Share-based Compensation

9 Months Ended

Sep. 30, 2021

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 September 30, 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 September 30, 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 September 30, 2021.

The Company recorded total share-based compensation expense of $0.3 million and $1.2 million for the three and nine months ended September 30, 2021.

Restricted Stock Units

Below is a table summarizing the unvested restricted stock units through September 30, 2021:


			Weighted average
	Units		grant-date fair value
Unvested as of December 31, 2020		105,008	$	11.00
Granted		139,500		11.00
Vested		(64,046)		11.00
Unvested as of September 30, 2021		180,462	$	11.00
Total unrecognized expense remaining	$	856,303
Weighted average years expected to be recognized over		1.1

The fair value of restricted stock units that vested during the three and nine months ended September 30, 2021 was approximately $0.3 million and $0.7 million, respectively.