zixi-10q_20190331.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 0-17995

 

ZIX CORPORATION

(Exact Name of Registrant as Specified in its Charter)

 

 

Texas

 

75-2216818

(State of Incorporation)

 

(I.R.S. Employer Identification Number)

 

2711 North Haskell Avenue

Suite 2200, LB 36

Dallas, Texas 75204-2960

(Address of Principal Executive Offices)

(214) 370-2000

(Registrant’s Telephone Number, Including Area Code)

 

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit  such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

 

 

 

Non-accelerated filer

 

  

 

Smaller reporting company

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicated by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act            

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

 

Class

 

Outstanding at May 7, 2019

Common Stock, par value $0.01 per share

 

55,547,299

Securities registered pursuant to Section 12(b) of the Exchange Act:

 

Title of Each Class

 

Trading Symbols(s)

 

Name of Exchange on Which Registered

Common Stock, par value $0.01 per share

 

ZIXI

 

NASDAQ Global Market

 


 


 

INDEX

 

 

 

 

 

Page

Number

PART I — FINANCIAL INFORMATION

 

 

Item 1.

 

Financial Statements (Unaudited)

 

 

 

 

Condensed Consolidated Balance Sheets at March 31, 2019 (unaudited) and December 31, 2018

 

3

 

 

Condensed Consolidated Statements of Comprehensive Loss (unaudited) for the three months ended March 31, 2019  and 2018

 

4

 

 

Condensed Consolidated Statement of Stockholders’ Equity (unaudited) for the three months ended March 31, 2019 and 2018

 

5

 

 

Condensed Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2019 and 2018

 

7

 

 

Notes to Condensed Consolidated Financial Statements

 

8

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

21

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

28

Item 4.

 

Controls and Procedures

 

28

PART II — OTHER INFORMATION

 

 

Item 1.

 

Legal Proceedings

 

29

Item 1A.

 

Risk Factors

 

29

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

29

Item 3.

 

Defaults Upon Senior Securities

 

29

Item 4.

 

Mine Safety Disclosures

 

29

Item 5.

 

Other Information

 

29

Item 6.

 

Exhibits

 

30

 

2


 

ZIX CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(In thousands, except share and par value data)

 

March 31,

2019

 

 

December 31,

2018

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

16,691

 

 

$

27,109

 

Receivables, net

 

 

9,779

 

 

 

3,188

 

Prepaid and other current assets

 

 

5,253

 

 

 

3,176

 

Total current assets

 

 

31,723

 

 

 

33,473

 

Property and equipment, net

 

 

7,000

 

 

 

3,924

 

Operating lease assets

 

 

8,932

 

 

 

 

Intangible assets, net

 

 

152,012

 

 

 

15,251

 

Goodwill

 

 

161,003

 

 

 

13,783

 

Deferred tax assets

 

 

29,888

 

 

 

28,785

 

Deferred costs and other assets

 

 

10,174

 

 

 

9,424

 

Total assets

 

$

400,732

 

 

$

104,640

 

LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

14,118

 

 

$

769

 

Accrued expenses

 

 

14,477

 

 

 

9,747

 

Deferred revenue

 

 

40,966

 

 

 

30,622

 

Current portion of long-term debt

 

 

1,765

 

 

 

 

Other current liabilities

 

 

1,203

 

 

 

 

Total current liabilities

 

 

72,529

 

 

 

41,138

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Deferred revenue

 

 

1,304

 

 

 

1,539

 

Deferred rent

 

 

 

 

 

1,016

 

Noncurrent operating lease liabilities

 

 

8,880

 

 

 

 

Long-term debt

 

 

166,901

 

 

 

 

Total long-term liabilities

 

 

177,085

 

 

 

2,555

 

Total liabilities

 

 

249,614

 

 

 

43,693

 

Commitments and contingencies (see Note 11)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock:

 

 

 

 

 

 

 

 

Series A convertible preferred stock, $1 par value; 64,914 shares designated, issued and

   outstanding in 2019 and no designated, issued or outstanding in 2018

 

 

64,644

 

 

 

 

Series B convertible preferred stock, $1 par value; 35,086 shares designated, issued and

   outstanding in 2019 and no designated, issued or outstanding in 2018

 

 

34,332

 

 

 

 

Total preferred stock

 

 

98,976

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, $1 par value, 10,000,000 shares authorized; none issued and outstanding

 

 

 

 

 

 

Common stock, $0.01 par value, 175,000,000 shares authorized; 83,288,103

   issued and 55,596,180 outstanding in 2019 and 81,715,330 issued and 54,186,180

   outstanding in 2018

 

 

779

 

 

 

779

 

Additional paid-in capital

 

 

386,205

 

 

 

384,940

 

Treasury stock, at cost; 27,691,923 common shares in 2019 and 27,529,150

   common shares in 2018

 

 

(109,732

)

 

 

(108,392

)

Accumulated deficit

 

 

(225,062

)

 

 

(216,364

)

Accumulated other comprehensive loss

 

 

(48

)

 

 

(16

)

Total stockholders’ equity

 

 

52,142

 

 

 

60,947

 

Total liabilities, preferred stock and stockholders’ equity

 

$

400,732

 

 

$

104,640

 

 

See notes to condensed consolidated financial statements.

