XML 49 R39.htm IDEA: XBRL DOCUMENT v3.22.2
Stockholder's Equity (Tables)
 6 Months Ended
Jun. 30, 2022
Summary of Issued Shares of Common Stock The Company issued the following shares of common stock:

 

 

Three Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

 

Shares

 

 

Average Price per Share

 

 

Total
(in thousands)

 

 

Shares

 

 

Average Price per Share

 

 

Total
(in thousands)

 

 

Acquisitions

 

—

 

 

$

—

 

 

$

—

 

 

 

9,322

 

 

$

50.95

 

 

$

475

 

 

Exercise of options

 

3,575

 

 

 

15.15

 

 

 

54

 

 

 

94,090

 

 

 

9.58

 

 

 

901

 

 

Restricted shares, net (1)

 

—

 

 

 

—

 

 

 

—

 

 

 

2,112

 

 

 

56.31

 

 

 

—

 

 

Payment of earn-out liability

 

—

 

 

 

—

 

 

 

—

 

 

 

539,607

 

 

 

46.33

 

 

 

25,000

 

 

Payment of purchase price true up

 

—

 

 

 

—

 

 

 

—

 

 

 

24,200

 

 

 

44.81

 

 

 

1,084

 

 

Total

 

3,575

 

 

$

15.15

 

 

$

54

 

 

 

669,331

 

 

$

41.20

 

 

$

27,460

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

 

Shares

 

 

Average Price per Share

 

 

Total
(in thousands)

 

 

Shares

 

 

Average Price per Share

 

 

Total
(in thousands)

 

 

Acquisitions

 

—

 

 

$

—

 

 

$

—

 

 

 

81,062

 

 

$

33.88

 

 

$

2,746

 

 

Exercise of warrants (1)

 

—

 

 

 

—

 

 

 

—

 

 

 

67,713

 

 

 

17.19

 

 

 

—

 

 

Exercise of options

 

34,182

 

 

 

14.15

 

 

 

483

 

 

 

424,150

 

 

 

7.28

 

 

 

3,086

 

 

Restricted shares, net (1)

 

25,289

 

 

 

66.58

 

 

 

—

 

 

 

38,929

 

 

 

31.31

 

 

 

—

 

 

Payment of earn-out liability

 

—

 

 

 

—

 

 

 

—

 

 

 

539,607

 

 

 

46.33

 

 

 

25,000

 

 

Payment of purchase price
   true up

 

—

 

 

 

—

 

 

 

—

 

 

 

24,200

 

 

 

44.81

 

 

 

1,084

 

 

Total

 

59,471

 

 

$

36.44

 

 

$

483

 

 

 

1,175,661

 

 

$

29.17

 

 

$

31,916

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Represents the non-cash release of common shares due to the exercise of warrants and the vesting of restricted stock.
Schedule of Share Authorized to be Issue and Available for Grant The following number of shares were authorized to be issued and available for grant:

 

 

 

June 30, 2022

 

 

 

2017 Plan

 

 

2013 Plan

 

 

Total

 

Shares authorized to be issued

 

 

8,139,987

 

 

 

2,037,144

 

 

 

10,177,131

 

Shares available for grant(1)

 

 

445,244

 

 

 

—

 

 

 

445,244

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2021

 

 

 

2017 Plan

 

 

2013 Plan

 

 

Total

 

Shares authorized to be issued

 

 

3,944,750

 

 

 

2,047,269

 

 

 

5,992,019

 

Shares available for grant

 

 

1,609,687

 

 

 

—

 

 

 

1,609,687

 

 

(1) In January 2022 the Board of Directors ratified the addition of 1,185,112 shares of common stock to the number of shares available for issuance under the 2017 Plan pursuant to the annual increase provision of such plan. Unless the Board of Directors determines otherwise, additional annual increases will be effective on each January 1, through January 1, 2027. The 2017 Plan permits the company to settle awards, if and when vested, in cash at its discretion. Pursuant to the terms of the 2017 Plan, the number of shares authorized for issuance thereunder will only be reduced with respect to shares of common stock actually issued upon exercise or settlement of an award. Shares of common stock subject to awards that have been canceled, expired, forfeited or otherwise not issued under an award and shares of common stock subject to awards settled in cash do not count as shares of common stock issued under the 2017 Plan. Shares available for grant exclude awards of stock appreciation rights approved in December 2021 that are subject to vesting based on the achievement of certain market conditions, which have not yet been, and may not be, achieved. At maximum level of achievement these awards would represent the right to receive an aggregate of 3,000,000 shares of common stock.
Schedule of Stock Compensation Expense

