Stock Based Compensation

12 Months Ended

Dec. 31, 2020

Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]

2019 Equity Incentive Plan

On December 19, 2019, the Oblong, Inc. 2019 Equity Incentive Plan (the “2019 Plan”) was approved by the Company’s stockholders at the Company’s 2019 Annual Meeting of Stockholders. The 2019 Plan is an omnibus equity incentive plan pursuant to which the Company may grant equity and cash incentive awards to certain key service providers of the Company and its subsidiaries. The 2019 Plan replaces the Glowpoint, Inc. 2014 Equity Incentive Plan (the “Prior Plan”), which was adopted by the Company’s Board of Directors on April 22, 2014, and subsequently approved by the Company’s stockholders. Following approval of the 2019 Plan, the Company terminated the Prior Plan and may no longer make grants under the Prior Plan; however, any outstanding equity awards granted under the Prior Plan will continue to be governed by the terms of the Prior Plan. The maximum number of shares of the Company’s Common Stock initially reserved and available for issuance under the 2019 Plan was equal to the sum of (i) 2,600,000 shares the Company’s Common Stock and (ii) 421,000 shares of the Company’s Common Stock remaining available for issuance under the Prior Plan at the time of its termination. As of December 31, 2020, 28,904 restricted stock units were outstanding under the Prior Plan. As of December 31, 2020, the share pool available for new grants under the 2019 Plan is 3,013,500.

During the year ended December 31, 2020, the Company issued 7,500 shares from the 2019 Plan to a former Board member and recorded stock-based compensation expense of $35,000 in general and administrative expenses (based on the stock price on the date of issuance). No equity awards were granted under the 2019 Plan during the year ended December 31, 2019.

2007 Stock Incentive Plan

In May 2014, the Board terminated the Company’s 2007 Stock Incentive Plan (the “2007 Plan”). Notwithstanding the termination of the 2007 Plan, outstanding awards under the 2007 Plan will remain in effect accordance with their terms. As of December 31, 2020, options to purchase a total of 107,500 shares of common stock and 627 shares of restricted stock were outstanding under the 2007 Plan. No shares are available for issuance under the 2007 Plan.

Stock Options

For the years ended December 31, 2020 and 2019, other than the options granted to certain former holders of options to purchase shares of Oblong’s common stock, for which no stock-based compensation was recorded as discussed below, no stock options were granted. A summary of stock options expired and forfeited under our plans and options outstanding as of, and changes made during, the years ended December 31, 2020 and 2019 is presented below:


	Outstanding			Exercisable
	Number of Options	Weighted Average Exercise Price		Number of Options	Weighted Average Exercise Price
Options outstanding, December 31, 2018	118,003	$	19.90	118,003	$	19.90
Exchanged for Oblong Industries stock options	107,845	4.92

Expired	(440)	16.48
Forfeited	(10,063)	23.20
Options outstanding and exercisable, December 31, 2019	215,345	12.27		215,345	12.27


Expired	(107,845)	4.92

Options outstanding and exercisable, December 31, 2020	107,500	$	19.64	107,500	$	19.64

Additional information as of December 31, 2020 is as follows:


	Outstanding and Exercisable
Range of price	Number of Options	Weighted Average Remaining Contractual Life (In Years)	Weighted Average Exercise Price
$0.00 – $10.00	2,500	2.45	$	9.00
$10.01 – $20.00	97,500	2.06	19.32
$20.01 – $30.00	2,500	1.43	21.80
$30.01 – $40.00	5,000	1.19	30.20

	107,500	2.01	$	19.64

In connection with the Acquisition, all options to purchase shares of Oblong’s common stock held by previously terminated employees of Oblong Industries were assumed by the Company and deemed, in the aggregate, to constitute options to acquire a total of 107,845 shares of the Company’s common stock, at a volume weighted average exercise price of $4.92 per share and a remaining exercise period of one year. No stock-based compensation expense was recorded in the years ended December 31, 2020 and 2019 for these stock options, as the value for these options was recorded as part of the consideration of the Acquisition given that these options were issued to terminated employees. As of December 31, 2020, all 107,845 options had expired.

