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Stockholders' Equity (Deficit) (Tables)
 12 Months Ended
Dec. 31, 2021
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:     

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

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

 

 

 

150,439

 

 

 

26.90

 

 

 

4,047

 

Redemption of series

   A-1 preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,786,739

 

 

 

15.00

 

 

 

26,801

 

 

 

—

 

 

 

—

 

 

 

—

 

Exercise of warrant

   options

 

 

67,713

 

 

 

17.19

 

 

 

—

 

 

 

2,534,239

 

 

 

0.01

 

 

 

25

 

 

 

—

 

 

 

—

 

 

 

—

 

Exercise of options

 

 

959,890

 

 

 

7.54

 

 

 

7,237

 

 

 

47,600

 

 

 

8.05

 

 

 

383

 

 

 

27,350

 

 

 

6.16

 

 

 

168

 

Shares sold

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

42,415

 

 

 

31.60

 

 

 

1,340

 

Restricted shares, net

 

 

42,263

 

 

 

30.69

 

 

 

—

 

 

 

20,488

 

 

 

24.00

 

 

 

—

 

 

 

12,132

 

 

 

18.82

 

 

 

—

 

Payment of earn-out

   liability

 

 

539,607

 

 

 

46.33

 

 

 

25,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Payment of purchase

   price true up

 

 

24,200

 

 

 

44.81

 

 

 

1,084

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Cancellation of shares

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(117,785

)

 

 

17.15

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

   Total

 

 

4,687,394

 

 

$

45.63

 

 

$

211,424

 

 

 

16,562,420

 

 

$

13.64

 

 

$

224,709

 

 

 

232,336

 

 

$

24.89

 

 

$

5,555

 

 
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

 

 

2021

 

 

2020

 

 

2019

 

Shares authorized to be issued

 

3,944,750

 

 

 

2,945,443

 

 

 

997,785

 

Shares available for grant(1)

 

23,153

 

 

 

848,241

 

 

 

137,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013 Plan

 

 

2021

 

 

2020

 

 

2019

 

Shares authorized to be issued

 

2,047,269

 

 

 

2,047,269

 

 

 

2,058,619

 

Shares available for grant

 

—

 

 

 

—

 

 

 

1,550

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 (Note 24). 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:

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

2017 plan

 

 

2013 plan

 

 

 

 

 

 

 

Options

 

 

Restricted Stock

 

 

SARs

 

 

Options

 

 

Total

 

Cost of revenue

 

$

963

 

 

$

—

 

 

$

—

 

 

$

449

 

 

$

1,412

 

Selling, general and administrative expense

 

 

652

 

 

 

433

 

 

 

—

 

 

 

1,848

 

 

 

2,933

 

   Total

 

$

1,615

 

 

$

433

 

 

$

—

 

 

$

2,297

 

 

$

4,345

 
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:

 

 

 

2021

 

 

2020

 

 

2019

 

Common stock value (per share)

 

$44.28

 

 

$21.81

 

 

$26.97

 

Expected volatility

 

55.34%

 

 

46.59%

 

 

48.13%

 

Risk- free interest rate

 

0.82%

 

 

0.65%

 

 

2.06%

 

Expected life (years)

 

5.5-7.0

 

 

7

 

 

 

7

 

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:

 

 

2021

 

 

2020

 

 

2019

 

Warrants

 

—

 

 

 

116,350

 

 

 

650,590

 

Montrose 2013 Stock Incentive Plan

 

2,047,269

 

 

 

2,047,269

 

 

 

2,058,619

 

Montrose 2017 Stock Incentive Plan(1)

 

6,921,597

 

 

 

2,945,443

 

 

 

997,785

 

Common stock reserved for future issuance

 

8,968,866

 

 

 

5,109,062

 

 

 

3,706,994

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

Restricted stock activity was as follows:

 

 

For the Year Ended December 31,

 

 

2021

 

 

2020

 

 

2019

 

 

Shares

 

Average Price per Share

 

Total

(in thousands)

 

 

Shares

 

Average Price per Share

 

Total

(in thousands)

 

 

Shares

 

Average Price per Share

 

Total

(in thousands)

 

Shares granted

 

1,690,700

 

$

66.45

 

 

112,347

 

 

 

33,229

 

$

31.60

 

$

1,050

 

 

 

40,000

 

$

24.00

 

$

960

 
Summary of Stock Option Activity  The following summarizes the options activity of the 2017 Plan for the years ended December 31, 2021, 2020 and 2019:

 

 

 

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 January 1, 2019

 

 

257,762

 

 

$

20

 

 

$

10

 

 

 

—

 

 

$

1,151

 

Granted

 

 

380,820

 

 

 

27

 

 

 

14

 

 

 

—

 

 

 

—

 

Forfeited/cancelled

 

 

(20,730

)

 

 

20

 

 

 

—

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2019

 

 

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

 

Exercisable at December 31, 2021

 

 

349,316

 

 

 

28

 

 

 

—

 

 

 

7.33

 

 

 

15,022

 

Options vested and expected to vest

 

 

2,036,729

 

 

 

26

 

 

 

—

 

 

 

8.30

 

 

 

91,030

 

 
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, 2021, 2020 and 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 January 1, 2019

 

 

1,900,404

 

 

$

6

 

 

$

1

 

 

 

7.30

 

 

$

33,290

 

Forfeited/cancelled

 

 

(10,635

)

 

 

8

 

 

 

—

 

 

 

—

 

 

 

—

 

Expired

 

 

(6,950

)

 

 

8

 

 

 

—

 

 

 

—

 

 

 

—

 

Exercised

 

 

(27,350

)

 

 

6

 

 

 

—

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2019

 

 

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

 

Exercisable at December 31, 2021

 

 

897,674

 

 

 

6

 

 

 

—

 

 

 

4.37

 

 

 

57,529

 

Options vested and expected to vest

 

 

897,674

 

 

 

6

 

 

 

—

 

 

 

4.37

 

 

 

57,529