Total stock compensation expense for the Plans was as follows:

 

 

Three Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

 

2017 plan

 

 

2013
plan

 

 

 

 

 

2017 plan

 

 

2013
plan

 

 

 

 

 

 

Options

 

 

Restricted
Stock

 

 

SARs

 

 

Options

 

 

Total

 

 

Options

 

 

Restricted
Stock

 

 

Options

 

 

Total

 

Cost of revenue

 

$

371

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

371

 

 

$

290

 

 

$

—

 

 

$

—

 

 

$

290

 

Selling, general and
   administrative expense

 

 

2,254

 

 

 

6,017

 

 

 

2,290

 

 

 

—

 

 

 

10,561

 

 

 

1,790

 

 

 

330

 

 

 

6

 

 

 

2,126

 

Total

 

$

2,625

 

 

$

6,017

 

 

$

2,290

 

 

$

—

 

 

$

10,932

 

 

$

2,080

 

 

$

330

 

 

$

6

 

 

$

2,416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

 

2017 plan

 

 

2013
plan

 

 

 

 

 

2017 plan

 

 

2013
plan

 

 

 

 

 

 

Options

 

 

Restricted
Stock

 

 

SARs

 

 

Options

 

 

Total

 

 

Options

 

 

Restricted
Stock

 

 

Options

 

 

Total

 

Cost of revenue

 

$

665

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

665

 

 

$

896

 

 

$

—

 

 

$

10

 

 

$

906

 

Selling, general and
   administrative expense

 

 

4,233

 

 

 

11,809

 

 

 

4,650

 

 

 

—

 

 

 

20,692

 

 

 

2,794

 

 

 

512

 

 

 

9

 

 

 

3,315

 

Total

 

$

4,898

 

 

$

11,809

 

 

$

4,650

 

 

$

—

 

 

$

21,357

 

 

$

3,690

 

 

$

512

 

 

$

19

 

 

$

4,221

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Summary of Performance Hurdles The performance hurdles shall be deemed achieved if the average trading price per share of the Company’s common stock equals or exceeds the following stock prices:

 

SARs Stock Price Performance Hurdle

 

Portion of SARs Subject to Performance Hurdle

$

133.58

 

1/3

$

166.98

 

1/3

$

200.37

 

1/3
Summary of Weighted Average Assumptions Used in Black-Sholes Option-pricing Model

The following weighted-average assumptions were used in the Black-Sholes option-pricing model calculation:

 

 

 

June 30,

 

 

June 30,

 

 

 

2022

 

 

2021

 

Common stock value (per share)

 

$

44.01

 

 

$

38.23

 

Expected volatility

 

 

33.45

%

 

 

58.22

%

Risk-free interest rate

 

 

1.78

%

 

 

0.73

%

Expected life (years)

 

 

6.35

 

 

 

6.22

 

Forfeiture rate

 

None

 

 

None

 

Dividend rate

 

None

 

 

None

 
Schedule of Common Stock Reserved for Future Issuance The Company has reserved certain stock of its authorized but unissued common stock for possible future issuance in connection with the following:

 

 

 

June 30,

 

 

 

2022

 

 

2021

 

Montrose 2013 Stock Incentive Plan

 

 

877,689

 

 

 

2,047,269

 

Montrose 2017 Stock Incentive Plan(1)

 

 

7,769,931

 

 

 

3,944,750

 

Total

 

 

8,647,620

 

 

 

5,992,019

 

 

 

(1) In January 2022, the Board of Directors ratified the addition of 1,185,112 shares of common stock to the number of shares available for issuance under the 2017 Plan pursuant to the annual increase provision of such plan. Unless the Board of Directors determines otherwise, additional annual increases will be effective on each January 1, through January 1, 2027. The 2017 Plan permits the company to settle awards, if and when vested, in cash at its discretion. Pursuant to the terms of the 2017 Plan, the number of shares authorized for issuance thereunder will only be reduced with respect to shares of common stock actually issued upon exercise or settlement of an award. Shares of common stock subject to awards that have been canceled, expired, forfeited or otherwise not issued under an award and shares of common stock subject to awards settled in cash do not count as shares of common stock issued under the 2017 Plan. The Company expects to have sufficient shares available under the 2017 Plan to satisfy the future settlement of outstanding awards. Shares reserved for future issuance include an assumed 3,000,000 shares with respect to the stock appreciation rights units grant made in December 2021 at maximum level of achievement, but that are subject to vesting based on the achievement of certain market conditions, which have not yet been, and may not be, achieved.
Montrose Amended & Restated 2017 Stock Incentive Plan  
Schedule of Restricted Stock Activity