3


 

ZIX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

(In thousands, except share and per share data)

 

2019

 

 

2018

 

Revenue

 

$

29,300

 

 

$

16,654

 

Cost of revenue

 

 

11,139

 

 

 

3,514

 

Gross margin

 

 

18,161

 

 

 

13,140

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

 

4,147

 

 

 

2,977

 

Selling, general and administrative

 

 

20,264

 

 

 

7,554

 

Total operating expenses

 

 

24,411

 

 

 

10,531

 

Operating (loss) income

 

 

(6,250

)

 

 

2,609

 

Other income (expense):

 

 

 

 

 

 

 

 

Investment and other income

 

 

92

 

 

 

119

 

Interest expense

 

 

(1,255

)

 

 

 

Total other (expense) income

 

 

(1,163

)

 

 

119

 

Income (loss) before income taxes

 

 

(7,413

)

 

 

2,728

 

Income tax benefit (expense)

 

 

1,148

 

 

 

(836

)

Net income (loss)

 

$

(6,265

)

 

$

1,892

 

 

 

 

 

 

 

 

 

 

Deemed and accrued dividends on preferred stock

 

 

2,433

 

 

 

 

Net income (loss) attributable to common stockholders

 

$

(8,698

)

 

$

1,892

 

 

 

 

 

 

 

 

 

 

Basic income (loss) per share attributable to common stockholders

 

$

(0.17

)

 

$

0.04

 

Diluted income (loss) per common share attributable to common stockholders

 

$

(0.17

)

 

$

0.04

 

Basic weighted average common shares outstanding

 

 

52,713,576

 

 

 

52,875,428

 

Diluted weighted average common shares outstanding

 

 

52,713,576

 

 

 

53,481,104

 

 

 

 

 

 

 

 

 

 

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(32

)

 

 

 

Comprehensive income (loss)

 

$

(6,297

)

 

$

1,892

 

 

See notes to condensed consolidated financial statements

4


 

ZIX CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

(Unaudited)

 

 

 

Preferred Stock and Stockholders’ Equity

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Additional

 

 

 

 

 

 

 

 

Accumulated

Other

 

 

Total

 

(In thousands, except shares)

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Paid-In

Capital

 

 

Treasury

Stock

 

 

Accumulated

Deficit

 

 

Comprehensive

Income (Loss)

 

 

Stockholders’

Equity

 

Balances, December 31, 2018, as reported

 

 

 

 

$

 

 

 

81,715,330

 

 

$

779

 

 

$

384,940

 

 

$

(108,392

)

 

$

(216,364

)

 

$

(16

)

 

$

60,947

 

Issuance of Series A preferred stock in connection with private placement, net of issuance costs of $2,253

 

 

64,914

 

 

 

62,662

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of Series B preferred stock in connection with private placement, net of issuance costs of $1,204

 

 

35,086

 

 

 

33,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beneficial conversion feature of Series A preferred stock

 

 

 

 

 

1,407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,407

)

 

 

 

 

 

(1,407

)

Accretion of beneficial conversion feature of Series A Preferred Shares (Participating)

 

 

 

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12

)

 

 

 

 

 

(12

)

Accrued dividend on Series A preferred stock

 

 

 

 

 

563

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(563

)

 

 

 

 

 

(563

)

Accrued dividend on Series B preferred stock

 

 

 

 

 

380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(380

)

 

 

 

 

 

(380

)

Redemption Accretion of Series B preferred stock

 

 

 

 

 

71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(71

)

 

 

 

 

 

(71

)

Net issuance of common stock upon exercise of stock options

 

 

 

 

 

 

 

 

17,438

 

 

 

 

 

 

36

 

 

 

 

 

 

 

 

 

 

 

 

36

 

Net issuance of common stock upon vesting of restricted stock units

 

 

 

 

 

 

 

 

40,334

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net issuance of common stock upon vesting of performance stock units

 

 

 

 

 

 

 

 

392,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net issuance of restricted common stock

 

 

 

 

 

 

 

 

1,116,724

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net issuance of restricted performance common stock

 

 

 

 

 

 

 

 

5,777

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee stock-based compensation costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,229

 

 

 

(1,340

)

 

 

 

 

 

 

 

 

(111

)

Treasury repurchase program

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustment from foreign currency translation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(32

)

 

 

(32

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,265

)

 

 

 

 

 

(6,265

)

Balances, March 31, 2019

 

 

100,000

 

 

$

98,976

 

 

 

83,288,103

 

 

$

779

 

 

$

386,205

 

 

$

(109,732

)

 

$

(225,062

)

 

$

(48

)

 

$

52,142

 

 

See notes to condensed consolidated financial statements.

