Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.20.4
Stock-Based Compensation
9 Months Ended
Dec. 31, 2020
Stock-Based Compensation  
Stock-Based Compensation

8.     Stock-Based Compensation

Total stock-based compensation expense for the three months ended December 31, 2020 and 2019 was $99,000 and $447,000, respectively.  Total stock-based compensation expense for the nine months ended December 31, 2020 and 2019 was $719,000 and $1.4 million, respectively. 

Bionik granted options to purchase 76,902 and 221,838 shares of common stock to employees during the nine months ended December 31, 2020 and 2019, respectively. Bionik granted options to purchase 341,190 shares of common stock to non-employees during the nine months ended December 31, 2019.  There were no options granted to non-employees during the nine months ended December 31, 2020.  Stock options granted to employees or non-employees typically vest over a 1 to 5 year period.

Performance Based Units (“PSUs”) granted to employees vest annually based on time and continued performance and the achievement of performance goals as determined by the board of directors.

The Company uses the Black-Scholes option pricing model to determine the estimated grant date fair values for stock-based awards. The Black-Scholes option pricing model requires the input of various subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. The Company’s assumptions do not include an estimated forfeiture rate.

The weighted-average grant date fair values of options granted to employees during the nine months ended December 31, 2020 and 2019 were $1.05 and $3.05,  respectively. During the nine months ended December 31, 2019, 96,466 PSUs were granted with a weighted-average grant date fair value of $3.15. All grants awarded during the periods presented used the following assumptions:

 

 

 

 

 

 

 

 

 

Nine Months Ended 

 

 

 

December 31,

 

 

    

2020

    

2019

 

Risk free interest rate

 

0.62

%  

1.59

%

Expected term

 

7 years

 

7 years

 

Dividend yield

 

 —

 

 —

 

Expected volatility

 

114

%  

114

%

Forfeiture rate

 

 0

%  

 0

%

 

Option-pricing models require the input of various subjective assumptions, including the option’s expected life and the price volatility of the underlying stock.  Bionik’s estimated expected stock price volatility is based on past grants that have been made.  Bionik’s expected term of options granted during the nine months ended December 31, 2020 and 2019 was derived from looking at the Company’s exercise history of its awards granted.  The risk-free rate for the expected term of the options is based on the U.S. Treasury yield curve in effect at the time of the grant.

As of December 31, 2020, the total unrecognized compensation cost related to outstanding stock options and PSUs expected to vest was $595,000, which the Company expects to recognize over a weighted-average period of 1.94 years.