XML 61 R44.htm IDEA: XBRL DOCUMENT v3.22.4
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2022
Summary of Issued, Cancelled and Repurchased Shares of Common Stock During the years ended December 31, the Company issued, cancelled and repurchased the following shares of common stock:

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

Shares

 

 

Average
Price
per Share

 

 

Total

 

 

Shares

 

 

Average
Price
per Share

 

 

Total

 

 

Shares

 

 

Average
Price
per Share

 

 

Total

 

Common stock issued
   in connection
   with initial public
   offering

 

 

—

 

 

$

—

 

 

$

—

 

 

 

—

 

 

$

—

 

 

 

—

 

 

 

11,500,000

 

 

$

15.00

 

 

$

172,500

 

Common stock issued
   in connection
   with follow-on
   offering

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,875,000

 

 

 

59.05

 

 

 

169,783

 

 

 

—

 

 

 

—

 

 

 

—

 

Acquisitions

 

 

—

 

 

 

—

 

 

 

—

 

 

 

178,721

 

 

 

46.55

 

 

 

8,320

 

 

 

791,139

 

 

 

31.60

 

 

 

25,000

 

Redemption of series
   A-1 preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,786,739

 

 

 

15.00

 

 

 

26,801

 

Exercise of warrants (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

67,713

 

 

 

17.19

 

 

 

—

 

 

 

2,534,239

 

 

 

0.01

 

 

 

25.00

 

Exercise of options

 

 

101,340

 

 

 

16.21

 

 

 

1,643

 

 

 

959,890

 

 

 

7.54

 

 

 

7,237

 

 

 

47,600

 

 

 

8.05

 

 

 

383.00

 

Restricted shares, net (1)

 

 

25,532

 

 

 

66.30

 

 

 

—

 

 

 

42,263

 

 

 

30.69

 

 

 

—

 

 

 

20,488

 

 

 

24.00

 

 

 

—

 

Payment of earn-out
   liability and purchase
   price true up

 

 

—

 

 

 

—

 

 

 

—

 

 

 

563,807

 

 

 

46.26

 

 

 

26,084

 

 

 

—

 

 

 

—

 

 

 

—

 

Cancellation of shares

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(117,785

)

 

 

17.15

 

 

 

—

 

Total

 

 

126,872

 

 

$

26.29

 

 

$

1,643

 

 

 

4,687,394

 

 

$

45.63

 

 

$

211,424

 

 

 

16,562,420

 

 

$

13.64

 

 

$

224,709

 

___________________________

(1) Represents the non-cash release of shares of common stock 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 as of December 31:

 

 

2017 Plan

 

 

2022

 

 

2021

 

 

2020

 

Shares authorized to be issued

 

5,140,112

 

 

 

3,944,750

 

 

 

2,945,443

 

Shares available for grant(1)

 

367,243

 

 

 

23,153

 

 

 

848,241

 

 

 

 

 

 

 

 

 

 

 

2013 Plan

 

 

2022

 

 

2021

 

 

2020

 

Shares authorized to be issued

 

2,037,019

 

 

 

2,047,269

 

 

 

2,047,269

 

Shares available for grant

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

_______________________

(1) In January 2023 the Board of Directors ratified the addition of 1,189,801 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. See footnote 1 to the table in Common Stock Reserved for Future Issuance below for additional information regarding the December 2021 grant.
Schedule of Stock Compensation Expense

Total stock compensation expense for the Plans was as follows:

 

 

 

2022

 

 

 

2017 plan

 

 

2013 plan

 

 

 

 

 

 

Options

 

 

Restricted Stock

 

 

SARs

 

 

Options

 

 

Total

 

Cost of revenue

 

$

1,507

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,507

 

Selling, general and administrative expense

 

 

8,531

 

 

 

23,972

 

 

 

9,280

 

 

 

—

 

 

 

41,783

 

Total

 

$

10,038

 

 

$

23,972

 

 

$

9,280

 

 

$

—

 

 

$

43,290

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

2017 plan

 

 

2013 plan

 

 

 

 

 

 

Options

 

 

Restricted Stock

 

 

SARs

 

 

Options

 

 

Total

 

Cost of revenue

 

$

1,482

 

 

$

—

 

 

$

—

 

 

$

10

 

 

$

1,492

 

Selling, general and administrative expense

 

 

6,552

 

 

 

1,959

 

 

 

307

 

 

 

11

 

 

 

8,829

 

Total

 

$

8,034

 

 

$

1,959

 

 

$

307

 

 

$

21

 

 

$

10,321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

 

2017 plan

 

 

2013 plan

 

 

 

 

 

 

Options

 

 

Restricted Stock

 

 

SARs

 

 

Options

 

 

Total

 

Cost of revenue

 

$

1,441

 

 

$

—

 

 

$

—

 

 

$

136

 

 

$

1,577

 

Selling, general and administrative expense

 

 

1,793

 

 

 

1,279

 

 

 

—

 

 

 

200

 

 

 

3,272

 

Total

 

$

3,234

 

 

$

1,279

 

 

$

—

 

 

$

336

 

 

$

4,849

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
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 for the years ended December 31:

 

 

 

2022

 

2021

 

2020

Common stock value (per share)

 

$43.74

 

$44.28

 

$21.81

Expected volatility

 

33.44%

 

55.34%

 

46.59%

Risk- free interest rate

 

2.03%

 

0.82%

 

0.65%

Expected life (years)

 

6.98

 

6.40

 

7.00

Forfeiture rate

 

None

 

None

 

None

Dividend rate

 

None

 

None

 

None
Schedule of Common Stock Reserved for Future Issuance

Common Stock Reserved for Future Issuances—At December 31, the Company has reserved certain stock of its authorized but unissued common stock for possible future issuance in connection with the following:

 

