Quarterly report pursuant to Section 13 or 15(d)

Restricted Stock Units

v3.23.1
Restricted Stock Units
 3 Months Ended
Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Restricted Stock Units Stock Options
On September 18, 2015, the Company adopted the Genius Brands International, Inc. 2015 Incentive Plan (the “2015 Plan”). The total number of shares that can be issued under the 2015 Plan is 216,767 shares.
On September 1, 2020, the Company adopted the Genius Brands International, Inc. 2020 Incentive Plan (the “2020 Plan”). On August 4, 2020, the Board of Directors voted to adopt the 2020 Plan. The shares available for issuance under the 2020 Plan were approved by stockholders on August 27, 2020. The 2020 Plan as approved by the stockholders increased the maximum number of shares available for issuance up to an aggregate of 3,000,000 shares of common stock, which does not include shares that the Company may issue related to acquisitions.
The following table summarizes the stock option activity during the three months ended March 31, 2023:
Number of Shares Weighted- Average Remaining Contractual
Life		 Weighted- Average Exercise Price
Outstanding at December 31, 2022 1,351,421 6.49 $ 15.09 
Granted – – $ – 
Exercised – – $ – 
Forfeited/Cancelled (4,100) 2.78 $ 30.34 
Expired – – $ – 
Outstanding at March 31, 2023 1,347,321 6.26 $ 15.05 
Unvested at March 31, 2023 312,877 5.92 $ 13.23 
Vested and exercisable March 31, 2023 1,034,444 6.36 $ 15.59 
During the three months ended March 31, 2023, upon termination of certain employees, the Company accelerated the vesting of any unvested options held by the employee per the original employment agreement. This resulted in 95,758 options becoming immediately vested on the separation date and $0.1 million in expense recognized by the Company.
During the three months ended March 31, 2023 and 2022, the Company recognized $0.4 million and $0.4 million, respectively, in share-based compensation expense related to stock options. The unrecognized share-based compensation expense as of March 31, 2023 was $0.9 million and will be recognized over a weighted average remaining contractual life of 6.26 years. The outstanding shares as of March 31, 2023 have an aggregated intrinsic value of $0.
Restricted Stock Units
On March 17, 2023, the Company granted 11,070 fully vested RSUs to the Company's board members with a fair market value of $30,000. The RSUs expire five years from date of grant.
An aggregate of 593,358 shares of common stock were issued as a result of vested RSUs.
The following table summarizes the Company’s RSU activity during the three months ended March 31, 2023:
Restricted Stock Units Weighted-
Average Remaining Contractual Life		 Weighted-
Average Grant Date Fair Value per Share
Unvested at December 31, 2022 1,161,944 3.41 $ 13.67 
Granted 11,070 4.96 $ 2.71 
Vested (37,105) 3.49 $ 11.76 
Forfeited/Cancelled – – $ – 
Unvested at March 31, 2023 1,135,909 3.17 $ 13.63 
During the three months ended March 31, 2023, upon termination of certain employees, the Company accelerated the vesting of any unvested shares held by the employee per the original employment agreement. This resulted in 24,243 shares becoming immediately vested and issued on the separation date and $0.1 million in expense recognized by the Company.
During the three months ended March 31, 2023 and 2022, the Company recognized $0.5 million and $4.1 million, respectively, in share-based compensation expense related to RSU awards. The unvested share-based compensation as of March 31, 2023 is $1.2 million which will be recognized through the second quarter of 2025 assuming the underlying grants are not cancelled or forfeited. The total fair value of shares vested during the three months ended March 31, 2023 was $0.4 million.