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STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2021
Retirement Benefits [Abstract]  
STOCK-BASED COMPENSATION

16. STOCK-BASED COMPENSATION

 

The options outstanding as of September 30, 2021, have been classified by exercise price, as follows:

 

Outstanding   Exercisable 
        Weighted             
        Average   Weighted       Weighted 
        Remaining   Average       Average 
Exercise   Number   Contractual   Exercise   Number   Exercise 
Price   Outstanding   Life (Years)   Price   Exercisable   Price 
$2.51    1,760,000   9.90   $2.51    141,900   $2.51 
$480 - $560    894   4.20   $537.34    774   $533.84 
$1,208 - $1,352    25   2.50   $1,336.00    25   $1,336.00 
$480 - $1,352    1,760,919   9.90   $2.80    142,699   $5.63 
                          
Issuances Outside of Plans
$1.79    

850,000

  

8.97

   $

1.79

    569,591   $1.79 

$2.46 - $2.55

    

2,150,000

   9.58   $

2.54

    -    -  
$1.79 - $2.55    3,000,000   9.41   $2.33    569,591   $1.79 
                          
Total Options
$1.79 - $1,856    4,760,919   9.59   $2.50    712,290   $2.56 

 

 

The total stock-based compensation expense related to stock options and stock awards issued to the Company’s employees, consultants and directors, included in reported net loss for the three and nine months ended September 30, 2021 and 2020, was comprised as follows:

 

                             
   Three Months Ended
September 30,		  

Nine Months Ended

September 30,

 
   2021   2020   2021   2020 
General and administrative  $4,148,000   $20,000   $4,732,000   $272,000 
Total stock-based compensation  $4,148,000   $20,000   $4,732,000   $272,000 

 

A summary of option activity under the Company’s stock option plans as of September 30, 2021, and changes during the nine months ended are as follows:

 

        Outstanding Options 
                  Weighted      
             Weighted   Average      
   Shares        Average   Remaining   Aggregate 
   Available   Number   Exercise   Contractual   Intrinsic 
   for Grant   of Options   Price   Life (years)    Value 
January 1, 2020   103,105    1,388   $636.47   6.33   $0 
Restricted stock awards   (96,875)   —               
Forfeited   463    (463)   780.54          
January 1, 2021   6,693    925   $564.43   4.87   $0 
Authorized   7,500,000                    
Stock options granted   (1,760,000)   1,760,000   $2.51          
Restricted stock awards   (1,070,000)   —               
Forfeited   6    (6)  $1,352          
September 30, 2021   4,676,699    1,760,919   $2.80   9.90   $0 

 

As of September 30, 2021, there was $3.3 million of unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under the Company’s stock incentive plans. That expense is expected to be recognized over a weighted average period of 3.54 years.

 

GWW Stock-Based Compensation

 

On May 25, 2021, GWW issued to Jonathan Read, its Chief Executive Officer, and Timothy Long, its Chief Operating Officer, options to purchase an aggregate total of 100,000 shares of GWW Class A common stock, at an exercise price per share of $14.64. The options vest over a four-year period. Additionally, Messrs. Read and Long were also granted a restricted stock award to acquire an aggregate of 50,000 shares of GWW Class A common stock, vesting annually over a three-year term. As of the date of grant, the authorized share capital of GWW is 1,000,000 shares of Class A common stock, of which 700,000 shares were issued and outstanding, 500,000 shares of Class B common stock of which 500,000 shares were issued and outstanding and 100,000 shares of preferred stock of which no shares of which were outstanding. The stock-based compensation expense related to the options included in reported net loss for the three and nine months ended September 30, 2021 was $42,000 and $587,000, respectively, based on the estimated fair value of the options on the date of issuance. The estimated fair value of the options was based on observable market prices of the Company’s common stock and extrapolated to GWW based upon its relative fair value within the Company as determined by equal weighting of revenues, operating income, and net tangible assets between the Company’s subsidiaries. As of September 30, 2021, there was $472,000 of unrecognized compensation cost related to non-vested stock-based compensation arrangements with Messrs. Read and Long. That cost is expected to be recognized over a weighted average period of 2.7 years.