 

2022

 

 

2021

 

 

2020

 

Warrants

 

—

 

 

 

—

 

 

 

116,350

 

Montrose 2013 Stock Incentive Plan

 

855,695

 

 

 

2,047,269

 

 

 

2,047,269

 

Montrose 2017 Stock Incentive Plan(1)

 

7,724,524

 

 

 

6,921,597

 

 

 

2,945,443

 

Total

 

8,580,219

 

 

 

8,968,866

 

 

 

5,109,062

 
Montrose Amended & Restated 2017 Stock Incentive Plan  
Schedule of Restricted Stock Activity

 

 

2022

 

 

Shares

 

Average Price per Share

 

Total
(in thousands)

 

Awards granted

 

106,324

 

$

46.82

 

$

4,978

 

 

 

 

 

 

 

 

 

2021

 

 

Shares

 

Average Price per Share

 

Total
(in thousands)

 

Awards granted

 

1,690,700

 

$

66.45

 

$

112,347

 

 

 

 

 

 

 

 

 

2020

 

 

Shares

 

Average Price per Share

 

Total
(in thousands)

 

Awards granted

 

33,229

 

$

31.60

 

$

1,050

 
Summary of Stock Option Activity The following summarizes the options activity of the 2017 Plan for the years ended December 31, 2022, 2021 and 2020:

 

 

 

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 at January 1, 2020

 

 

617,852

 

 

$

24

 

 

$

12

 

 

 

7.82

 

 

$

4,696

 

Granted

 

 

1,243,027

 

 

 

22

 

 

 

12

 

 

 

—

 

 

 

—

 

Forfeited/cancelled

 

 

(17,225

)

 

 

22

 

 

 

—

 

 

 

—

 

 

 

—

 

Expired

 

 

(2,500

)

 

 

18

 

 

 

—

 

 

 

—

 

 

 

—

 

Exercised

 

 

(925

)

 

 

14

 

 

 

—

 

 

 

—

 

 

 

8

 

Outstanding at December 31, 2020

 

 

1,840,229

 

 

$

23

 

 

$

12

 

 

 

9.09

 

 

$

15,598

 

Granted

 

 

300,620

 

 

 

44

 

 

 

23

 

 

 

—

 

 

 

—

 

Forfeited/cancelled

 

 

(33,875

)

 

 

28

 

 

 

—

 

 

 

—

 

 

 

—

 

Expired

 

 

(1,550

)

 

 

19

 

 

 

—

 

 

 

—

 

 

 

—

 

Exercised

 

 

(68,695

)

 

 

22

 

 

 

—

 

 

 

—

 

 

 

2,169

 

Outstanding at December 31, 2021

 

 

2,036,729

 

 

$

26

 

 

$

14

 

 

 

8.30

 

 

$

91,030

 

Granted

 

 

698,534

 

 

 

44

 

 

 

16

 

 

 

—

 

 

 

—

 

Forfeited/cancelled

 

 

(96,211

)

 

 

32

 

 

 

—

 

 

 

—

 

 

 

—

 

Exercised

 

 

(59,486

)

 

 

23

 

 

 

—

 

 

 

—

 

 

 

1,398

 

Outstanding at December 31, 2022

 

 

2,579,566

 

 

$

31

 

 

$

15

 

 

 

7.76

 

 

$

37,295

 

Exercisable at December 31, 2022

 

 

1,183,574

 

 

 

27

 

 

 

—

 

 

 

7.15

 

 

 

21,181

 
Montrose Amended and Restated 2013 Stock Option Plan  
Summary of Stock Option Activity The following summarizes the activity of the 2013 Plan for the years ended December 31, 2022, 2021 and 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aggregate

 

 

 

 

 

 

Weighted-

 

 

Weighted

 

 

Weighted

 

 

Intrinsic Value

 

 

 

Options to
Purchase

 

 

Average
Exercise

 

 

Average
Grant Date

 

 

Average
Remaining

 

 

of In-The-
Money

 

 

 

Common

 

 

Price per

 

 

Fair Value

 

 

Contract Life

 

 

Options

 

 

 

Stock

 

 

Share

 

 

per Share

 

 

(in Years)

 

 

(in Thousands)

 

Outstanding at January 1, 2020

 

 

1,855,469

 

 

$

6

 

 

$

1

 

 

 

6.40

 

 

$

46,617

 

Forfeited/cancelled

 

 

(7,500

)

 

 

10

 

 

 

—

 

 

 

—

 

 

 

—

 

Expired

 

 

(11,300

)

 

 

6

 

 

 

—

 

 

 

—

 

 

 

—

 

Exercised

 

 

(48,800

)

 

 

8

 

 

 

—

 

 

 

—

 

 

 

908

 

Outstanding at December 31, 2020

 

 

1,787,869

 

 

$

6

 

 

$

1

 

 

 

5.40

 

 

$

43,867

 

Expired

 

 

(625

)

 

 

6

 

 

 

—

 

 

 

—

 

 

 

—

 

Exercised

 

 

(889,570

)

 

 

6

 

 

 

—

 

 

 

—

 

 

 

45,161

 

Outstanding at December 31, 2021

 

 

897,674

 

 

$

6

 

 

$

2

 

 

 

4.37

 

 

$

57,529

 

Expired

 

 

(125

)

 

 

6

 

 

 

—

 

 

 

—

 

 

 

—

 

Exercised

 

 

(41,854

)

 

 

6

 

 

 

—

 

 

 

—

 

 

 

1,626

 

Outstanding at December 31, 2022

 

 

855,695

 

 

$

6

 

 

$

2

 

 

 

3.31

 

 

$

32,478

 

Exercisable at December 31, 2022

 

 

855,695

 

 

 

6

 

 

 

—

 

 

 

3.31

 

 

 

32,478