Employee Benefits |
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Employee Benefits |
401(k) Savings Plan
The Company has a retirement savings
401(k) plan covering substantially all employees. Employees may contribute up to the maximum legal limit with the Company matching up to 5%
of the employee’s salary. Employer contributions charged to expense for the six months ended June 30, 2024 and 2023 totaled $233,000
and $209,000, respectively.
Stock-Based
Compensation
The Company adopted an equity incentive
plan (the “Incentive Plan”) in September 2018. The Incentive Plan permits the grant of restricted stock units and nonqualified incentive stock options. The Incentive Plan will terminate in September 2028, if not extended. Compensation expense
related to the Incentive Plan for the three months ended June 30, 2024 and 2023 totaled $637,000 and $621,000, respectively. Compensation expense related to the
Incentive Plan for the six months ended June 30, 2024 and 2023 totaled $1.2 million and $1.1 million, respectively. There were 628,742 shares
available for future grants as of June 30, 2024.
The Company grants to employees and
directors restricted stock units (RSUs) which vest ratably over
, , , , or eight years and stock options which vest ratably over
four years. All RSUs and stock options are granted at the fair value of the common stock at the time of the award. The RSUs are
considered fixed awards as the number of shares and fair value are known at the date of grant and the fair value at the grant date is amortized over the vesting and/or service period.The Company uses newly issued shares for
granting RSUs and stock options.
The following table is a summary of the stock option
activity under the Incentive Plan (dollar amounts in thousands, except per share data):
The fair value of
each option grant is estimated on the date of grant using the Black-Scholes option-pricing model and is based on certain assumptions including risk-free rate of return, dividend yield, stock price volatility and the expected term. The fair value
of each option is expensed over its vesting period.
There were no new grants for the three months ended June 30, 2024 and 2023.
The following table summarizes share information about RSUs
for the six months ended June 30, 2024 and 2023:
As of
June 30, 2024, there was approximately $6.1 million of unrecognized compensation expense related to 260,431 unvested RSUs and $87,000 of
unrecognized compensation expense related to 201,938 unvested and/or unexercised stock options. The stock option expense is expected
to be recognized over a weighted average period of 0.92 years, and the RSU expense is expected to be recognized over a weighted
average period of 3.42 years.
As of June 30, 2023, there was approximately $5.5 million of unrecognized compensation expense related to 258,543 unvested RSUs and $251,000 of unrecognized compensation expense related to 236,813 unvested and/or unexercised stock options. The stock option expense is expected to be recognized over a weighted average period of 1.64 years, and the RSU expense is expected to be recognized over a weighted average period of 4.07 years.
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