RSA and RSU activity was as follows:

 

 

Three Months Ended June 30,

 

 

2022

 

 

2021

 

 

Shares

 

 

Average Price per Share

 

 

Fair Value
(in thousands)

 

 

Shares

 

 

Average Price per Share

 

 

Fair Value
(in thousands)

 

Awards granted

 

—

 

 

$

—

 

 

$

—

 

 

 

4,534

 

 

$

56.31

 

 

$

255

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

Shares

 

 

Average Price per Share

 

 

Fair Value
(in thousands)

 

 

Shares

 

 

Average Price per Share

 

 

Fair Value
(in thousands)

 

Awards granted

 

106,324

 

 

$

46.82

 

 

$

4,978

 

 

 

19,066

 

 

$

36.99

 

 

$

705

 
Summary of Stock Option Activity The following summarizes the options activity of the 2017 Plan:

 

 

 

Options to
Purchase
Common
Stock

 

 

Weighted-
Average
Exercise
Price per
Share

 

 

Weighted
Average
Grant Date
Fair Value
per Share

 

 

Weighted
Average
Remaining
Contract Life
(in Years)

 

 

Aggregate
Intrinsic
Value
of In-The-
Money
Options (in
Thousands)

 

Outstanding as of January 1, 2021

 

 

1,840,229

 

 

$

23

 

 

$

12

 

 

 

9.09

 

 

$

15,598

 

Granted

 

 

232,470

 

 

 

38

 

 

 

21

 

 

 

—

 

 

 

—

 

Forfeited/ cancelled

 

 

(13,425

)

 

 

27

 

 

 

—

 

 

 

—

 

 

 

—

 

Expired

 

 

(1,250

)

 

 

18

 

 

 

—

 

 

 

—

 

 

 

—

 

Exercised

 

 

(33,918

)

 

 

20

 

 

 

—

 

 

 

—

 

 

 

1,014

 

Outstanding as of June 30, 2021

 

 

2,024,106

 

 

 

25

 

 

 

13

 

 

 

8.74

 

 

 

58,785

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding as of January 1, 2022

 

 

2,036,729

 

 

$

26

 

 

$

14

 

 

 

8.30

 

 

$

91,030

 

Granted

 

 

563,084

 

 

 

44

 

 

 

16

 

 

 

—

 

 

 

—

 

Forfeited/ cancelled

 

 

(38,887

)

 

 

35

 

 

 

—

 

 

 

—

 

 

 

—

 

Exercised

 

 

(14,197

)

 

 

25

 

 

 

—

 

 

 

—

 

 

 

393

 

Outstanding as of June 30, 2022

 

 

2,546,729

 

 

$

30

 

 

$

15

 

 

 

8.22

 

 

$

19,199

 

Exercisable at June 30, 2022

 

 

559,543

 

 

 

29

 

 

 

—

 

 

 

7.07

 

 

 

3,950

 
Montrose Amended and Restated 2013 Stock Option Plan  
Summary of Stock Option Activity The following summarizes the activity of the 2013 Plan:

 

 

 

Options to
Purchase
Common
Stock

 

 

Weighted-
Average
Exercise
Price per
Share

 

 

Weighted
Average
Grant Date
Fair Value
per Share

 

 

Weighted
Average
Remaining
Contract Life
(in Years)

 

 

Aggregate
Intrinsic
Value
of In-The-
Money
Options (in
Thousands)

 

Outstanding as of January 1, 2021

 

 

1,787,869

 

 

$

6

 

 

$

1

 

 

 

5.40

 

 

$

43,867

 

Exercised

 

 

(389,232

)

 

 

6

 

 

 

—

 

 

 

—

 

 

 

15,922

 

Outstanding as of June 30, 2021

 

 

1,398,637

 

 

 

6

 

 

 

1

 

 

 

4.88

 

 

 

65,982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding as of January 1, 2022

 

 

897,674

 

 

$

6

 

 

$

2

 

 

 

4.37

 

 

$

57,529

 

Exercised

 

 

(19,985

)

 

 

6

 

 

 

—

 

 

 

—

 

 

 

859

 

Outstanding as of June 30, 2022

 

 

877,689

 

 

$

6

 

 

$

2

 

 

 

3.88

 

 

$

23,991

 

Exercisable at June 30, 2022

 

 

877,689

 

 

 

6

 

 

 

—

 

 

 

3.88

 

 

 

23,991