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| Stock-based Compensation | Note 11 - Stock-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 stock-based awards. Options and restricted stock units granted generally vest over a period of to four years and have a maximum term of ten years from the date of grant. As of December 31, 2021 an aggregate of 289,577 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 terms of the Plan. As of December 31, 2021, no 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 Company recorded total stock-based compensation expense of$1.1 million and $1.0 million during the years ended December 31, 2021 and 2020, respectively. Of the $1.1 million stock-based compensation expense recorded in 2021, $1.1 million relates to the Restricted Stock Units and $0.0 million relates to the Performance Restricted Stock Units. This is due to the reversal of previously recognized stock-based compensation expense for Jeffrey C. Piermont’s Restricted Stock Units due to forfeiture. Restricted Stock Units Below is a table summarizing the unvested restricted stock units through December 31,2021:
The fair value of restricted stock units that vested during year ended December 31, 2021 and 2020 was approximately $0.7 million and $0.5 million, respectively. Performance Restricted Stock Units On October 5, 2021, the Board granted a total of 225,579 performance restricted stock units (“PSUs”) to certain directors, officers, and advisors of the Company in exchange for the cancellation of 180,460 previously issued and unvested restricted stock units (“RSUs”). The PSUs add a performance vesting condition that will only be satisfied upon the occurrence of a “Liquidity Event” as defined in the PSU Agreement to include the listing of a class of the Company’s equity securities on a national securities exchange or the occurrence of a Change of Control (as defined in the Plan). The PSUs were granted under the Plan. Each PSU represents a contingent right to receive one share of the Company’s Class A Common Stock. In addition to the performance vesting condition described above, the grants are also subject to time-based vesting conditions set forth in the individual PSU agreements. The time-based vesting conditions range from 0 to 3 years. On November 1, 2021, Jeffrey C. Piermont, the Company’s President and Chief Operating Officer, resigned from the Company. In connection with the resignation, Mr. Piermont forfeited each of his outstanding shares of performance restricted stock units (49,481 in total). On March 31, 2022, Milun Patel, the Company’s Chief Financial Officer, was terminated from the Company. In relation to this termination, Mr. Patel forfeited all unvested equity awards on March 31, 2022. Below is a table summarizing the unvested performance restricted stock units through December 31, 2021:
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