Stock Based Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock Based Compensation

NOTE 9: STOCK-BASED COMPENSATION

The Company applies the fair value recognition provisions of ASC Topic 718: Stock Compensation. Stock-based compensation expense, net of forfeitures of $308.0 thousand and $21.0 thousand for the three months ended September 30, 2021 and 2020, respectively, and stock-based compensation expense, net of forfeitures of $415.0 thousand and $53.0 thousand for nine months ended September 30, 2021 and 2020, respectively, was recorded in the following line items in the condensed consolidated statements of operations for the three and nine months ended September 30:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Cost of sales - contracts	$	72	$	79	$	256	$	278
Selling, general and administrative	3,713		926		9,100		2,939
Total stock-based compensation expense	$	3,785	$	1,005	$	9,356	$	3,217

At September 30, 2021, the aggregate unrecognized compensation expense related to unvested equity awards was $34.1 million, which is expected to be recognized as compensation expense in fiscal years 2021 through 2024.

In connection with the Punchh Acquisition, the Company issued replacement stock option awards. Those awards are included in the summary of stock option activity for the nine months ended September 30, 2021 is below:

(in thousands, except for exercise price)	Options outstanding	Weighted average exercise price
Outstanding at January 1, 2021	957	$	14.29
Granted	563	7.79
Exercised	(76)	10.92
Canceled/forfeited	(80)	13.02
Outstanding at September 30, 2021	1,364	$	11.87

The fair value of options at the date of the grant was estimated using the Black-Scholes model with the following assumptions for the nine months ended September 30, 2021:

Weighted average expected term	3.1 years
Weighted average risk-free interest rate	0.4		%
Weighted average expected volatility	56.5		%
Expected dividend yield	None
Estimated fair value (per share)	$	60.47

A summary of unvested restricted stock units (“RSU”) activity for the nine months ended September 30, 2021 is below:

(in thousands, except for award value)	Restricted Stock Unit Awards	Weighted average award value
Outstanding at January 1, 2021	427	$	15.46
Granted	197	66.24
Vested	(130)	16.63
Canceled/forfeited	(27)	71.87
Outstanding at September 30, 2021	467	$	33.24