STOCK COMPENSATION PLANS

12 Months Ended

Dec. 31, 2022

STOCK COMPENSATION PLANS

STOCK COMPENSATION PLANS

NOTE 10 – STOCK COMPENSATION PLANS

The Company’s 2021 Long Term Incentive Plan (the “Long Term Incentive Plan”), currently provides for the aggregate issuance of up to 1,500,000 shares of common stock. The Long Term Incentive Plan provides for grants of non-statutory options, incentive stock options, restricted stock awards, performance shares, performance units, restricted stock units and other stock-based awards, in order to enhance the ability of ENGlobal to motivate current employees, to attract employees of outstanding ability and to provide for grants to be made to non-employee directors. At December 31, 2022, 1,289,949 shares of common stock are available to be issued pursuant to the Long Term Incentive Plan.

We recognized non-cash stock-based compensation expense related to our Long Term Incentive Plan and the expired Amended and Restated 2009 Equity Incentive Plan of $0.2 million for the year ended December 31, 2022 and $0.3 million for the year ended December 25, 2021.

Restricted Stock Awards – Restricted stock awards granted to non-employee directors are intended to compensate and retain the directors over the one-year service period commencing July 1 of the year of service. These awards generally vest in quarterly installments beginning September 30^th of the year of grant, so long as the grantee continues to serve as a director of the Company as of each vesting date. Restricted stock awards granted to employees generally vest in four equal annual installments on the anniversary date of grant, so long as the grantee remains employed full-time with us as of each vesting date. Restricted stock awards are generally issued as new shares at the time of grant. The grant-date fair value of restricted stock grants is determined using the closing quoted market price on the grant date.

The following is a summary of the status of our restricted stock awards and of changes in restricted stock outstanding for the year ended December 31, 2022:

	Number of unvested restricted shares		Weighted-average grant-date fair value
Outstanding at December 25, 2021		116,631	$	3.07
Granted		114,504		1.31
Vested		133,106		1.98
Forfeited		5,088		4.42
Outstanding at December 31, 2022		92,941	$	2.40

As of December 31, 2022, there was $0.2 million of total unrecognized compensation cost related to unvested restricted stock awards which is expected to be recognized over a weighted-average period of 2 years. During the year ended December 31, 2022, the Company granted the following restricted stock awards:

Date Issued	Issued to	Number of Shares		Market Price		Fair Value
June 9, 2022	Directors (3)		114,504	$	1.31	$	150,000

                During the year ended December 25, 2021, the Company granted the following restricted stock awards:

Date Issued	Issued to	Number of Shares		Market Price		Fair Value
March 9, 2021	Director (1)		5,656	$	4.42	$	25,000
March 9, 2021	Employees (10)		56,557	$	4.42	$	250,000
June 1, 2021	Employee (1)		2,778	$	3.60	$	10,000
August 26, 2021	Directors (3)		75,759	$	1.98	$	150,000