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, 2022

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

The option activity of the Plans for the three months ended March 31, 2022, 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, 2022	13,249	$	1.73	7.23	$	42,775
Granted	—	$
Exercised	(787)	$	1.14
Forfeited/expired	(283)	$	1.68
Outstanding at March 31, 2022	12,179	$	1.77	7.06	$	36,302
Options vested at March 31, 2022	8,001	$	1.91	6.47	$	22,710
Options vested or expected to vest at March 31, 2022	11,652	$	1.78	7.01	$	40,852

RSU activity under the Plan

The activity for stock subject to vesting as of March 31, 2022 is as follows (shares in thousands):


	Shares Subject	Weighted-Average
	to Vesting	Grant Date Fair Value
Balance of unvested shares as of January 1, 2022	264	$ 7.79
Cancelled/Forfeited	(5)	$ 8.78
Vested	(84)	$ 6.90
Balance of unvested shares as of March 31, 2022	175	$ 7.79

Schedule of RSU activity

RSU activity under the 2020 Plan for the three months ended March 31, 2022 is as follows (shares in thousands):


	Shares Subject	Weighted-Average
	to Vesting	Grant Date Fair Value
Balance of unvested shares as of January 1, 2022	16,395	$ 7.54
Granted	5,527	$ 4.20
Vested	(520)	$ 13.41
Cancelled/Forfeited	(392)	$ 11.09
Balance of unvested shares as of March 31, 2022	21,010	$ 6.44

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 consolidated statements of operations as follows (in thousands):


	Three Months Ended March 31,
	2022		2021
Research and development	$	4,720	$	916
General and administrative expense		3,420		839
Sales and marketing expense		1,285		345
Cost of sales		487		117
Total stock-based compensation expenses	$	9,912	$	2,217

Assumed Stock Options

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

Schedule of assumptions using Black-Scholes option-pricing model


		As of November 12, 2021
Risk‑free interest rate		0.5% – 0.8
Expected volatility		57.2% – 59.4	%
Expected life (in years)		1.0 – 2.8
Expected dividend yield		—
Fair value of Common Stock	$	8.61

Market Based Restricted Stock Units

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

Schedule of assumptions using Black-Scholes option-pricing model

The table below sets forth the assumptions used to value the market-based awards and the estimated grant-date fair value:


	October 2021
	Awards
Risk-free interest rate		1.3	%
Expected dividend yield		—	%
Remaining performance period (in years)		7.0
Expected volatility		55.0	%
Estimated grant date fair value (per share)	$	0.98 – 4.95
Target performance (number of shares)		9,070,269