So, how is what Canb does different than other companies in terms of providing stock compensation?
CVSI recorded $20 million in recognized & unrecognized stock compensation last year, while recording a net loss of $16 million.
$10 million of the stock compensation was given to their former CEO in 2019, even though two years earlier he resigned and "settled" with the SEC on charges of defrauding and scamming investors while the CEO of CVSI.
Per their 10-k
"The Company recognized stock-based compensation expense of $15.1 million and $2.9 million for the years ended December 31, 2019 and 2018, respectively. During the year ended December 31, 2019, the Company's former President and Chief Executive Officer, Mona Jr., and the Company entered into a Settlement Agreement (the “Settlement Agreement”), pursuant to which the Company agreed that Mona Jr.’s resignation from the Company on January 22, 2019 was for Good Reason (as defined in Mona Jr.’s Employment Agreement) and agreed to extend the deadline for Mona Jr.’s exercise of his stock options for a period of five years. In exchange, Mona Jr. agreed that notwithstanding the terms of his Employment Agreement providing for acceleration of vesting of all stock options and restricted stock units (RSU's) upon a Good Reason resignation, certain of his unvested stock options would not immediately vest, but rather continue to vest if, and only if, certain Company milestones are achieved related to the Company’s drug development efforts. These stock options were issued in July 2016 (6,000,000 options) and March 2017 (5,000,000 options). The Company and Mona Jr. also agreed to mutually release all claims arising out of and related to Mona Jr.’s resignation and separation from the Company. As a result of the Settlement Agreement, the Company recorded stock-based compensation expense related to the accelerated vesting of the RSU's of $5.1 million and the modification of certain stock options of $2.7 million during the year ended December 31, 2019. In addition, on December 31, 2019, the Company's former Chief Operating Officer and co-founder ("Mona III") resigned from the Company. The Company recorded stock-based compensation expense related to the accelerated vesting of Mona III's unvested outstanding options of $1.7 million during the year ended December 31, 2019 with no assumed forfeiture rate.
As of December 31, 2019, total unrecognized compensation cost related to non-vested stock-based compensation arrangements was $4.8 million which is expected to be recognized over a weighted-average period of 2.1 years."
