Stock Acquisition Rights, Stock Options and Warrants | 10. Stock Acquisition Rights, Stock Options and Warrants  The Company established the 2014 Stock Plan (the “2014 Stock Plan”) to attract, retain and reward individuals who contribute to the achievement of the Company’s goals and objectives. This 2014 Stock Plan superseded previous stock plans. As of September 30, 2020, stock options to purchase 18,358 shares of common stock were outstanding and vested under such previous plans .  The Company’s Board has reserved 4,147,985 shares of common stock for issuance under its 2014 Stock Plan as of September 30, 2020, of which 838,251 shares are available for future issuance. The number of shares may increase, based on Board approval, each January 1 through January 1, 2024 by an amount equal to the lesser of (i) 5% of the number of shares of common stock issued and outstanding on the immediately preceding December 31 or (ii) a lesser amount determined by the Board. Effective January 1, 2020, the Board elected to increase the shares authorized under the 2014 Stock Plan by 342,762 shares, which represented 2% of the of the Company’s common stock issued and outstanding as of December 31, 2019. Restricted Stock and Restricted Stock Units  A summary of non-vested restricted stock activity for the six months ended September 30, 2020 is as follows:     Weighted  Average  Restricted Grant Day  Stock Fair Value  Non-vested restricted stock outstanding at March 31, 2020 352,194 $ 37.93  Granted 252,419 48.79  Forfeited — —  Vested (140,218) 39.91  Non-vested restricted stock outstanding at September 30, 2020 464,395 $ 43.23  The Company recognizes compensation expense for restricted stock on a straight-line basis over the explicit vesting period. Vested restricted stock units are settled and issuable upon the earlier of the date the employee ceases to be an employee of the Company or a date certain in the future. Stock compensation expense related to restricted stock was approximately $3.1 million and $4.9 million for the three and six months ended September 30 , 2020 , respectively , which included $0.8 million of expense related to the Type III modification of restricted stock units held by the Company’s former Chairman of the Board upon his transition to a consultant to the Company that is probable of vesting under the modified condition . Stock compensation expense r elated to restricted stock was approximately $1.0 million and $2.0 million for the three and six months ended September 30 , 2019 , respectively.  At September 30, 2020, there was $15.8 million of unvested compensation expense for restricted stock, which is expected to be recognized over a weighted average period of 2.8 years .  Performance Stock Units  A summary of the performance stock unit activity for the six months ended September 30, 2020 is as follows:     Weighted  Average  Performance Grant Day  Stock Fair Value  Performance stock outstanding at March 31, 2020 138,984 $ 46.85  Granted 30,049 49.92  Forfeited — —  Vested (91,216) 46.85  Performance stock outstanding at September 30, 2020 77,817 $ 48.04  On February 28, 2020, the Company awarded 95,538 performance-based restricted stock units. The performance goals are:  (A) Target Goal : 50% of the shares vest upon (i) achievement by December 31, 2020 of a Final Order from the FCC providing for the creation and allocation of licenses for spectrum in the 900 MHz band consisting of paired blocks of contiguous spectrum, each containing at least 3 MHz of contiguous spectrum, authorized for broadband wireless communications uses and (ii) the lack of objection by the Company’s Board to the terms and conditions (including, but not limited to, the rebanding, clearing and relocation procedures, license assignment and award mechanisms and technical and operational rules) set forth or referenced in the Final Order; and  (B) Stretch Goal : The remaining 50% of the performance shares vest and settle upon the occurrence of all three of the following conditions: (i) the Company enters into one or more long-term agreement(s) with critical infrastructure or enterprise business(es) to enable such business(es) to utilize the Company’s spectrum for broadband connectivity; (ii) the combined total contract dollars payable to the Company over the initial term(s) of such agreement(s) equals or exceeds a certain amount as specified by the Board; and (iii) the agreement(s) is/are binding on such business(es) and is/are either not contingent on prior Board approval(s) or such approval(s) has/have been received. If all of these conditions have not been achieved by December 30, 2020, the performance shares will expire unvested.  Additionally, on February 28, 2020, the Company awarded 43,446 performance-based restricted stock units. The performance goal related to these units is: 100% of the shares will vest upon (i) achievement by December 31, 2020 of a Final Order from the FCC providing for the creation and allocation of licenses for spectrum in the 900 MHz band consisting of paired blocks of contiguous spectrum, each containing at least 3 MHz of contiguous spectrum, authorized for broadband wireless communications uses and (ii) the lack of objection by the Company’s Board to the terms and conditions (including, but not limited to, the rebanding, clearing and relocation procedures, license assignment and award mechanisms and technical and operational rules) set forth or referenced in the Final Order. The goal was achieved when the Report and Order was effective in August 2020.  On June 24, 2020, the Company awarded up to 60,098 performance-based restricted units to the newly appointed President and Chief Executive Officer as part of the Succession Plan, (the “CEO Performance Units”). The performance-based restricted units will vest based on the Company’s achievement of revenue metric over a four -year measurement period from the grant date, with 30,049 units vesting if the target revenue metric is achieved and up to 60,098 vesting if the maximum revenue metric is achieved.  For the three and six months ended September 30, 2020, the Company recorded stock compensation expense amounting to approximately $4.3 million based on the achievement of the Target Goal under the performance-based restricted stock units, upon the Report and Order becoming effective in August 2020 . For the three and six months ended September 30, 2019, there was no stock compensation expense recognized for the performance-based restricted stock units. As of September 30, 2020, there was approximately $3.2 million of unvested compensation expense for the outstanding performance-based restricted stock units related to the Stretch Goal and the CEO Performance Units.  