Stock-Based Compensation

12 Months Ended

Dec. 31, 2021

Note 18 – Stock‑Based Compensation

Prior to July 25, 2018, the Company issued stock‑based compensation awards to its directors and employees under the 2008 Long‑Term Incentive Plan (“2008 LTIP”). The 2008 LTIP permitted the grant of non‑qualified and incentive stock options, stock appreciation rights, full value awards and cash incentive awards for up to 2,000,000 shares of common stock. As of July 25, 2018, the Company ceased granting awards under the 2008 LTIP.

On July 25, 2018, the stockholders approved the 2018 Long‑Term Incentive Plan (“2018 LTIP”). As with the 2008 LTIP, the 2018 LTIP permits the grant of non‑qualified and incentive stock options, stock appreciation rights, full value awards and cash incentive awards. The plan will be in effect for ten years. The maximum number of shares that can be awarded under the plan is 1,293,109 shares of common stock. As of December 31, 2021, 481,064 shares had been awarded and 812,045 shares were available under the 2018 LTIP.

No stock options were granted during the years ended December 31, 2021 and December 31, 2020.

The following table summarizes stock option activity during the years ended December 31, 2021 and 2020:

	2021				2020
	Number Outstanding		Weighted Average Exercise Price		Number Outstanding			Weighted Average Exercise Price
Outstanding at beginning of year		450,000	$	1.62		455,000		$	1.67
Granted during the year		-		-		-			-
Exercised during the year		-		-		-			-
Forfeited or expired during the year		-		-		(5,000	)		6.00
Outstanding at end of year		450,000	$	1.62		450,000		$	1.62
Exercisable at end of year		450,000	$	1.62		360,000		$	1.62

For the years ended December 31, 2021 and 2020, the Company recorded $7 thousand and $39 thousand, respectively, of stock‑based compensation expense related to stock options. As of December 31, 2021, there was no unrecognized compensation cost related to non-vested stock options granted under the plan.

Options outstanding and exercisable at year‑end 2021 were as follows:

	Outstanding							Exercisable
Grant Date	Number Outstanding		Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Aggregate Intrinsic Value		Number Outstanding		Weighted Average Exercise Price		Aggregate Intrinsic Value
February 24, 2016		450,000	4.15 years	$	1.62				450,000	$	1.62
		-	4.15 years	$	1.62	$	-		450,000	$	1.62	$	-

In February 2021 and 2020, the Company awarded 20,736 and 30,930 shares of common stock, respectively, to its directors under the 2018 LTIP, which are fully vested. The Company recorded $45 thousand of compensation expense in each of the years ended December 31, 2021 and December 31, 2020, based on the fair value of the stock, which was determined using the average of the high and the low price of the stock on the date of the award.

In July of 2021, the Company awarded 64,516 shares of common stock to its Chief Executive Officer, which are fully vested. The company recorded $200 thousand of compensation expense for the year ended December 31, 2021 based on the fair value of the stock, which was determined using the average of the high and the low price of the stock on the date of the award.

In February 2020, the Company awarded 140,218 shares of restricted stock to its officers and employees under the 2018 LTIP. Each restricted stock award was valued based on the fair value of the stock, which was determined using the average of the high and the low price of the stock on the date of the award. These awarded shares of restricted stock became fully vested on April 1, 2021, the date of the Merger, and all unrecognized compensation expense was recognized at that time. During 2021, and 2020, the Company recorded $153 thousand and $340 thousand of stock based compensation expense related to shares awarded to employees. As all restricted stock awarded to employees were fully vested as of December 31, 2021, there was no remaining unrecognized compensation cost related to non-vested restricted stock awards as of December 31, 2021.