5


 

ZIX CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

(Unaudited)

Continued

 

 

Preferred Stock and Stockholders’ Equity

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Additional

 

 

 

 

 

 

 

 

 

 

Accumulated

Other

 

 

Total

 

(In thousands, except shares)

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Paid-In

Capital

 

 

Treasury

Stock

 

 

Accumulated

Deficit

 

 

Comprehensive

Income (Loss)

 

 

Stockholders’

Equity

 

Balances, December 31, 2017, as reported

 

 

 

 

$

 

 

 

80,709,970

 

 

$

778

 

 

$

381,457

 

 

$

(102,343

)

 

$

(236,372

)

 

$

 

 

$

43,520

 

Cumulative effect adjustment from changes in accounting standards, net of taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,564

 

 

 

 

 

 

4,564

 

Balances, January 01, 2018, as adjusted

 

 

 

 

 

 

 

 

80,709,970

 

 

 

778

 

 

 

381,457

 

 

 

(102,343

)

 

 

(231,808

)

 

 

 

 

 

48,084

 

Net issuance of common stock upon vesting of restricted stock units

 

 

 

 

 

 

 

 

50,751

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net issuance of common stock upon vesting of performance stock units

 

 

 

 

 

 

 

 

32,655

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net issuance of restricted common stock

 

 

 

 

 

 

 

 

370,322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net issuance of restricted performance common stock

 

 

 

 

 

 

 

 

95,946

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee stock-based compensation costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

627

 

 

 

(547

)

 

 

 

 

 

 

 

 

80

 

Treasury repurchase program

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,090

)

 

 

 

 

 

 

 

 

(3,090

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,892

 

 

 

 

 

 

1,892

 

Balances, March 31, 2018

 

 

 

 

$

 

 

 

81,259,644

 

 

$

778

 

 

$

382,084

 

 

$

(105,980

)

 

$

(229,916

)

 

$

 

 

$

46,966

 

 

See notes to condensed consolidated financial statements.

6


 

ZIX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Three Months Ended March 31,

 

(In thousands)

 

2019

 

 

2018

 

Operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(6,265

)

 

$

1,892

 

Non-cash items in net income (loss):

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

2,696

 

 

 

746

 

Amortization of debt issuance costs

 

 

116

 

 

 

 

Employee stock-based compensation costs

 

 

1,229

 

 

 

627

 

Changes in deferred taxes

 

 

(1,103

)

 

 

912

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Receivables

 

 

(113

)

 

 

275

 

Prepaid and other current assets

 

 

(1,004

)

 

 

554

 

Deferred costs and other assets

 

 

(856

)

 

 

(914

)

Operating lease assets

 

 

(4,385

)

 

 

 

Accounts payable

 

 

5,989

 

 

 

(295

)

Deferred revenue

 

 

(212

)

 

 

(1,586

)

Earn-out payment

 

 

(385

)

 

 

(195

)

Accrued and other liabilities

 

 

3,876

 

 

 

(968

)

Net cash provided by (used in) operating activities

 

 

(417

)

 

 

1,048

 

Investing activities:

 

 

 

 

 

 

 

 

Purchases of property, equipment and internal-use software

 

 

(1,742

)

 

 

(546

)

Acquisition of business, net of cash acquired

 

 

(271,706

)

 

 

 

Net cash used in investing activities

 

 

(273,448

)

 

 

(546

)

Financing activities:

 

 

 

 

 

 

 

 

Proceeds of term loan

 

 

175,000

 

 

 

 

Debt issuance cost

 

 

(6,389

)

 

 

 

Proceeds from issuance of Series A preferred stock, net of offering costs

 

 

62,692

 

 

 

 

Proceeds from issuance of Series B preferred stock, net of offering costs

 

 

33,896

 

 

 

 

Proceeds from exercise of stock options

 

 

36

 

 

 

 

Purchase of treasury shares

 

 

(1,340

)

 

 

(3,637

)

Earn-out payment

 

 

(415

)

 

 

(605

)

Net cash provided by (used in) financing activities

 

 

263,480

 

 

 

(4,242

)

 

 

 

 

 

 

 

 

 

Effect of exchange rate on cash

 

 

(33

)

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in cash and cash equivalents

 

 

(10,418

)

 

 

(3,740

)

Cash and cash equivalents, beginning of period

 

 

27,109

 

 

 

33,009

 

Cash and cash equivalents, end of period

 

$

16,691

 

 

$

29,269

 

 

See notes to condensed consolidated financial statements.

