ShiftPixy, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation

Stock Based Compensation

9 Months Ended

May 31, 2020

Note 7: Stock Based Compensation

The Company granted no options during the nine months ended May 31, 2020. The Company recognized approximately $75,000 and $745,000 of compensation expense for the three and nine months ended May 31, 2020, respectively. During the nine months ended May 31, 2020, the Company fully vested all options granted to personnel who were terminated as a result of the Asset Sale which resulted in the acceleration of 9,737 options and $483,000 of stock-based compensation recorded in stock-based compensation – general and administrative.

At May 31, 2020, the total unrecognized deferred share-based compensation expected to be recognized over the remaining weighted average vesting periods of 0.9 years for outstanding grants was $0.6 million.

A summary of option activity was as follows:


	Options Outstanding and Exercisable
		Weighted
		Average	Weighted
	Number	Remaining	Average
	of	Contractual	Exercise
	Options	Life	Price
		(In years)

Balance, August 31, 2019	50,749	9.0	$	95.20
Granted	-	-		-
Exercised	-	-		-
Forfeited	(7,343)	8.5		69.85
Balance at May 31, 2020	43,406	8.4	$	99.55

Options outstanding as of May 31, 2020 had aggregate intrinsic value of $0.

Option vesting activity was as follows:


		Weighted	Weighted
	Number	Remaining	Average
	of	Contractual	Exercise
Options Vested	Options	Life	Price
		(In years)

Balance, August 31, 2019	10,291	8.0	$	152.80
Vested	17,310	8.4		91.85
Exercised	-	-		-
Forfeited	(1,305)	5.2		140.09
Balance at May 31, 2020	26,296	7.9	$	118.41

The following table summarizes information about stock options outstanding and vested at May 31, 2020:


	Options Outstanding and Exercisable				Options Vested
		Weighted
		Average	Weighted			Weighted	Weighted
	Number	Remaining	Average		Number	Remaining	Average
	of	Contractual	Exercise		of	Contractual	Exercise
Exercise Prices	Options	Life	Price		Options	Life	Price
		(In years)				(In years)

$18.80‑$40.00	5,375	9.0	$	24.35	758	9.0	$	29.38
$40.01–$80.00	13,729	8.8		51.21	7,473	8.8		51.22
$80.01–$120.00	10,553	8.0		102.93	6,881	8.0		102.56
$120.01–$160.00	12,625	7.3		155.28	10,060	7.2		155.26
$160.01‑$391.60	1,124	7.1		391.60	1,124	7.1		391.60
	43,406	8.2	$	99.55	26,296	7.9	$	118.41

The number of options and exercise prices have been presented retroactively for the 1 for 40 December 17, 2019 reverse split.