Stock Options  A summary of stock option activity for the six months ended September 30, 2020 is as follows:     Options Weighted Average Exercise Price  Options outstanding at March 31, 2020 1,807,466 $ 23.93  Options granted 60,558 49.92  Options exercised (84,704) (26.43)  Options forfeited/expired — —  Options outstanding at September 30, 2020 1,783,320 $ 24.70  On June 24, 2020 , the Company awarded a stock option to purchase 60,558 shares of common stock to its newly appointed President and Chief Executive Officer as part of the Succession Plan. The award has a contractual life of 10 years . 25% of the option shares will vest on July 1, 2021 with the remaining shares vesting in three equal annual installments, based on the President and Chief Executive Officer’s continuous service to the Company through the applicable vesting dates.  The Black-Scholes option model requires weighted average assumptions to be used for the calculation of the Company’s stock compensation expense. The assumptions used during the six months ended September 30, 2020 were: the expected life of the award was 6.07 years; the risk free interest rate was 0.43% ; the expected volatility rate was 53.41% ; the expected dividend yield was 0.0% ; and the expected forfeiture rate was 0% .  Stock compensation expense related to the amortization of the fair value of stock options issued was approximately $0.3 million and $0.5 million for the three and six months ended September 30, 2020. For the three and six months ended September 30, 2019, stock compensation expense was approximately $0.4 million and $1.0 million, respectively .  As of September 30, 2020, there was approximately $1.6 million of unrecognized compensation expense related to non-vested stock options granted under the Company’s stock option plans which is expected to be recognized over a weighted-average period of 1.3 years.  Performance Stock Options  A summary of the performance stock options as of September 30, 2020 is as follows:     Performance Options Weighted Average Exercise Price  Performance Options outstanding at March 31, 2020 82,197 $ 46.85  Performance Options granted — —  Performance Options exercised — —  Performance Options forfeited/expired — —  Performance Options outstanding at September 30, 2020 82,197 $ 46.85   On February 28, 2020, the Company awarded 67,562 performance-based stock options. The performance goals are:  (A) Target Goal : 50% of the shares vest upon (i) achievement by December 31, 2020 of a Final Order from the FCC providing for the creation and allocation of licenses for spectrum in the 900 MHz band consisting of paired blocks of contiguous spectrum, each containing at least 3 MHz of contiguous spectrum, authorized for broadband wireless communications uses and (ii) the lack of objection by the Company’s Board to the terms and conditions (including, but not limited to, the rebanding, clearing and relocation procedures, license assignment and award mechanisms and technical and operational rules) set forth or referenced in the Final Order and  (B) Stretch Goal : The remaining 50% of the performance shares vest and settle upon the occurrence of all three of the following conditions: (i) the Company enters into one or more long-term agreement(s) with critical infrastructure or enterprise business(es) to enable such business(es) to utilize the Company’s spectrum for broadband connectivity; (ii) the combined total contract dollars payable to the Company over the initial term(s) of such agreement(s) equals or exceeds a certain amount as specified by the Board; and (iii) the agreement(s) is/are binding on such business(es) and is/are either not contingent on prior Board of Director approval(s) or such approval(s) has/have been received. If all of these conditions have not been achieved by December 30, 2020, the performance shares will expire unvested.  Additionally, the Company awarded 14,635 performance-based stock options on February 28, 2020. The performance goal is: 100% of the shares will vest upon (i) achievement by December 31, 2020 of a Final Order from the FCC providing for the creation and allocation of licenses for spectrum in the 900 MHz band consisting of paired blocks of contiguous spectrum, each containing at least 3 MHz of contiguous spectrum, authorized for broadband wireless communications uses and (ii) the lack of objection by the Company’s Board to the terms and conditions (including, but not limited to, the rebanding, clearing and relocation procedures, license assignment and award mechanisms and technical and operational rules) set forth or referenced in the Final Order. The goal was achieved when the Report and Order was effective in August 2020.  For the three and six months ended September 30, 2020, the Company recognized $0.8 million based on the achievement of the Target Goal under the performance-based stock options, upon the Report and Order becoming effective in August 2020. As of September 30, 2020, there was approximately $0.6 million of unvested compensation expense relating to the outstanding performance-based stock options for the Stretch Goal.  Motorola Investment  On September 15, 2014, Motorola invested $10.0 million to purchase 500,000 Class B Units of the Company’s subsidiary, PDV Spectrum Holding Company, LLC (at a price equal to $20.00 per unit). The Company owns 100% of the Class A Units in this subsidiary. Motorola has the right at any time to convert its 500,000 Class B Units into 500,000 shares of the Company’s common stock. The Company also has the right to force Motorola’s conversion of these Class B Units into shares of its common stock at its election. Motorola is not entitled to any assets, profits or distributions from the operations of the subsidiary. In addition, Motorola’s conversion ratio from Class B Units to shares of the Company’s common stock is fixed on a one -for-one basis, and is not dependent on the performance or valuation of either the Company or the subsidiary. The Class B Units have no redemption or call provisions and can only be converted into shares of the Company’s common stock. Management has determined that this investment does not meet the criteria for temporary equity or non-controlling interest due to the limited rights that Motorola has as a holder of Class B Units, and accordingly has presented this investment as part of its permanent equity within Additional Paid-in Capital in the accompanying consolidated financial statements. |