Stock-based Compensation

6 Months Ended

Jun. 30, 2023

NOTE 8 – Stock-based Compensation

Prior to June 21, 2023, the Company issued stock-based compensation awards to its directors and officers under the 2018 Long Term Incentive Plan (“LTIP”) which allowed the grant of non-qualified and incentive stock options, stock appreciation rights, full value awards and cash incentive awards. The maximum number of shares that could be awarded under that plan was 1,293,109 shares.

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. During the six months ended June 30, 2023 and 2022, the Company recorded $95 thousand and $58 thousand of director stock compensation expense, respectively, based on the fair value of the stock, which was determined using the fair value of the stock on the dates of the awards.

During March of 2022, the Company issued 495,262 shares of restricted stock to its officers and employees under the LTIP, of which 82,556 shares have been forfeited as of June 30, 2023. Each restricted stock award was 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 ended June 30, 2023 and 2022, the Company recorded $37 thousand and $43 thousand of stock-based compensation expense, respectively. During the six months ended June 30, 2023 and 2022, the Company recorded $75 thousand and $45 thousand of stock-based compensation expense, respectively.

On June 21, 2023, stockholders approved an Amendment and Restatement of the 2018 Long Term Incentive Plan (“Amended and Restated LTIP”) which allows the issuance of 3,900,000 additional shares and brought the number of shares that may be issued under the Amended and Restated LTIP to 5,193,109 shares.

On June 21, 2023, the Company issued 741,758 shares to its officers and employees under the Amended and Restated LTIP, of which no shares have been forfeited as of June 30, 2023. Each restricted stock award was 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 each of the three and six months ended June 30, 2023, the Company recorded $16 thousand of stock-based compensation expense related to these restricted stock awards.

As of June 30, 2023, 1,702,510 shares had been awarded under the Amended and Restated LTIP and 3,490,599 shares were available to be awarded.

No stock options were granted, exercised, forfeited or expired during the three and six months ended June 30, 2023 or the three and six months ended June 30, 2022.

Options outstanding and exercisable at June 30, 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	2.63 years	$	1.62	$	–		250,000	$	1.62	$	–

The Company did not record any stock-based compensation expense related to stock options during the three and six months ended June 30, 2023 and 2022.