Quarterly report pursuant to Section 13 or 15(d)

Stock Options, Warrants and Restricted Common Stock

v3.20.2
Stock Options, Warrants and Restricted Common Stock
6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
Stock Options, Warrants and Restricted Common Stock

Note 9. Stock Options, Warrants and Restricted Common Stock

Stock based compensation:

The Company’s stock-based compensation expenses recognized during the three and six months ended June 30, 2020 and 2019, were attributable to selling, general and administrative expenses, which are included in the accompanying unaudited condensed interim consolidated statements of operations.

The Company recognized total stock-based compensation expense during the three and six months ended June 30, 2020 and 2019, granted under the Equity Plan, from the following categories (in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

2020

2019

2020

2019

Restricted stock awards under the Plan

$

467

$

115

$

2,381

$

292

Stock option awards under the Plan

-

-

-

58

Total stock-based compensation

$

467

$

115

$

2,381

$

350

14


Index

Riot Blockchain, Inc. and Subsidiaries

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

Restricted common stock awards:

A summary of the Company’s unvested restricted common stock awards activity in the six months ended June 30, 2020 is presented here:

Number of Shares

Weighted Average Grant-Date

Fair Value

Unvested at January 1, 2020

1,524,499

$

1.37

 

Vested

(1,755,403)

$

1.36

 

Granted

1,544,359

$

1.27

 

Unvested at June 30, 2020

1,313,455

$

1.28

 

On February 7, 2020, the Company issued 122,377 shares of common stock as disclosed above, and 5,000 vested restricted stock units to an officer of the Company pursuant to the Equity Plan.

On February 7, 2020, in relation to its amended and restated employment agreement with its Chief Executive Officer and Chief Financial Officer, the Company awarded 209,790 restricted common stock units, which vest in four equal quarterly installments, with each quarterly installment vesting as of the end of each quarter pursuant to the Equity Plan.

On February 27, 2020, for 2020 services the Company awarded 1,212,192 restricted common stock units vesting over a one-year period to directors and certain employees of the Company issued pursuant to the Equity Plan.

The total fair value of restricted stock rights granted during the six months ended June 30, 2020 was approximately $2.0 million. The fair value of each restricted stock right was based upon the closing stock price on the grant date.

The fair value of restricted stock rights is measured based on their fair value on the date of grant and amortized over the vesting period of twelve to twenty-four months. As of June 30, 2020, there was approximately $1.2 million of unrecognized compensation cost related to unvested restricted common stock awards, which is expected to be recognized over a remaining weighted-average vesting period of approximately four months.

Stock incentive plan options:

As of June 30, 2020, 12,000 stock options were outstanding under the Equity Plan, with a weighted average exercise price of $4.09, and a weighted average remaining contractual term of approximately 3.2 years. The stock options are 100% vested with zero intrinsic value.

Other common stock purchase warrants:

Following is a summary of outstanding warrants that were issued outside of the Equity Plan for the six months ended June 30, 2020:

Shares

Underlying

Options/Warrants

Weighted

Average

Exercise

Price

Weighted

Average

Remaining

Contractual Term (Years)

Aggregate

Intrinsic Value

Outstanding at January 1, 2020

3,574,257

$

19.48

 

2.9

 

$

-

 

Forfeited

(20,000)

$

3.50

 

-

 

 

Outstanding at June 30, 2020

3,554,257

$

19.57

 

2.4

 

$

534,280

 

 

 

 

 

Exercisable at June 30, 2020

3,554,257

$

19.57

 

2.4

 

$

534,280

 

The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the Company’s closing stock price on June 30, 2020 and the exercise price, multiplied by the number of in-the-money warrants) that would have been received by the warrant holders, had all warrant holders exercised their warrants on June 30, 2020.