Quarterly report pursuant to Section 13 or 15(d)

Restricted Stock Units

v3.20.2
Restricted Stock Units
9 Months Ended
Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Restricted Stock Units

14. RESTRICTED STOCK UNITS (RSUs)

On March 24, 2020, the Board’s Compensation Committee approved the grant of 113,506 RSUs to a new manager of the Company. These RSUs have no performance conditions and vest as follows: (i) 25% of the shares vest on February 1, 2021 and (ii) the remaining 75% vests in equal quarterly installments over a three-year period starting from February 1, 2021.

In May 2020, the Board approved the grant of 447,714 RSUs to three new managers and two new advisory board members of Kaleyra. These RSUs have no performance conditions and vest as follows:

435,714 RSUs under this vesting timeline: (i) 25% of the shares vest on May 1, 2021 and (ii) the remaining 75% vests in equal quarterly installments over a three-year period starting from May 1, 2021;

8,000 RSUs vest on August 1, 2020 and 4,000 RSUs on November 1, 2020.

On August 6, 2020, the Board’s Compensation Committee approved the grant of 500,200 RSUs to sixty-nine employees of the Company as part of Kaleyra’s retention plan. These RSUs have no performance conditions and vest as follows: (i) 25% of the shares vest on August 1, 2021 and (ii) the remaining 75% vests in equal quarterly installments over a three-year period starting from August 1, 2021.

The following table sets forth the activity related to the number of outstanding RSUs for the nine months ended September 30, 2020:

 

 

 

Number of

shares

 

 

Weighted-

average

grant date

fair value

(per share)

 

Non-vested as of December 31, 2019

 

 

3,336,095

 

 

$

8.25

 

Vested

 

 

(189,104

)

 

 

8.20

 

Granted

 

 

1,061,420

 

 

 

5.93

 

Cancelled

 

 

(132,897

)

 

 

8.25

 

Non-vested as of September 30, 2020

 

 

4,075,514

 

 

$

7.65

 

 

RSUs compensation expense for the three and nine months ended September 30, 2020 was $4.9 million and $15.8 million, (zero in the three and nine months ended September 30, 2019), respectively, which was recorded as follows (in thousands):

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Research and development

 

$

1,161

 

 

$

 

 

$

3,613

 

 

$

 

Sales and marketing

 

 

1,281

 

 

 

 

 

 

3,434

 

 

 

 

General and administrative

 

 

2,480

 

 

 

 

 

 

8,709

 

 

 

 

Total

 

$

4,922

 

 

$

 

 

$

15,756

 

 

$

 

 

As of September 30, 2020, there was $16.0 million of unrecognized compensation cost related to non-vested RSUs to be recognized over a weighted-average remaining period of 1.28 years.