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Compensation Plans
 6 Months Ended
Jun. 30, 2021
Share-based Payment Arrangement [Abstract]  
Compensation Plans

11. Compensation Plans

 

The Company provides stock-based compensation in the form of (a) stock awards to employees and directors, comprised of restricted stock awards and restricted stock units (collectively referred to as the “Restricted Stock Awards”), (b) stock option grants to employees, directors and consultants (referred to as the “Common Stock Awards”) (c) stock option awards, restricted stock awards, unrestricted stock awards, and stock appreciation rights to employees, directors and consultants (collectively the “Common Equity Awards”), (d) stock option awards outside of the 2016 Stock Incentive Plan and 2019 Equity Incentive Plan to certain officers, directors and employees (referred to as the “Outside Options”), (e) common stock warrants to the Company’s publisher partners (referred to as the “Publisher Partner Warrants”), and (f) common stock warrants to ABG-SI, LLC (referred to as the “ABG Warrants”).

 

 

Stock-based compensation and equity-based expense charged to operations or capitalized during the three months ended June 30, 2021 and 2020 are summarized as follows:

 

   Restricted   Common   Common       Publisher         
   Stock   Stock   Equity   Outside   Partner   ABG     
   Awards   Awards   Awards   Options   Warrants   Warrants   Totals 
During the Three Months Ended June 30, 2021                                   
Cost of revenue  $24,570   $19,202   $1,708,404   $1,455   $-   $-   $1,753,631 
Selling and marketing   -    4,891    1,507,535    74,372    -    -    1,586,798 
General and administrative   141,897    101,939    4,135,866    -    -    396,251    4,775,953 
Total costs charged to operations   166,467    126,032    7,351,805    75,827    -    396,251    8,116,382 
Capitalized platform development   4,125    2,351    540,917    2,164    -    -    549,557 
Total stock-based compensation  $170,592   $128,383   $7,892,722   $77,991   $-   $396,251   $8,665,939 
                                    
During the Three Months Ended June 30, 2020                                   
Cost of revenue  $35,750   $27,970   $1,073,674   $1,967   $27,623   $-   $1,166,984 
Selling and marketing   298,187    23,783    701,925    43,489    -    -    1,067,384 
General and administrative   135,332    138,156    819,916    95,394    -    360,289    1,549,087 
Total costs charged to operations   469,269    189,909    2,595,515    140,850    27,623    360,289    3,783,455 
Capitalized platform development   75,709    80,608    341,642    1,652    -    -    499,611 
Total stock-based compensation  $544,978    270,517   $2,937,157   $142,502   $27,623   $360,289   $4,283,066 

 

 

   Restricted   Common   Common       Publisher         
   Stock   Stock   Equity   Outside   Partner   ABG     
   Awards   Awards   Awards   Options   Warrants   Warrants   Totals 
During the Six Months Ended June 30, 2021                                   
Cost of revenue  $49,030   $146,265   $2,998,778   $3,496   $-   $-   $3,197,569 
Selling and marketing   -    9,929    2,479,048    149,178    -    -    2,638,155 
General and administrative   145,342    219,266    6,262,481    -    -    

 

752,581

    7,379,670 
Total costs charged to operations   194,372    375,460    11,740,307    152,674    -    752,581    13,215,394 
Capitalized platform development   8,948    5,071    840,951    3,782    -    -    858,752 
Total stock-based compensation  $203,320   $380,531   $12,581,258   $156,456   $-   $752,581   $14,074,146 
                                    
During the Six Months Ended June 30, 2020                                   
Cost of revenue  $73,326   $97,766   $2,083,266   $3,173   $35,662   $-   $2,293,193 
Selling and marketing   597,402    59,511    1,380,204    98,867    -    -    2,135,984 
General and administrative   158,252    309,828    1,575,163    150,577    -    720,578    2,914,398 
Total costs charged to operations   828,980    467,105    5,038,633    252,617    35,662    720,578    7,343,575 
Capitalized platform development   145,992    121,765    597,643    4,263    -    -    869,663 
Total stock-based compensation  $974,972    588,870   $5,636,276   $256,880   $35,662   $720,578   $8,213,238 

  

Unrecognized compensation expense and expected weighted-average period to be recognized related to the stock-based compensation awards and equity-based awards as of June 30, 2021 was as follows:

 

   Restricted   Common   Common       Publisher         
   Stock   Stock   Equity   Outside   Partner   ABG     
   Awards   Awards   Awards   Options   Warrants   Warrants   Totals 
Unrecognized compensation expense  $3,178,298   $98,636   $62,311,494   $214,592   $-   $3,076,571   $68,879,591 
Expected weighted-average period expected to be recognized (in years)   1.93    0.19    2.30    0.69    -    1.88    2.25 

 

Pursuant to an amendment with ABG-SI, LLC on June 4, 2021, the exercise price of 10,994,922 ABG Warrants to acquire shares of the Company's common stock was changed to $0.42 per share from $0.84 per share in exchange for additional benefits under the Sports Illustrated licensing agreement.

 

Further details as of the date these condensed consolidated financial statements were issued or were available to be issued are provided under the heading Compensation Plans in Note 14.