Stock-Based Compensation

9 Months Ended

Sep. 30, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

H. Stock-Based Compensation

Under the Company’s 2021 Incentive Plan, and the prior 2011 Incentive Plan, as amended, restricted stock and stock options have been awarded to certain employees as stock-based compensation. Compensation expense is based on the grant-date fair value and recognized over the requisite service period.

In April 2022, 30,000 restricted shares were issued with a grant date fair value of $10.46 per share, 15,000 restricted shares vested, and 4,786 of the vested shares were withheld to pay taxes. Stock-based compensation expense was $80,000 and $383,000 for the three and nine months ended September 30, 2022, respectively and $19,000 and $116,000 for the three and nine months ended September 30, 2021, respectively. During the third quarter of 2022, there were 15,000 options exercised at a strike price of $12.72 for aggregate proceeds of $191,000. As of September 30, 2022 there was approximately $395,000 of total unrecognized compensation expense related to unvested stock-based compensation arrangements, primarily related to restricted stock awards. This cost will be recognized over the weighted average remaining service period of these awards, which is 1.8 years for restricted stock and 0.1 years for stock

options. As a result of the cancellation of awards on October 7, 2022, the Company expects to record $5,000 of stock compensation expense related to these outstanding grants subsequent to September 30, 2022. See Note O – Subsequent Events for further detail.