Note 11 – Share-based Compensation

The Andover National Corporation 2019 Equity Incentive Plan (the "Plan") provides for the issuance of incentive and non-incentive stock options, stock grants and share-based awards. Options and restricted stock units granted generally vest over a period of one to four years and have a maximum term of ten years from the date of grant.

As of March 31, 2021 an aggregate of 1,705,028 shares of common stock were authorized under the Plan, subject to an “evergreen” provision that will automatically increase the maximum number of shares of Common Stock that may be issued under the term of the Plan. As of March 31, 2021, 1,411,095 shares of common stock were available for future grants under the Plan.

The fair value of the Company’s restricted stock and restricted stock unit grants were determined by reference to recent or anticipated cash transactions involving the sale of the Company’s common stock. The fair value of the Company’s common stock was estimated to be $11.00 per share at March 31, 2021.

The Company recorded total share-based compensation expense of $0.4 million and $0.4 million for the three months ended March 31, 2021 and March 31, 2020, respectively.

Restricted Stock Units

Below is a table summarizing the unvested restricted stock units through March 31, 2021:


			Weighted average grant-
	Units		date fair value
Unvested as of December 31, 2020		105,008	$	11.00
Granted		139,500		11.00
Vested		(13,182)	$	11.00
Unvested as of March 31, 2021		231,326	$	11.00
Total unrecognized expense remaining	$	1,603,000
Weighted average years expected to be recognized over		1.1

The fair value of restricted stock units that vested during the three months ended March 31, 2021 was approximately $0.1 million.