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

Quarterly report pursuant to Section 13 or 15(d)

Equity Incentive Plan

Equity Incentive Plan

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

The Company grants share-based payment awards to employees, non-employee directors and service providers of the Company under the Augmedix, Inc. 2020 Equity Incentive Plan (“2020 Plan”).

The 2020 Plan authorizes the award of stock options, restricted stock awards ("RSAs"), stock appreciation rights ("SARs"), restricted stock units ("RSUs"), performance awards, cash awards, and stock awards. Certain awards provide for accelerated vesting in the event of a change in control. Options issued may have a contractual life of up to 10 years and may be exercisable in cash or as otherwise determined by the Board of Directors. Vesting generally occurs over a period of not greater than four years.

The number of shares of common stock reserved for issuance under the 2020 Plan increased on January 1, 2021, and will increase each anniversary thereafter through 2030 by the number of shares of common stock equal to the lesser of 5% of the total number of outstanding shares of common stock as of the immediately preceding January 1, or a number as may be determined by the Company’s board of directors. As of March 31, 2024, 1,314,173 shares of common stock remained available for grant under the 2020 Plan.

The Company recorded share-based compensation expense in the following expense categories in the condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,
	2024		2023
General and administrative	$	537	$	357
Sales and marketing	133		59
Research and development	174		91
Cost of revenues	41		26
Total share-based compensation	$	885	$	533

No income tax benefits have been recognized in the condensed consolidated statements of operations and comprehensive loss for stock-based compensation arrangements.

Stock Options and Stock Appreciation Rights

The grant date fair value of stock options and stock appreciation rights was estimated using a Black-Scholes option pricing model with the following weighted average assumptions:


	Three Months Ended March 31,
	2024		2023
Expected term (in years)	6.0		5.9
Expected volatility	57.6	%	57.1	%
Risk-free rate	4.3	%	4.0	%
Dividend rate	—		—

The weighted average grant date fair value of stock option awards and SARs granted granted during the three months ended March 31, 2024 and 2023 was $2.55 and $0.99 , respectively.

The following table summarizes stock option and SARs activity for the three months ended March 31, 2024:


	Number of Shares under Equity Plan	Weighted- Average Exercise Price per Option		Weighted- Average Remaining Contractual Life (in years)
Outstanding at December 31, 2023	9,342,589	$	1.94	7.2
Granted	118,050	$	4.39
Exercised	(67,825)	$	1.26
Forfeited and expired	(53,949)	$	4.34
Outstanding at March 31, 2024	9,338,865	$	1.97	6.9
Exercisable at March 31, 2024	6,349,935	$	1.66	6.4
Vested and expected to vest at March 31, 2024	9,338,865	$	1.97	6.9

The intrinsic value of the options exercised during the three months ended March 31, 2024 was $220 thousand. The aggregate intrinsic value of options outstanding and options exercisable as of March 31, 2024 were $20.1 million and $15.6 million, respectively. At March 31, 2024, future stock-based compensation for options granted and outstanding of $2.9 million will be recognized over a remaining weighted-average requisite service period of 2.2 years.

Restricted Stock Units

The following table summarizes RSU activity for the three months ended March 31, 2024:


	Number of Shares under Equity Plan	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2023	303,688	$	4.91
Granted	1,393,198	$	4.37
Vested	—	$	—
Forfeited and expired	(10,500)	$	4.39
Outstanding at March 31, 2024	1,686,386	$	4.47

The aggregate intrinsic value of RSUs outstanding as of March 31, 2024, was $6.9 million. At March 31, 2024, future stock-based compensation for RSUs granted and outstanding of $6.7 million will be recognized over a remaining weighted-average requisite service period of 3.7 years.

Performance and Market-Based Options

As more fully describe in “Consolidated Financial Statements — Note 10. Equity Incentive Plans” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, in March 2021, the Company granted 727,922 stock options to the Company’s Chief Executive Officer (“CEO”) under the 2020 Plan with an exercise price of $3.00 per share. These options vest based on the CEO’s continued service in addition the Company's stock price reaching the following thresholds for a minimum of 20 out of 30 trading days before the option expiration dates:


Tranche	Number of Option Shares	Stock Price Threshold	Option Expiration
1	317,688	$9.00	March 3, 2031
2	46,273	$9.00	March 21, 2031
3	363,961	$13.50	March 21, 2031
Total	727,922

As of March 31, 2024, there was $18 thousand of unrecognized compensation costs which the Company plans to recognize over a period of 0.4 years. As of March 31, 2024 none of the stock price thresholds had been met.