STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2024

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY

6.    STOCKHOLDERS’ EQUITY:

Stock Option and Restricted Stock Grant Plan

The 2019 Equity and Performance Incentive Plan is an equity performance incentive plan for stock options and restricted stock. Both Class A and Class D common stock are available for grant. The Company settles stock options, net of tax, upon exercise by issuing stock.

Pursuant to the terms of  the Company’s stock plan and subject to the Company’s insider trading policy, a portion of each recipient’s vested shares may be sold in the open market for tax purposes on or about the vesting dates.

Transactions and other information relating to stock options of Class D common stock for the three months ended March 31, 2024, are summarized below:

				Weighted-Average
				Remaining	Aggregate
	Number of	Weighted-Average		Contractual Term	Intrinsic
	Options	Exercise Price		(In Years)	Value
Outstanding at December 31, 2023	5,224,136	$	2.90	5.28	$	5,021,952
Grants	740,139		3.56	—		—
Exercised	—		—	—		—
Forfeited/cancelled/expired/settled	—		—	—		—
Outstanding at March 31, 2024(1)	5,964,275		2.99	5.62	$	377,161
Vested and expected to vest at March 31, 2024	5,909,679		2.97	5.59		377,161
Unvested at March 31, 2024	468,035		4.61	8.98		—
Exercisable at March 31, 2024	5,496,240		2.85	5.33		377,161

(1)   The aggregate intrinsic value in the table above represents the difference between the Company’s stock closing price on the last day of trading during the three months ended March 31, 2024, and the exercise price, multiplied by the number of shares that would have been received by the holders of in-the-money options had all the option holders exercised their options on March 31, 2024. This amount changes based on the fair market value of the Company’s stock.

As of March 31, 2024, $0.7 million of total unrecognized compensation cost related to Class D stock options is expected to be recognized over a weighted-average period of 8 months. The weighted-average grant date fair value of options granted during the three months ended March 31, 2024 was $1.82.

The Company did not grant any options to purchase shares of Class A common stock during the three months ended March 31, 2024.

Activity relating to grants of restricted shares of Class D common stock for the three months ended March 31, 2024, are summarized below:

		Average
		Fair Value
		at Grant
	Shares	Date
Unvested at December 31, 2023	313,117	$	4.77
Grants	1,190,382		3.48
Vested	(1,087,979)		3.50
Forfeited/cancelled/expired	—		—
Unvested at March 31, 2024	415,520	$	4.39

Restricted stock grants for Class A and Class D shares are included in the Company’s outstanding share numbers on the effective date of grant.

The Company did not grant any restricted shares of Class A stock during the three months ended March 31, 2024. There were no restricted shares of Class A common stock that vested or were cancelled during the period. There were 750,000 unvested shares of restricted Class A common stock as of March 31, 2024 and December 31, 2023.

As of March 31, 2024, approximately $1.0 million of total unrecognized compensation cost related to awards of restricted Class D common stock is expected to be recognized over a weighted-average period of 8 months and approximately $1.1 million of total unrecognized compensation cost related to awards of restricted Class A common stock is expected to be recognized over a weighted-average period of 9 months.