7


 

ZIX CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

 

1. Basis of Presentation

The accompanying condensed consolidated financial statements of Zix Corporation (“Zix” the “Company,” “we,” “our” or “us”) should be read in conjunction with the audited consolidated financial statements included in the Company’s 2018 Annual Report on Form 10-K. These financial statements are unaudited, but have been prepared in the ordinary course of business for the purpose of providing information with respect to the covered interim periods.

Management of the Company believes that all adjustments necessary for a fair presentation for such periods have been included and are of a normal recurring nature. The results of operations for the three month period ended March 31, 2019, are not necessarily indicative of the results to be expected for any future periods or for the full fiscal year.

 

 

2. Recent Accounting Standards and Pronouncements

Leases

In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842). Topic 842 requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. We elected the available practical expedients and adopted ASC 842 effective January 1, 2019, prospectively. The adoption of this standard resulted in the recognition of right-to-use assets and lease liabilities of $4.8 million and $6.0 million, with no material impact on the results of operations and cash flows. See below Note 6 “Leases" for additional information regarding our leases.

 

 

3. Stock- Based Awards and Stock-Based Employee Compensation Expense

Our stock-based awards include (i) stock options, (ii) restricted stock awards, some of which are subject to time-based vesting (“Restricted Stock”) and some of which are subject to performance-based vesting (“Performance Stock”), and (iii) restricted stock units, some of which are subject to time-based vesting (“RSUs”) and some of which are subject to performance-based vesting (“Performance RSUs”). As of March 31, 2019 the Company had 906,385 stock options outstanding, 2,090,603 non-vested Restricted Stock awards; 526,568 non-vested Performance Stock awards; 61,834 non-vested RSUs; 21,722 non-vested Performance RSUs and 4,320,776 shares of common stock available for grant.

Stock Option Activity   

The following is a summary of all stock option transactions during the three months ended March 31, 2019:

 

 

 

Options

 

 

Weighted

Average

Exercise Price

 

 

Weighted Average

Remaining

Contractual Term

(Yrs)

 

Outstanding at December 31, 2018

 

 

923,823

 

 

$

3.23

 

 

 

 

 

Granted at market price

 

 

 

 

 

 

 

 

 

 

Cancelled or expired

 

 

 

 

 

 

 

 

 

 

Exercised

 

 

(17,438

)

 

 

2.11

 

 

 

 

 

Outstanding at March 31, 2019

 

 

906,385

 

 

$

3.25

 

 

 

4.58

 

Options exercisable at March 31, 2019

 

 

818,885

 

 

$

3.20

 

 

 

4.31

 

 

At March 31, 2019, 906,385 stock options outstanding and 818,885 stock options exercisable had an exercise price lower than the market price of the Company’s common stock on that date. The aggregate intrinsic value of these stock options were $3.3 million and $3.0 million, respectively.        

8


 

Restricted Stock Activity

The following is a summary of Restricted Stock activity during the three months ended March 31, 2019:

 

 

 

Restricted

Shares

 

 

Weighted

Average

Fair Value

 

Non-vested restricted stock at December 31, 2018

 

 

1,355,000

 

 

$

4.58

 

Granted at market price

 

 

1,141,724

 

 

 

7.16

 

Vested

 

 

(381,121

)

 

 

4.39

 

Cancelled

 

 

(25,000

)

 

 

7.15

 

Non-vested restricted stock at March 31, 2019

 

 

2,090,603

 

 

$

5.95

 

 

Restricted Stock Unit Activity

The following is a summary of all RSU activity during the three months ended March 31, 2019:

 

 

 

Restricted

Stock Units

 

 

Weighted

Average

Fair Value

 

Non-vested restricted stock units at December 31, 2018

 

 

72,168

 

 

$

4.59

 

Granted at market price

 

 

30,000

 

 

 

7.15

 

Vested

 

 

(40,334

)

 

 

4.60

 

Cancelled

 

 

 

 

 

 

Non-vested restricted stock units at March 31, 2019

 

 

61,834

 

 

$

5.82

 

 

Performance RSU Activity

The following is a summary of all Performance RSU activity during the three months ended March 31, 2019:

 

 

 

Performance

RSUs

 

 

Weighted

Average

Fair Value

 

Non-vested performance RSUs at December 31, 2018

 

 

12,499

 

 

$

4.20

 

Granted at market price