The Company’s Board of Directors approved the 2018 Equity Incentive Plan, or the 2018 Plan, which was approved by the Company’s stockholders on June 15, 2018. The terms of 2018 Plan provide for grants of a variety of different type of stock awards to the Company’s employees and non-employee directors, including options, restricted stock, restricted stock units, and stock appreciation rights, etc. On April 22, 2020, the Company’s Board of Directors approved an amendment to the 2018 Plan to increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 19, 2020, and subsequently on April 26, 2022, the Company’s Board of Directors approved an additional amendment to the 2018 Plan to increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 14, 2022. A total of 5,710,968 shares of the Company’s common stock are issuable under the 2018 Plan, and 3,396,965 remained issuable as of September 30, 2022. Awards under the 2018 Plan are subject to certain limitations as set forth in the 2018 Plan, which will terminate when all shares of common stock authorized for delivery have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2018 Plan, whichever occurs first.

The Company’s Board of Directors approved the 2015 Employee Restricted Stock Plan, or the 2015 Restricted Stock Plan, on February 13, 2015, which was approved by the Company’s shareholders on June 5, 2015. The 2015 Restricted Stock Plan became effective upon the Company’s receipt of exemptive relief from the SEC on March 1, 2016. The terms of 2015 Restricted Stock Plan provided for grants of restricted stock awards to the Company’s employees. A grant of restricted stock is a grant of shares of the Company’s common stock which, at the time of issuance, is subject to certain forfeiture provisions, and thus is restricted as to transferability until such forfeiture restrictions have lapsed. A total of 700,000 shares of the Company’s common stock were issuable under the 2015 Restricted Stock Plan, and 241,919 remained issuable as of June 15, 2018. Effective June 15, 2018, the 2018 Plan was approved, and these remaining shares were rolled into the 2018 Plan. Awards under the 2015 Restricted Stock Plan are subject to certain limitations as set forth in the 2015 Restricted Stock Plan. The 2015 Restricted Stock Plan will terminate when all shares of common stock authorized for delivery under the 2015 Restricted Stock Plan have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2015 Restricted Stock Plan, whichever occurs first.

The Company had a stock option plan, the 2006 Stock Option Plan, available to grant both incentive and nonqualified stock options to employees. The 2006 Stock Option Plan, which was approved by the Board of Directors on February 15, 2006 and shareholders on June 16, 2006, provided for the issuance of a maximum of 800,000 shares of common stock of the Company. No additional shares are available for issuance under the 2006 Stock Option Plan. The 2006 Stock Option Plan was administered by the Compensation Committee of the Board of Directors. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. The term and vesting periods of the options were determined by the Compensation Committee, provided that the maximum term of an option could not exceed a period of ten years.

The Company’s Board of Directors approved the 2015 Non-Employee Director Stock Option Plan, or the 2015 Director Plan, on March 12, 2015, which was approved by the Company’s shareholders on June 5, 2015, and on which exemptive relief to implement the 2015 Director Plan was received from the SEC on February 29, 2016. A total of 300,000 shares of the Company’s common stock were issuable under the 2015 Director Plan, and 258,334 remained issuable as of June 15, 2018. Effective June 15, 2018, the 2018 Plan was approved, and these remaining shares were rolled into the 2018 Plan. Under the 2015 Director Plan, unless otherwise determined by a committee of the Board of Directors comprised of directors who are not eligible for grants under the 2015 Director Plan, the Company granted options to purchase 12,000 shares of the Company’s common stock to a non-employee director upon election to the Board of Directors, with an adjustment for directors who were elected to serve less than a full term. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. Options granted under the 2015 Director Plan are exercisable annually, as defined in the 2015 Director Plan. The term of the options could not exceed ten years.

The Company’s Board of Directors approved the First Amended and Restated 2006 Director Plan, or the Amended Director Plan, on April 16, 2009, which was approved by the Company’s shareholders on June 5, 2009, and on which exemptive relief to implement the Amended Director Plan was received from the SEC on July 17, 2012. A total of 200,000 shares of the Company’s common stock were issuable under the Amended Director Plan. No additional shares are available for issuance under the Amended Director Plan. Under the Amended Director Plan, unless otherwise determined by a committee of the Board of Directors comprised of directors who are not eligible for grants under the Amended Director Plan, the Company would grant options to purchase 9,000 shares of the Company’s common stock to an Eligible Director upon election to the Board of Directors, with an adjustment for directors who were elected to serve less than a full term. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. Options granted under the Amended Director Plan are exercisable annually, as defined in the Amended Director Plan. The term of the options could not exceed ten years.

Additional shares are only available for future issuance under the 2018 Plan. At September 30, 2022, 1,081,123 options on the Company’s common stock were outstanding under the Company’s plans, of which 552,056 options were exercisable. Additionally, there were 744,306 unvested shares under the Company’s restricted common stock plan, 130,939 unvested restricted stock units, and 60,992 vested restricted stock units under the Company’s restricted stock plans.

