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STOCK BASED COMPENSATION
 3 Months Ended
Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]  
STOCK BASED COMPENSATION

 

8. STOCK BASED COMPENSATION

 

In May 2017, the Company’s shareholders approved its 2017 Stock Incentive Plan (“2017 Plan”) after its 2007 Stock Incentive Plan (“2007 Plan”) had expired in March 2017. The 2017 Plan provides for the grant of non-qualified stock options and incentive stock options to purchase shares of the Company’s common stock and for the grant of restricted and unrestricted shares. The 2017 Plan provides for the issuance of 3,750,000 shares of common stock. All of the Company’s employees and any subsidiary employees (including officers and directors who are also employees), as well as all of the Company’s nonemployee directors and other consultants, advisors and other persons who provide services to the Company are eligible to receive incentive awards under the 2017 Plan. Generally, stock options and restricted stock issued under the 2017 Plan vest over a period of one to four years from the date of grant.

 

The following table summarizes the stock-based compensation expense recorded in the Company’s results of operations during the three months ended March 31, 2023 and 2022 for stock options and restricted stock granted under the Company’s incentive plans (in thousands):

         
  

Three Months Ended

March 31,

 
   2023   2022 
Research and development  $328   $244 
General and administrative   525    429 
Selling and Marketing   74    53 
Total  $927   $726 

 

As of March 31, 2023, there was approximately $9.2 million of total unrecognized compensation expense related to unvested share-based compensation arrangements. This cost is expected to be recognized over a weighted-average period of 2.9 years.

 

The weighted average grant date fair value per share of the options granted under the Company’s 2017 Plan was $4.95 and $10.60 for the three months ended March 31, 2023 and 2022, respectively.

 

The following table summarizes stock option activity during the three months ended March 31, 2023 (in thousands except exercise prices and contractual terms):

                  
   

Number of

Shares

  

Weighted-

Average

Exercise

Prices per Share

  

Weighted-
Average

Remaining

Contractual

Term (In Years)

   Intrinsic
Value		 
Outstanding at January 1, 2023    3,009   $7.07           
Granted    375   $6.56           
Exercised    (10)  $3.90           
Outstanding at March 31, 2023    3,374   $7.02    5.38   $2,430 
Exercisable at March 31, 2023    2,649   $6.49    4.40   $2,121 

 

During the three months ended March 31, 2023, the Company granted options under the 2017 Plan to purchase approximately 375,000 shares of its common stock to its employees. The fair value of these options was approximately $1.9 million at the time of grant.

 

The Company issues restricted stock to employees, directors and consultants and estimates the fair value based on the closing price on the day of grant. The following table summarizes all restricted stock activity during the three months ended March 31, 2023 (in thousands except per share data):  

                 
   

Number of

Shares

    

Weighted-Average

Grant Date Fair Value per Share

  
Outstanding at January 1, 2023     340     $ 10.78  
Granted     297     $ 6.56  
Vested     (55 )   $ 7.62  
Outstanding non-vested shares at March 31, 2023     582     $ 8.93  

 

During the three months ended March 31, 2023, the Company granted approximately 297,000 restricted stock awards under the 2017 Plan to its employees and directors. The fair value of these awards was approximately $2.0 million at the time of grant.

 

On February 23, 2023, the Company’s Board of Directors approved the Atomera Incorporated 2023 Stock Incentive Plan (“2023 Plan”). The 2023 Plan provides for the grant of non-qualified stock options and incentive stock options to purchase shares of the Company’s common stock and for the grant of restricted and unrestricted shares. The 2023 Plan, as amended in April 2023, provides for the issuance of 2,000,000 shares of common stock. All of the Company’s employees and any subsidiary employees (including officers and directors who are also employees), as well as all of the Company’s nonemployee directors and other consultants, advisors and other persons who provide services to the Company will be eligible to receive incentive awards under the 2023 Plan. The 2023 Plan has been submitted to the stockholders for approval at the Company’s 2023 annual meeting of stockholders to be held on May 4, 2023.