STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Share-based Payment Arrangement Option Activity

The following table summarizes our time-based stock option activity (dollars in thousands, except weighted average exercise prices):


	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding Options, December 31, 2021	3,410,387	$	4.13	4.7	$	2,496

Exercised	(4,396)	1.56			8
Forfeited	(161,103)	4.69			—
Expired	(243,026)	4.09			—
Outstanding Options, June 30, 2022	3,001,862	$	4.10	3.7	$	—
Exercisable and vested, June 30, 2022	2,982,213	$	4.11	3.7	$	—

Schedule of Assumptions Used in Estimating the Fair Value of Stock Options

The grant date fair value of the PSUs granted on February 18, 2022 derived from the Monte Carlo simulation was based, in part, on the following assumptions:



Fair Value Assumptions:
Grant date stock price															$2.05
Risk-free interest rate															1.67%
Simulation term (in years)															3.0
Expected volatility															63.1%
Dividend yield															0%
Grant date fair value per share															$3.27

Schedule of RSU and PSU Activity

The following table summarizes our RSU and PSU activity during the six months ended June 30, 2022 (dollars in thousands, except weighted average fair values):


	Shares		Weighted Average Fair Value
Outstanding at December 31, 2021	3,824,397		$	6.64
Granted	7,455,850		$	2.25
Released	(144,844)		$	9.18
Forfeited	(1,710,583)		$	6.68
Outstanding at June 30, 2022	9,424,820	(1)	$	3.12

(1) Includes 820,862 shares of Common Stock subject to vested RSUs, the recipients of which elected to defer the settlement of such RSUs under our RSU deferral program for our board members who selected such deferral.

Schedule of Company's Stock-based Compensation Expense by Line Item

The following table summarizes our SBC expense by line item in the condensed consolidated statements of operations and comprehensive (loss) income (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022			2021
Cost of revenues	$	276	$	41	$	496		$	162
Research and development	733		506		1,498			567
Selling, general, and administrative	2,229		5,615		2,107		(1)	9,889
Total	$	3,238	$	6,162	$	4,101	(1)	$	10,618

(1) Amount includes $2.7 million of PSU and RSU forfeitures primarily related to two terminated executive officers.

The following table summarizes our SBC expense by award type for the six months ended June 30, 2022 and 2021 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022			2021
Options	$	37	$	4,340	$	119		$	8,796
Restricted awards (RSUs and PSUs)	3,201		1,823		3,982		(1)	1,823
Total	$	3,238	$	6,162	$	4,101	(1)	$	10,618

(1) Amount includes $2.7 million of PSU and RSU forfeitures primarily related to two terminated executive officers.

As of June 30, 2022, the unrecognized SBC expense and the weighted average period over which this SBC expense is expected to be recognized is summarized as follows (dollar in thousands):


	June 30, 2022		Weighted Average Recognition Period
Options	$	39	0.41
Restricted awards (RSUs and PSUs)	23,154		2.24
Total	$	23,193

Romeo Power, Inc. 10-Q