Stock-Based Compensation

6 Months Ended

Jun. 30, 2024

Share-Based Compensation Arrangement by Share-Based Payment Award, Additional General Disclosures [Abstract]

Stock-Based Compensation

(8) Stock-Based Compensation

In 2018, shareholders approved the Company’s 2018 Equity Incentive Plan, which authorizes the issuance of up to 133,987 shares of common stock pursuant to restricted stock grants and up to 334,970 shares of common stock pursuant to the exercise of options.

In May 2022, shareholders approved the Company’s 2022 Equity Incentive Plan, which authorizes the issuance of up to 148,060 shares of common stock pursuant to restricted stock grants and up to 370,150 shares of common stock pursuant to the exercise of options.

A Black-Scholes model is utilized to estimate the fair value of stock option grants, while the market price of the Company’s stock at the date of grant is used to estimate the fair value of restricted stock awards.

A summary of the Company’s stock option activity is summarized below.

Stock Options	Option Shares Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Life (Years)		Aggregate Intrinsic Value (in thousands)
Outstanding - December 31, 2023		640,766	$	12.58		7.75	$	1,419
Outstanding - March 31, 2024		640,766		12.58		7.51		2,476
Exercisable - March 31, 2024		236,905		10.98		6.28		1,294
Outstanding - June 30, 2024		640,766		12.58		7.26		3,517
Exercisable - June 30, 2024		301,171	$	10.90		6.01	$	2,170

Intrinsic value represents the amount by which the fair market value of the underlying stock exceeds the exercise price of the stock options. A summary of the Company’s restricted stock activity is summarized below.

Restricted Stock	Restricted Shares Outstanding			Weighted Average Grant Date Fair Value
Outstanding - December 31, 2023		166,591		$	13.46
Vested		(3,467	)
Outstanding - March 31, 2024		163,124			13.44
Vested		(27,174	)
Outstanding - June 30, 2024		135,950		$	14.06

The Company recognized approximately $321,000 and $264,000, of stock-based compensation expense during the three months ended June 30, 2024 and 2023 respectively, associated with its common stock awards granted to directors and officers. The Company recognized approximately $670,000 and $524,000, of stock-based compensation expense during the six months ended June 30, 2024 and 2023 respectively, associated with its common stock awards granted to directors and officers.

As of June 30, 2024, there was approximately $3.1 million of unrecognized compensation cost related to equity award grants. The cost is expected to be recognized over the weighted average remaining vesting period of approximately 2.03 years.