On November 4, 2020, the Board adopted, the Regional Health Properties, Inc. 2020 Equity Incentive Plan (the "2020 Plan"). The Company's shareholders approved the 2020 Plan on December 16, 2020 at the 2020 Annual Meeting of Shareholders of the Company. The maximum number of shares of common stock authorized for issuance under the 2020 Plan is 250,000 shares, subject to certain adjustments. No awards may be made under the 2020 Plan after the 10th anniversary of the date of shareholder approval of the 2020 Plan, and no incentive stock options may be granted after the 10th anniversary of the date of Board approval of the 2020 Plan. As of June 30, 2023, the number of securities remaining available for future issuance under the 2020 Plan is 52,805.

The 2020 Plan replaced the AdCare Health Systems, Inc. 2011 Stock Incentive Plan, as amended (the "2011 Plan"), which was assumed by Regional Health pursuant to the Merger. The 2011 Plan was originally due to expire on March 28, 2021 and

provided for a maximum of 168,950 shares of common stock to be issued. No additional awards may be granted under the 2011 Plan.

The shares of common stock underlying any awards granted under the 2020 Plan or the 2011 Plan that are forfeited, canceled, or otherwise terminated (other than by exercise) will be added back to the shares of common stock available for issuance under the 2020 Plan. However, shares: (i) tendered or held back upon exercise of a stock option or other award under the 2020 Plan to cover the exercise price or tax withholding; and (ii) subject to a stock appreciation right that are not issued in connection with the stock settlement of the stock appreciation right upon exercise thereof, will not be added back to the shares of common stock available for issuance under the 2020 Plan. In addition, shares of common stock repurchased by the Company on the open market will not be added back to the shares of common stock available for issuance under the 2020 Plan.

For the three and six and months ended June 30, 2023 and 2022, the Company recognized stock-based compensation expense as follows:


	Three Months Ended June 30,					Six Months Ended June 30,
(Amounts in 000’s)	2023		2022			2023		2022
Employee compensation:
Stock compensation expense	$	155	$	58		$	236	$	169
Forfeitures of stock based awards		—		(54	)		—		(54	)
Total employee stock-based compensation expense	$	155	$	4		$	236	$	115

As of June 30, 2023, the remaining stock-based compensation expense that is expected to be recognized in future periods is $0.4 million.

The following table summarizes the Company's restricted stock activity for the six months ended June 30, 2023:


	Number of Shares (000's)			Weighted Avg. Grant Date (per Share) Fair Value
Unvested, December 31, 2022		51		$	8.99
Granted		99		$	3.61
Vested		(26	)	$	9.06
Unvested, June 30, 2023		124		$	4.68

The remaining unvested shares at June 30, 2023 will vest over the next 2.6 years with $0.4 million in compensation expense recognized over this period.

The following summarizes the Company's employee and non-employee stock option activity for the six months ended June 30, 2023:


	Number of Shares (000's)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (000's)
Outstanding, December 31, 2022		13	$	47.53		0.5	$	—
Granted		24	$	3.32		9.5	$	—
Outstanding and Vested, June 30, 2023		37	$	18.63		6.6	$	6.7

The aggregate intrinsic value of options outstanding and vested was calculated as the difference between the exercise price of the options and the fair value of the Company’s common stock as of June 30, 2023. The fair value of the common stock is the closing stock price of the Company's Common Stock.

The following summary information reflects stock options outstanding, vested, and related details as of June 30, 2023:


	Stock Options Outstanding						Stock Options Exercisable
Exercise Price	Number of Shares (000's)		Weighted Average Remaining Contractual Term (in years)		Weighted Average Exercise Price		Vested, June 30, 2023		Weighted Average Exercise Price
$3.32		24		9.5	$	3.32		24	$	3.32
$46.80 - $48.72		13		0.4	$	47.42		13	$	47.42
Total		37		6.6	$	18.63		37	$	18.63

The following summarizes the Company's employee and non-employee common stock warrant activity for the six months ended June 30, 2023:


	Outstanding and Exercisable
	Number of Shares (000's)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)
Outstanding and Vested, December 31, 2022		35		$	53.31		1.9
Expired		(2	)	$	70.80		—
Outstanding and Vested, June 30, 2023		33		$	52.38		1.5

The Company has no unrecognized compensation expense related to common stock warrants as of June 30, 2023.