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Stock-Based Compensation
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
In January 2019, the Company’s Board of Directors adopted the 2019 Stock Incentive Plan (the “Plan”). A total of 2,000,000 shares of common stock were authorized and reserved for issuance under the Plan in the form of incentive or nonqualified stock options and stock awards. A compensation committee appointed by the Board of Directors of the Company determines the terms and conditions of each grant under the Plan. Employees, directors, and consultants are eligible to receive stock options and stock awards under the Plan. The aggregate number of shares available under the Plan and the number of shares subject to outstanding options may be increased or decreased by the Plan administrator to reflect any changes in the outstanding common stock by reason of any recapitalization, reorganization, reclassification, stock split, reverse split, combination of shares, exchange of shares, stock dividend or other distribution payable in capital stock or similar transaction.
The exercise price of incentive stock options may not be less than the fair market value of the common stock at the date of grant. The exercise price of incentive stock options granted to individuals that own greater than 10% of the voting stock may not be less than 110% of the fair market value of the common stock at the date of grant.
The term of each incentive and nonqualified option is based upon conditions as determined by the option agreement; however, the term can be no more than ten years from the date of the grant. In the case of an incentive stock option granted to an optionee who, at the time the option is granted, owns stock representing more than 10% of the voting power of all classes of stock of the Company or any parent or subsidiary, the term of the option will be a shorter term as provided in the option agreement, but not more than five years from the date of the grant.

As of June 30, 2023, a total of 1,330,683 shares of common stock were available for further award grants under the Plan. For the three months ended June 30, 2023 and 2022, the Company recognized a total of $216,000 and $565,000 in stock-based compensation expense, respectively. For the six months ended June 30, 2023 and 2022, the Company recognized a total of $493,000 and $1,176,000 in stock-based compensation expense, respectively. The Company recognizes stock-based compensation over the vesting period, which is generally three (3) years for both the restricted stock units and stock options.
Stock Options
A summary of the Company’s stock option activity under the Plan for the period ended June 30, 2023 is as follows:
Number of Options
Weighted-Average Exercise Price
Weighted-Average Remaining Contract Life (In Years)
Aggregate Intrinsic Value
Outstanding at December 31, 2022420,000 $18.6 8.8$— 
Forfeited(6,666)18.9 
Outstanding at Outstanding at June 30, 2023413,334 $18.6 8.3$— 
Expected to vest at June 30, 2023413,334 $18.6 8.3$— 
Exercisable at June 30, 2023140,000 $18.6 8.3$— 
There were no stock options granted during the six months ended June 30, 2023. At June 30, 2023, total remaining stock-based compensation cost for unvested stock options under the Plan was approximately $444,000. The cost is expected to be recognized over a weighted-average period of 1.1 years.
The aggregate intrinsic value is calculated by subtracting the exercise price of the option from the closing price of the Company’s common stock on June 30, 2023, multiplied by the number of shares per each option.
Restricted Stock Units
The Company issued restricted stock units to its employees. The following table summarizes the unvested restricted stock units for the six months ended June 30, 2023:
Number of Shares Outstanding
Weighted Average Grant Date Fair Value
Unvested at December 31, 202282,146 11.47
Vested(4,550)16.64
Forfeited (1,667)10.00
Unvested at June 30, 202375,929 11.19
At June 30, 2023, total remaining stock-based compensation cost for unvested restricted stock units was approximately $128,000. The cost is expected to be recognized over a weighted-average period of 0.5 years.