Under the Company’s Restated Omnibus Incentive Plan (formerly the Restated 1988 Executive Stock Option Plan) (“the Plan”) as in effect at June 30, 2023, options exercisable for up to 20,615,000 shares of the Company’s common stock may be granted over the life of the Plan to key employees, non-employee directors, and consultants at exercise prices not less than the fair market value of the common stock on the date of grant. Options granted under the Plan are non-statutory stock options and generally vest 25% one year from the date of grant with the remaining 75% vesting ratably each month for the next 36 months. The options granted to employees and the Company’s Board of Directors expire at the end of five years and ten years from the date of grant, respectively. No options were granted during the three months ended June 30, 2023. All options granted in the three months ended June 30, 2022 were granted with an exercise price equal to the fair value of the Company’s common stock on the grant date and are non-statutory stock options.

The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model with the assumptions included in the table below. The Company uses historical data, among other factors, to estimate the expected volatility, the expected dividend yield and the expected option life. The Company accounts for forfeitures as they occur, rather than estimating expected forfeitures. The risk-free rate is based on the interest rate paid on a U.S. Treasury issue with a term similar to the estimated life of the option. No options were granted during the three months ended June 30, 2023. The following assumptions were used to estimate the fair value of options granted during the three months ended June 30, 2022 using the Black-Scholes option-pricing model:

For the three months ended June 30, 2023 and 2022, the Company recorded share-based compensation expense of $1,312,000 and $1,379,000, respectively. The table below shows the amounts recognized in the unaudited consolidated financial statements for stock compensation expense for time-based options and performance-based options during the three months ended June 30, 2023 and 2022, respectively.


	Three Months Ended
	June 30, 2023			June 30, 2022
Cost of revenues	$	668,000		$	580,000
General and administrative		644,000			799,000
Total cost of stock-based compensation included in income before income tax provision		1,312,000			1,379,000
Amount of income tax benefit recognized		(290,000	)		(293,000	)
Amount charged against net income	$	1,022,000		$	1,086,000
Effect on basic earnings per share	$	(0.06	)	$	(0.06	)
Effect on diluted earnings per share	$	(0.06	)	$	(0.06	)

The following table summarizes information for all stock options for the three months ended June 30, 2023 and 2022:


	Three Months Ended June 30, 2023					Three Months Ended June 30, 2022
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Options outstanding, beginning		651,857		$	108.10		723,876		$	84.55
Options granted		—			—		44,600			148.89
Options exercised		(39,471	)		75.79		(43,739	)		42.69
Options cancelled/forfeited		(485	)		149.26		(2,394	)		121.79
Options outstanding, ending		611,901		$	110.10		722,343		$	90.94

The following table summarizes the status of stock options outstanding and exercisable at June 30, 2023:


Range of Exercise Price	Number of Outstanding Options		Weighted Average Remaining Contractual Life		Outstanding Options – Weighted Average Exercise Price		Exercisable Options – Number of Exercisable Options		Exercisable Options – Weighted Average Exercise Price
$33.16 to $77.93		175,890		1.99	$	55.91		165,961	$	55.81
$77.94 to $88.22		154,613		2.97		86.13		92,938		86.25
$88.23 to $155.99		179,574		4.06		144.12		36,022		132.49
$156.00 to $197.16		101,824		4.50		180.12		12,157		183.78
Total		611,901		3.27	$	110.10		307,078	$	79.08

The following table summarizes the status of all outstanding options at June 30, 2023, and changes during the three months then ended:


	Number of Options			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value as of June 30, 2023
Options outstanding at April 1, 2023		651,857		$	108.10
Granted		—			—
Exercised		(39,471	)		75.79
Cancelled – forfeited		(444	)		148.51
Cancelled – expired		(41	)		197.16
Ending outstanding		611,901		$	110.10		3.27	$	51,170,280
Ending vested and expected to vest		566,840		$	107.09		3.25	$	48,336,925
Ending exercisable at June 30, 2023		307,078		$	79.08		2.53	$	35,164,265

There were no options granted during the three months ended June 30, 2023. The weighted-average grant-date fair value of options granted during the three months ended June 30, 2022 was $49.97.

Included in the above-noted stock option grants and stock compensation expense are performance-based stock options that vest only upon the Company’s achievement of certain earnings per share targets on a calendar year basis, as determined by the Company’s Board of Directors. These options were valued in the same manner as the time-based options. However, the Company only recognizes stock compensation expense to the extent that the targets are determined to be probable of being achieved, which triggers the vesting of the performance options. The Company recognized $363,000 and $578,000 of stock compensation expense for the three months ended June 30, 2023 and 2022, respectively, for performance-based stock options.