Redwire Corporation General form of registration statement for all companies including face-amount certificate companies

General form of registration statement for all companies including face-amount certificate companies

Equity-Based Compensation (Tables)

Equity-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

The assumptions used in determining the fair value of the in-substance ISOs represented by the Predecessor Promissory Notes for the Predecessor 2020 Period were as follows:


	Predecessor
	Period from January 1, 2020 to June 21, 2020
Range of expected time to exit (years)	3		to	5
Range of volatilities	55.00	%	to	63.09	%
Range of Predecessor Promissory Notes interest rates	1.85	%	to	1.91	%
Range of risk-free interest rates	1.33	%	to	1.62	%

The fair value of each option granted under the Predecessor 2011 Equity Incentive Plan and the Successor Plan was estimated on the grant date under the Black-Scholes OPM using the following assumptions:


	Successor		Predecessor
Expected option term (years)	6		3-5
Expected volatility	32.80	%	55.00%-63.09	%
Risk-free rate of return	0.93%-1.15	%	1.33%-2.51	%
Expected annual dividend yield	—	%	—	%

Summary of Option Activity

A summary of the activity of the Predecessor Promissory Notes is as follows:


	In-substance ISO’s
	represented by the
	Predecessor Promissory		Weighted-average
	Notes			exercise price
Predecessor Outstanding as of December 31, 2019		1,028,784	$	0.99
Settled or cancelled		(1,028,784)		0.99
Outstanding as of December 31, 2020	$	—	$	—

A summary of option activity under the Predecessor 2011 Equity Incentive Plan and the Successor Plan as of December 31, 2021 and December 31, 2020, and changes during the years then ended is presented as follows:


		Weighted-Average		Weighted-Average		Weighted-Average
		Grant Date Fair		Exercise Price per		Remaining Contractual
Options	Shares	Value per Share		Share		Term (Years)
Predecessor Outstanding at December 31, 2019	133,661	$	0.66	$	1.47
Forfeited	(2,900)		0.77		1.80
Settled or cancelled	(130,761)		0.66		1.46
Successor Outstanding at December 31, 2020	—		—		—
Granted	1,546,400		3.32		10.00
Exercised	—		—		—
Forfeited	—		—		—
Successor Outstanding at December 31, 2021	1,546,400	$	3.32	$	10.00	9.67

Schedule of Nonvested Restricted Stock Units Activity

A summary of the status of the Company’s restricted stock as of December 31, 2021, and changes during the Successor 2021 Period, is presented as follows:


		Weighted-Average		Weighted-Average	Aggregate
		Grant Date Fair		Remaining Contractual	Intrinsic
	Restricted Shares	Value per Share		Term (in Years)	Value
Unvested at December 31, 2020	—	$	—
Granted	1,734,600		11.67
Vested	—		—
Forfeited	(16,650)		12.72
Unvested at December 31, 2021	1,717,950	$	11.66	1.8	$	11,596

Summary of Stock Compensation Expense

The table below presents the equity-based compensation expense recorded during the following periods:


	Successor				Predecessor
			Period from		Period from
	Year Ended		February 10, 2020 to		January 1, 2020 to
	December 31, 2021		December 31, 2020		June 21, 2020
Cost of Sales
Incentive Units	$	1,635	$	—	$	—
Stock Options		15		—		—
Restricted Stock Units		466		—		—
Total cost of sales	$	2,116	$	—	$	—

Selling, general and administrative
Promissory Notes	$	—	$	—	$	988
Incentive Units		23,260		—		—
Stock Options		542		102		7
Restricted Stock units		1,194		—		—
Total selling, general and administrative	$	24,996	$	102	$	995

Total equity-based compensation expense	$	27,112	$	102	$	995