The fair value of each restricted stock grant is determined on the date of grant by the closing market price of the Company’s common stock on the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The weighted average fair value of options granted was $3.50 per share for the nine months ended September 30, 2021. The following assumption categories are used to determine the value of any option grants. There were no grants issued during the nine months ended September 30, 2022.

The following table presents the activity for the stock option programs for the 2022 first, second, and third quarters and the 2021 full year.


	Number of Options				Exercise Price Per Share			Weighted Average Exercise Price
Outstanding at December 31, 2020 (2)		951,669		$	2.14 - 12.55		$		6.41
Granted		317,398				6.79			6.79
Cancelled		(113,310	)		4.89 - 11.53				6.64
Exercised (1)		(44,070	)		5.21 - 7.25				5.58
Outstanding at December 31, 2021		1,111,687		$	2.14 - 12.55		$		6.41
Granted		—				—			—
Cancelled		(4,783	)		4.89 - 7.25				5.69
Exercised (1)		(23,192	)		4.89 - 7.25				6.53
Outstanding at March 31, 2022 (2)		1,083,712		$	2.14 - 12.55			$	6.53
Granted		—				—			—
Cancelled		(2,103	)		4.89 - 7.25				6.37
Exercised (1)		—				—			—
Outstanding at June 30, 2022 (2)		1,081,609		$	2.14 - 12.55			$	6.53
Granted		—				—			—
Cancelled		(486	)		4.89 - 7.25				6.07
Exercised (1)		—				—			—
Outstanding at September 30, 2022 (2)		1,081,123		$	2.14 - 12.55			$	6.53
Options exercisable at:
December 31, 2021		320,922		$	2.14 - 12.55			$	6.53
September 30, 2022		552,056		$	2.14 - 12.55			$	6.54

(1)

The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $0 and less than $0.1 million for the three and nine months ended September 30, 2022 and was $0.2 million for the year ended December 31, 2021.

(2)

The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2022 and the related exercise price of the underlying options, was $0.6 million for outstanding options and $0.3 million for exercisable options as of September 30, 2022. The remaining contractual life was 7.3 years for outstanding options and 6.8 years for exercisable options at September 30, 2022.

The following table presents the activity for the restricted stock programs for the 2022 first, second, and third quarters and the 2021 full year.


	Number of Shares				Grant Price Per Share		Weighted Average Grant Price
Outstanding at December 31, 2020		416,140		$	4.39 - 7.25		$	6.24
Granted		258,120			6.79 - 8.40			7.38
Cancelled		(21,940	)		4.89 - 7.25			5.98
Vested (1)		(158,994	)		4.39 - 7.25			6.16
Outstanding at December 31, 2021(2)		493,326		$	4.89 - 8.40		$	6.87
Granted		383,925				7.68		7.68
Cancelled		(5,747	)		4.89 - 8.40			7.33
Vested (1)		(126,234	)		4.89 - 7.25			6.55
Outstanding at March 31, 2022(2)		745,270		$	4.89 - 8.40		$	7.34
Granted		—				—		—
Cancelled		(583	)		4.89 - 8.40			7.58
Vested (1)		—				—		—
Outstanding at June 30, 2022(2)		744,687		$	4.89 - 8.40		$	7.34
Granted		—				—		—
Cancelled		(381	)		4.89 - 8.40			7.76
Exercised (1)		—				—		—
Outstanding at September 30, 2022 (2)		744,306		$	4.89 - 8.40		$	7.34

(1)

The aggregate fair value of the restricted stock vested was $0 and $1.0 million for the three and nine months ended September 30, 2022 and was $1.1 million for the year ended December 31, 2021.

(2)

The aggregate fair value of the restricted stock was $5.2 million as of September 30, 2022. The remaining vesting period was 2.4 years at September 30, 2022.

During the three and nine months ended September 30, 2022, the Company granted 129,638 restricted stock units (RSUs) with a grant price of $6.75 and during the year ended December 31, 2021, granted 16,803 RSUs which vested on June 17, 2022 with a grant price of $8.87. For the RSUs granted in 2022 and 2021, unitholders had the option of deferring settlement until a future date if the recipient makes a formal election under the guidelines of IRC Section 409A. As of September 30, 2022, there were 191,931 RSUs outstanding, 60,992 of which had previously vested.

The following table presents the activity for the unvested options outstanding under the plans for the 2022 first, second, and third quarters.


	Number of Options				Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2021		790,765		$	4.89 - 7.25		$	6.52
Granted		—				—		—
Cancelled		(4,200	)		4.89 - 7.25			5.48
Vested		(256,972	)		4.89 - 7.25			6.55
Outstanding at March 31, 2022		529,593		$	4.89 - 7.25		$	6.52
Granted		—				—		—
Cancelled		(365	)		4.89 - 7.25			5.78
Vested		—				—		—
Outstanding at June 30, 2022		529,228		$	4.89 - 7.25		$	6.52
Granted		—				—		—
Cancelled		(161	)		4.89 - 7.25			5.39
Vested		—				—		—
Outstanding at September 30, 2022		529,067		$	4.89 - 7.25		$	6.25

The intrinsic value of the options vested was $0.0 and $0.3 million for the three and nine months ended September 30, 2022.