The intrinsic value of vested options, unvested options and exercised options were not significant for all periods presented. There was no remaining unrecognized stock-based compensation expense for options at December 31, 2020 as all options were vested.

Restricted Stock Awards

A summary of restricted stock granted, vested and unvested outstanding as of, and changes made during, the years ended December 31, 2020 and 2019, is presented below:


	Restricted Shares	Weighted Average Grant Price
Unvested restricted stock outstanding, December 31, 2018	11,320	$	14.88

Vested	(1,372)	15.72
Forfeited	(9,321)	14.70
Unvested restricted stock outstanding, December 31, 2019	627	15.80



Unvested restricted stock outstanding, December 31, 2020	627	$	15.80

Stock-based compensation expense relating to restricted stock awards is allocated as follows (in thousands):


	Year Ended December 31,
	2020		2019



General and administrative	—		3
	$	—	$	3

The stock compensation for the unvested restricted stock awards was amortized over an average service life of five years, but the vesting term was the lesser of i) ten years from the date of issuance (May 28, 2024) or ii) the departure date of the director. The unvested restricted stock awards have been fully expensed and there is no unrecognized stock-based compensation expense for restricted stock awards at December 31, 2020.

Restricted Stock Units

A summary of restricted stock units (“RSUs”) granted, vested, forfeited and unvested outstanding as of, and changes made during, the years ended December 31, 2020 and 2019, is presented below:


	Restricted Stock Units	Weighted Average Grant Price
Unvested RSUs outstanding, December 31, 2018	503,518	$	1.94
Granted	55,479	1.30
Vested	(114,505)	3.05
Forfeited	(421,158)	1.54
Unvested RSUs outstanding, December 31, 2019	23,334	2.20

Vested	(23,334)	2.20

Unvested RSUs outstanding, December 31, 2020	—	$	—

As of December 31, 2020 and 2019, 28,904 vested RSUs remain outstanding, as shares of common stock have not yet been delivered for these units in accordance with the terms of the RSUs.

The number of RSUs vested during the year ended December 31, 2020 includes 7,998 shares of common stock withheld and repurchased by the Company on behalf of employees to satisfy $16,000 of tax obligations relating to the vesting of such shares.

Stock-based compensation expense relating to restricted stock units is allocated as follows (in thousands):


	Year Ended December 31,
	2020		2019
Cost of revenue	$	—	$	10
Research and development	—		12

General and administrative	6		52
	$	6	$	74

There was no remaining unrecognized stock-based compensation expense for restricted stock units at December 31, 2020.

There was no tax benefit recognized for stock-based compensation expense for the years ended December 31, 2020 and 2019. No compensation costs were capitalized as part of the cost of an asset during the periods presented.

Restricted Series D Preferred Stock

In connection with the Acquisition, all options to purchase shares of Oblong Industries’ common stock held by existing employees of Oblong Industries were canceled and exchanged for an aggregate of 49,967 restricted shares of Series D Preferred Stock (“Restricted Series D Preferred Stock”), which are subject to vesting over a two-year period following the Closing Date.

Stock-based compensation expense relating to Restricted Series D Preferred Stock is allocated as follows (in thousands):


	Year Ended December 31,
	2020		2019
Research and development	$	47	$	17
Sales, general and administrative	$	111	$	16
	$	158	$	33

During the years ended December 31, 2020 and 2019, 29,694 and 1,725 shares of Restricted Series D Preferred Stock were forfeited, respectively and 18,548 shares were outstanding as of December 31, 2020. The remaining unrecognized stock-based compensation expense for Restricted Series D Preferred Stock at December 31, 2020 was $38,000, which was expensed in February 2021 upon the conversion of the shares into common. Refer to Note 20 - Subsequent Events, for further discussion of the conversion.