GENCO SHIPPING & TRADING LIMITED As ofSeptember 30, 2020 andDecember 31, 2019 , a total of 0 and 8,557,461 of warrants were outstanding, respectively, under theGenco Shipping & Trading Limited 2014 Management Incentive Plan (the "MIP"). The MIP warrants expired onAugust 7, 2020 . The MIP Warrants were issued in three tranches for 238,066, 246,701 and 370,979 shares and had exercise prices, as adjusted for dividends declared during the fourth quarter of 2019 and the first quarter of 2020, of$240.89221 ,$267.11051 and$317.87359 per whole share, respectively. For the three and nine months endedSeptember 30, 2020 and 2019, there was no amortization expense of the fair value of these warrants. As ofSeptember 30, 2020 , there was no unamortized stock-based compensation for the warrants as
all warrants were expired. 2015 Equity Incentive Plan Stock Options
OnFebruary 25, 2020 , the Company issued options to purchase 344,568 of the Company's shares of common stock to certain individuals with an exercise price of$7.06 per share. One third of the options become exercisable on each of the first three anniversaries ofFebruary 25, 2020 , with accelerated vesting that may occur following a change in control of the Company, and all unexercised options expire on the sixth anniversary of the grant date. The fair value of each option was estimated on the date of the grant using the Cox-Ross-Rubinstein pricing formula, resulting in a value of$2.01 per share, or$693 in the aggregate. The assumptions used in the Cox-Ross-Rubinstein option pricing formula are as follows: volatility of 53.91% (representing the Company's historical volatility), a risk-free interest rate of 1.41%, a dividend yield of 7.13%, and expected life of 4 years (determined using the simplified method as outlined in SAB Topic 14 due to lack of historical exercise data). 22 Table of Contents For the three and nine months endedSeptember 30, 2020 and 2019, the Company recognized amortization expense of the fair value of these options, which is included in General and administrative expenses, as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019
General and administrative expenses $ 195 $ 232 $
592 $ 642 Amortization of the unamortized stock-based compensation balance of$684 as ofSeptember 30, 2020 is expected to be expensed$194 ,$367 ,$111 and$12 during the remainder of 2020 and during the years endedDecember 31, 2021 , 2022 and 2023, respectively. The following table summarizes the unvested option activity for the nine months endedSeptember 30, 2020 : Weighted Weighted Number Average Average of Exercise Fair Options Price Value
Outstanding at
4.72 Granted 344,568 7.06 2.01 Exercisable (119,923) 9.87 5.05 Exercised - - - Forfeited (3,378) 8.07 3.76
Outstanding at
The following table summarizes certain information about the options outstanding as ofSeptember 30, 2020 : Options Outstanding and Unvested,
Options Outstanding and Exercisable,
September 30, 2020 September 30, 2020
Weighted Weighted Weighted
Average Weighted Average Weighted Average
Exercise Price of Average Remaining Average Remaining
Outstanding Number of Exercise Contractual Number of Exercise Contractual
Options Options Price Life Options Price Life $ 8.86 543,546$ 7.83 4.97 293,792$ 10.78 3.26
As of
Restricted Stock Units
The Company has issued restricted stock units ("RSUs") under the 2015 Plan to
certain members of the Board of Directors and certain executives and employees
of the Company, which represent the right to receive a share of common stock, or
in the sole discretion of the Company's Compensation Committee, the value of a
share of common stock on the date that the RSU vests. As of September 30, 2020
and December 31, 2019 , 373,588 and 326,247 shares of the Company's common stock
were outstanding in respect of the RSUs, respectively. Such shares of common
stock will only be issued in respect of vested RSUs issued to directors when the
director's service with the Company as a director terminates. Such shares of
common stock will only be issued to executives and employees when their RSUs
vest under the terms of their grant agreements and the amended 2015 Plan
described above.
23
Table of Contents
The RSUs that have been issued to certain members of the Board of Directors generally vest on the date of the annual shareholders meeting of the Company following the date of the grant. In lieu of cash dividends issued for vested and nonvested shares held by certain members of the Board of Directors, the Company will grant additional vested and nonvested RSUs, respectively, which are calculated by dividing the amount of the dividend by the closing price per share of the Company's common stock on the dividend payment date and will have the same terms as other RSUs issued to members of the Board of Directors. The RSUs that have been issued to other individuals vest ratably on each of the three anniversaries of the determined vesting date. The table below summarizes the Company's unvested RSUs for the nine months endedSeptember 30, 2020 : Weighted Number of Average Grant RSUs Date Price
Outstanding at
221,466 6.80
Vested (83,356) 9.08
Forfeited (1,490) 8.39
Outstanding at
The total fair value of the RSUs that vested during the nine months ended
The following table summarizes certain information of the RSUs unvested and
vested as of
Unvested RSUs Vested RSUs
September 30, 2020 September 30, 2020
Weighted
Weighted Average Weighted
Average Remaining Average
Number of Grant Date Contractual Number of Grant Date
RSUs Price Life RSUs Price
298,716 $ 7.49 1.84 505,578 $ 11.08 The Company is amortizing these grants over the applicable vesting periods, net of anticipated forfeitures. As ofSeptember 30, 2020 , unrecognized compensation cost of$1,191 related to RSUs will be recognized over a weighted-average period of 1.84 years. For the three and nine months endedSeptember 30, 2020 and 2019, the Company recognized nonvested stock amortization expense for the RSUs, which is included in General and administrative expenses as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019
General and administrative expenses $ 339 $ 343 $
899
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