Stock-based Compensation

3 Months Ended

Mar. 31, 2023

NOTE 8 – 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 December 31, 2018. As of March 31, 2023, 968,572 shares had been awarded and 324,537 shares are available under the LTIP.

During February of 2023 and 2022, the Company issued 73,840 and 47,187 shares of stock, respectively, to its directors under the LTIP, which were fully vested. The Company recorded $96 thousand and $84 thousand of compensation expense during the three months ended March 31, 2023 and 2022, respectively, 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 LTIP of which 74,736 shares have been forfeited as of March 31, 2023. 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. During the three months ending March 31, 2023 and 2022, the company recorded $38 thousand and $15 thousand of stock-based compensation expense, respectively.

No stock options were granted during the three months ended March 31, 2023 and 2022.

The following table summarizes stock option activity during the three months ended March 31, 2023:

	March 31, 2023
	Number Outstanding		Weighted Average Exercise Price
Outstanding at beginning of period		250,000	$	1.62
Granted during period		–		–
Exercised during period		–		–
Forfeited or expired during period		–		–
Outstanding at end of period		250,000	$	1.62
Exercisable at end of period		250,000	$	1.62

The Company did not record any stock-based compensation expense related to stock options during the three months ended March 31, 2023 and 2022.

Options outstanding and exercisable at March 31, 2023 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
	250,000	2.88 years	$	1.62	$	–		250,000	$	1.62	$	–