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

Quarterly report pursuant to Section 13 or 15(d)

STOCK BASED COMPENSATION (Tables)

STOCK BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2021

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of stock-based compensation expense

Total stock-based compensation expense related to all of the Company’s stock-based awards granted is reported in the condensed consolidated statements of operations as follows (in thousands):


	Three Months Ended March 31,
	2021		2020
Research and development	$	916	$	713
General and administrative expense		839		237
Sales and marketing expense		345		209
Cost of sales		117		100
Total stock-based compensation expenses	$	2,217	$	1,259

Schedule of option activity

There were 14,140,956 shares available for award under the 2020 Plan at March 31, 2021. The option activity of the Plans for the three months ended March 31, 2021, is as follows (shares in thousands):


				Weighted-Average
		Weighted-Average		Remaining	Aggregate
	Number of	Exercise Price		Contractual Term	Intrinsic Value
	Shares	per Share		(in years)	(in thousands)
Outstanding at January 1, 2021	19,553	$	1.53	7.75	$	306,408
Granted	—	$	—
Exercised	(163)	$	1.10
Forfeited/expired	(12)	$	1.40
Outstanding at March 31, 2021	19,378	$	1.53	7.51	$	259,023
Options vested at March 31, 2021	11,044	$	1.55	6.29	$	147,481
Options vested or expected to vest at March 31, 2021	18,673	$	1.54	7.45	$	249,529

Schedule of RSU activity


	Shares Subject	Weighted-Average
	to Vesting	Grant Date Fair Value
Balance of unvested shares as of January 1, 2021	683	$ 8.02
Granted	250	$ 30.49
Vested	(15)	$ 8.19
Balance of unvested shares as of March 31, 2021	918	$ 14.14

Consultant

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of assumptions using Black-Scholes option-pricing model


	Three Months Ended
	March 31, 2020
Risk‑free interest rate		0.8	%
Expected volatility		54.3	%
Expected life (in years)		10.0
Expected dividend yield		—
Fair value of Common Stock	$	3.34

Employee

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of assumptions using Black-Scholes option-pricing model


	Three Months Ended
	March 31, 2020
Risk‑free interest rate		0.7 % – 0.9	%
Expected volatility		52.7 % – 52.9	%
Expected life (in years)		5.9 – 6.1
Expected dividend yield		—
Fair value of Common Stock	$	3.34