In April 2018, the Company’s Board of Directors adopted and, in June 2018, the Company’s stockholders approved an amendment to the 2016 Plan, to reserve a further 6,800,000 shares of common stock for issuance pursuant to the 2016 Plan. In May 2020, the Company’s stockholders approved an amendment to the 2016 Plan, to reserve a further 12,000,000 shares of common stock for issuance pursuant to the 2016 Plan. Following the approval of the amendments, a total of 24,800,000 shares of common stock were reserved for issuance pursuant to the 2016 Plan. The Company intends to settle all vested restricted stock unit payments held by United States-based participants, except for certain awards to the Chief Operating Officer, in shares of the Company’s common stock and the Company classify these awards as equity awards in its Consolidated Balance Sheets. Awards held by participants who are based outside of the United States, and those awards agreed with participants to be settled in cash, will be settled in cash and are classified within accrued and other current liabilities in the Consolidated Balance Sheets as of December 31, 2021 and 2020. In order to satisfy payroll withholding tax obligations triggered by the issuance of shares of common stock to holders of restricted stock units, the Company issues recipients a net lower number of shares of common stock to satisfy tax withholding obligations and remitted a cash payment for the related withholding taxes. Stock Options Stock-based compensation expense is calculated based on the grant date fair value of the award and the attribution of that cost is being recognized ratably over requisite service periods of 1 to 4 years. Stock options expire ten years from the date of grant. The Company has utilized the Black-Scholes option-pricing model to determine the fair value of stock options based on the closing price of the Company’s common stock on the NASDAQ Composite Index on the date of grant. The following table summarizes the weighted-average assumptions used to value stock options at their grant date and the weighted-average grant-date fair value per share: Year Ended December 31, 2021 2020 Expected volatility 70.37 % 71.94 % Expected term to exercise from grant date 6.0 years 6.2 years Risk-free rate 0.94 % 0.41 % Expected dividend yield — % — % Weighted-average grant-date fair value per share of options $ 1.24 $ 2.39 The following table summarizes the activity related to stock options during the year ended December 31, 2021: Number of Shares WeightedAverage Exercise Price WeightedAverage Remaining Contractual Life Aggregate Intrinsic Value Stock options outstanding - December 31, 2019 5,815,724 $ 0.56 Granted 5,195,000 $ 3.76 Exercised (260,600) $ 0.55 $ 780 Forfeited (725,000) $ 1.03 Stock options outstanding - December 31, 2020 10,025,124 $ 2.19 9.1 years $ 13,372 Granted 7,090,000 $ 2.00 Exercised (504,488) $ 0.55 $ 915 Forfeited (2,135,000) $ 2.80 $ 743 Stock options outstanding - December 31, 2021 14,475,636 $ 2.06 8.8 years $ 1,987 Stock options exercisable - December 31, 2021 4,469,386 $ 1.40 7.9 years $ 1,560 As of December 31, 2021, the number, weighted-average exercise price, weighted-average remaining contractual term, and aggregate intrinsic value of the Company's aggregate stock options that either had vested or are expected to vest approximate the corresponding amounts for stock options outstanding. NantHealth, Inc. Notes to Consolidated Financial Statements (Dollars in thousands, except per share amounts) - 132 -
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