Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.21.2
Stock-Based Compensation
6 Months Ended
Jun. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

Note 14: Stock-Based Compensation

The Company has adopted the 2019 Plan that allows for the grant of stock options, stock appreciation rights and stock awards for a total of 3,000,000 shares of common stock. On December 1st of each year, pursuant to the “Evergreen” provision of the 2019 Plan, the number of shares available under the plan shall be increased by an amount equal to 5% of the outstanding common stock on December 1st of that year or such lower amount as determined by the Board of Directors. In December 2020, the number of shares available for issuance under the 2019 Plan was increased by 1,522,171. The total number of shares authorized for issuance under the 2019 Plan as of June 30, 2021 is 4,989,706. As of June 30, 2021, 176,809 shares are available for future grants under the 2019 Plan.

Stock Options:

Stock options are exercisable generally for a period of 10 years from the date of grant and generally vest over four years. The weighted average grant-date fair value of the Baudax Bio options awarded to employees during the six months ended June 30, 2021 and 2020 was $0.78 and $2.23, respectively.

Under the 2019 Plan, the fair value of the Baudax Bio options was estimated on the date of grant using a Black-Scholes option pricing model with the following weighted average assumptions:

 

 

 

 

June 30,

 

 

 

2021

 

 

2020

 

Expected option life

 

5.5 years

 

 

6 years

 

Expected volatility

 

75.37%

 

 

73.75%

 

Risk-free interest rate

 

0.78%

 

 

0.42%

 

Expected dividend yield

 

 

 

 

 

 

 

The following table summarizes Baudax Bio stock option activity during the six months ended June 30, 2021:

 

 

 

Number of
shares

 

 

Weighted
average
exercise
price

 

 

Weighted
average
remaining
contractual life

Balance, December 31, 2020

 

 

2,284,298

 

 

$

3.10

 

 

9.1 years

Granted

 

 

1,494,875

 

 

$

1.26

 

 

 

Expired/forfeited/cancelled

 

 

(333,664

)

 

$

1.71

 

 

 

Balance, June 30, 2021

 

 

3,445,509

 

 

$

2.44

 

 

8.5 years

Vested

 

 

1,161,356

 

 

$

2.87

 

 

7.4 years

Vested and expected to vest

 

 

3,445,509

 

 

$

2.44

 

 

8.5 years

 

Included in the table above are 577,377 stock options outstanding as of June 30, 2021 that were granted outside of the plan. The grants were made pursuant to the Nasdaq inducement grant exception in accordance with Nasdaq Listing Rule 5635(c)(4).

Restricted Stock Units (RSUs):

The following table summarizes Baudax Bio RSUs activity during the six months ended June 30, 2021:

 

 

 

Number of
shares

 

Balance, December 31, 2020

 

 

991,012

 

Granted

 

 

603,758

 

Vested and settled

 

 

(338,741

)

Expired/forfeited/cancelled

 

 

(101,803

)

Balance, June 30, 2021

 

 

1,154,226

 

Expected to vest

 

 

1,154,226

 

 

 

Included in the table above are 165,727 time-based RSUs outstanding as of June 30, 2021 that were granted outside of the plan. The grants were made pursuant to the Nasdaq inducement grant exception in accordance with Nasdaq Listing Rule 5635(c)(4).

Stock-Based Compensation Expense:

Stock-based compensation expense for the six months ended June 30, 2021 and 2020 was $3,207 and $4,942, respectively. For the current year, this represents stock-based compensation for the Baudax Bio awards, including $177 of liability-classified awards, as well as stock-based compensation from the Recro Equity Plan for the acceleration of vesting for Baudax Bio employees in their Recro awards. For the prior year, this represents stock-based compensation from the 2019 Plan as well as stock-based compensation from the Recro Equity Plan for certain Baudax Bio employees who were continuing to vest in their Recro awards but were not performing services to Recro.

As of June 30, 2021, there was $6,014 of unrecognized compensation expense related to unvested options and time-based RSUs that are expected to vest and will be expensed over a weighted average period of 1.8 years. As of June 30, 2021, there was $1,733 of unrecognized compensation expense related to unvested performance-based RSUs.

The aggregate intrinsic value represents the total amount by which the fair value of the common stock subject to options exceeds the exercise price of the related options. As of June 30, 2021, there was no aggregate intrinsic value of the vested and unvested options.