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STOCK-BASED COMPENSATION | 3 Months Ended
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Mar. 31, 2023
Share-Based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock Incentive Plans We have one long-term equity incentive plan, the RadNet, Inc. Equity Incentive Plan, which we first amended and restated April 20, 2015, again on March 9, 2017 and currently as of April 15, 2021 (the "Restated Plan”). The Restated Plan was most recently approved by our stockholders at our annual stockholders meeting on June 10, 2021. We have reserved for issuance under the Restated Plan 16,500,000 shares of common stock. We can issue options (incentive and nonstatutory), performance based options, stock awards (restricted or unrestricted), stock units, performance based stock units, and stock appreciation rights under the Restated Plan. Options Certain options granted under the Restated Plan to employees are intended to qualify as incentive stock options under existing tax regulations. Stock options generally vest over 3 to 5 years and expire 5 to 10 years from the date of grant. The following summarizes all of our option transactions for the three months ended March 31, 2023:
Outstanding Options Under the 2006 Plan |  | Shares |  | Weighted Average Exercise price Per Common Share |  | Weighted Average Remaining Contractual Life (in years) |  | Aggregate Intrinsic Value
Balance, December 31, 2022 |  | 678,914 |  |  | $ | 15.72 |  |  |  |  |
Granted |  | 261,220 |  |  | 18.64 |  |  |  |  |
Exercised |  | (5,000) |  |  | 10.10 |  |  |  |  |
Balance, March 31, 2023 |  | 935,134 |  |  | 16.57 |  |  | 6.96 |  | $ | 8,840,425 |
Exercisable at March 31, 2023 |  | 672,538 |  |  | 14.70 |  |  | 5.98 |  | 7,568,342 |
Aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between our closing stock price on March 31, 2023 and the exercise price, multiplied by the number of in-the-money options as applicable) that would have been received by the holder had all holders exercised their options on March 31, 2023. As of March 31, 2023, total unrecognized stock-based compensation expense related to non-vested employee awards was $2.5 million, which is expected to be recognized over a weighted average period of approximately 2.11 years. DeepHealth Options During the second quarter of fiscal 2020, in connection with the completion of the DeepHealth acquisition, we granted options to acquire 412,434 shares at a grant date fair value of $16.93 per share unit to DeepHealth employees in replacement of their stock options that were outstanding as of the closing date. As of March 31, 2023, total unrecognized stock based compensation expense related to non-vested DeepHealth options was approximately $0.3 million, which is expected to be recognized over a weighted average period of approximately 0.60 years
Outstanding Options Under the Deep Health Plan |  | Shares |  | Weighted Average Exercise price Per Common Share |  | Weighted Average Remaining Contractual Life (in years) |  | Aggregate Intrinsic Value
Balance December 31, 2022 |  | 116,982 |  |  | $ | — |  |  |  |  |
Exercised |  | (14,473) |  |  | — |  |  |  |  |
Balance, March 31, 2023 |  | 102,509 |  |  | — |  |  | 6.55 |  | $ | 2,565,800 |
Exercisable at March 31, 2023 |  | 77,537 |  |  | — |  |  | 6.55 |  | 1,940,758 |
Options issued in replacement of original DeepHealth options as a result of our acquisition are not included in the share count under the Restated Plan. Restricted Stock Awards ("RSAs") The Restated Plan permits the award of RSAs and the following summarizes all unvested RSA’s activities during the three months ended March 31, 2023:
| RSAs |  | Weighted-Average Remaining Contractual Term (Years) |  | Weighted-Average Fair Value
RSAs unvested at December 31, 2022 | 536,767 |  |  |  |  | $ | 23.84 |
Changes during the period |  |  |  |  |
Granted | 694,324 |  |  |  |  | $ | 19.77 |
Vested | (704,019) |  |  |  |  | $ | 21.18 |
Forfeited or Canceled | (667) |  |  |  |  | $ | 22.80 |
RSAs unvested at March 31, 2023 | 526,405 |  |  | 1.51 |  | $ | 20.77 |
We determine the fair value of all RSAs based on the closing price of our common stock on the award date. Other stock bonus awards The Restated Plan also permits share awards not subject to any future service period. These are valued and expensed based on the closing price of our common stock on the date of award. During the three months ended March 31, 2023, 10,765 shares were issued with a value of $0.2 million. Performance based stock units ("PSUs") In January 2022, we granted certain employees PSUs with a target award of 25,683 shares of our common stock. The PSUs will vest in two equal parts, starting three years from the grant date based on continuous service, with the number of shares earned (0% to 200% of the target award) depending upon the extent to which we achieve a performance condition as determined by the board of directors over the period from January 1, 2022 through December 31, 2022. In January of 2023, based on the performance condition achieved, the board of directors issued 12,843 units with a fair value of $29.44 per unit. In January 2023, the we granted certain employees PSUs with a target award of 60,685 shares of our common stock. The PSUs will vest in two equal parts, starting three years from the grant date based on continuous service, with the number of shares earned (—% to 200% of the target award) depending upon the extent to which we achieve a performance condition as determined by the board of directors over the period from January 1, 2023 through December 31, 2023. Performance based stock options ("PSOs") In January 2022, we granted certain employees PSOs with a potential to option a maximum of 111,925 shares of our common stock. The PSOs will vest in three equal parts, starting three years from the grant date based on continuous service, with the number of shares earned (0 shares to 111,925 shares) depending upon the extent to which we achieve a performance condition as determined the board of directors over the period from January 1, 2022 through December 31, 2022. In January of 2023, based on the performance condition achieved, the board of directors issued 27,981 options with a strike price of $29.44 per share. In January 2023, we granted certain employees PSOs with a potential to option a maximum of 235,227 shares of our common stock. The PSOs will vest in three equal parts, starting three years from the grant date based on continuous service, with the number of shares earned (0 shares to 235,227 shares) depending upon the extent to which we achieve a performance condition as determined the board of directors over the period from January 1, 2023 through December 31, 2023. Long Term Incentive Plan shares ("LTIPs") In addition, we issue stock-based compensation to certain employees in our AI segment in the form of Stock Units and Restricted Stock Awards, subject to certain restrictions. The awards represent a form of long term incentive and are reflective of a general practice within the software industry. The units and shares vest ratably over a two to four year period, conditioned on continued employment through the vesting periods. We determine the fair value of all LTIPs based on the closing price of our common stock on the award date. The following summarizes all unvested LTIPs activities during the three months ended March 31, 2023:
| LTIPs |  | Weighted-Average Remaining Contractual Term (Years) |  | Weighted-Average Fair Value
LTIPs unvested at December 31, 2022 | 169,471 |  |  |  |  | $ | 19.56 |
Changes during the period |  |  |  |  |
Granted | 209,643 |  |  |  |  | $ | 20.03 |
Vested | (48,395) |  |  |  |  | $ | 19.55 |
Forfeited or Canceled | (13,476) |  |  |  |  | $ | 19.72 |
LTIPs unvested at March 31, 2023 | 317,243 |  |  | 3.43 |  | $ | 19.87 |
Restated Plan summary In summary, of the 16,500,000 shares of common stock reserved for issuance under the Restated Plan, at March 31, 2023, there remain approximately 740,000 shares available under the Restated Plan for future issuance.

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