if any shares are surrendered to the Company in connection with the exercise of an incentive award, the shares subject to such award and the surrendered shares will become available for further awards under the 2016 Plan.

 

The Company recognized share-based compensation expense of $5.1 million and $2.9 million during the quarters ended June 30, 2021 and 2020, respectively. The total tax benefit recognized related to share-based compensation expense was $0 for the quarters ended June 30, 2021 and 2020.