Stock-based Compensation

3 Months Ended

Mar. 31, 2022

NOTE (9) – Stock-based Compensation

The Long-Term Incentive Plan, which was adopted by the Company and approved by the stockholders in 2018 (the “LTIP”), permits the grant of non-qualified and incentive stock options, stock appreciation rights, full value awards and cash incentive awards. The plan is 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 March 31, 2022, there were 1,023,513 shares that had been awarded and 269,596 shares that were available to be issued under the LTIP.

During February of 2022 and 2021, the Company issued 47,187 and 20,736 shares of stock, respectively, to its directors under the 2018 LTIP, which were fully vested. The Company recorded $84 thousand and $45 thousand of compensation expense during the quarters ended March 31, 2022 and March 31, 2021, based on the fair value of the stock, which was determined using the fair value of the stock on the date of the award.

During March of 2022, the Company issued 495,262 shares to its officers and employees under the 2018 LTIP. Each restricted stock award is valued based on the fair value of the stock on the date of the award. These awarded shares of restricted stock fully vest over periods ranging from 36 months to 60 months from their respective dates of grant. Stock based compensation is recognized on a straight-line basis over the vesting period. There were no shares issued to officers and employees during 2021. During the quarter ended March 31, 2021, the company recorded $119 thousand of stock based compensation expense related to awards granted previously to 2021.

No stock options were granted during the three months ended March 31, 2022 and 2021.

The following table summarizes stock option activity during the three months ended March 31, 2022 and 2021:

	Three months Ended March 31, 2022				Three months Ended March 31, 2021
	Number Outstanding		Weighted Average Exercise Price		Number Outstanding		Weighted Average Exercise Price
Outstanding at beginning of period		450,000	$	1.62		450,000	$	1.62
Granted during period		-		-		-		-
Exercised during period		-		-		-		-
Forfeited or expired during period		-		-		-		-
Outstanding at end of period		450,000	$	1.62		450,000	$	1.62
Exercisable at end of period		450,000	$	1.62		450,000	$	1.62

The Company did not record any stock-based compensation expense related to stock options during the three months ended March 31, 2022. For the three months ended March 31, 2021, the Company recorded $6 thousand of expense related to stock options.

Options outstanding and exercisable at March 31, 2022 were as follows:

Outstanding							Exercisable
Number Outstanding		Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Aggregate Intrinsic Value		Number Outstanding		Weighted Average Exercise Price		Aggregate Intrinsic Value
	450,000		$	1.62				450,000	$	1.62
	450,000	4.40 years	$	1.62	$	-		450,000	$	1.62	$	-