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STOCK COMPENSATION PLAN | 6 Months Ended
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Jun. 30, 2022
STOCK COMPENSATION PLAN |
STOCK COMPENSATION PLAN | NOTE 9 — STOCK COMPENSATION PLAN Equity Incentive Plan At June 30, 2022, the Company maintained three stock compensation plans, the 2022 Equity Incentive Plan (the “2022 EIP”), the 2019 Equity Incentive Plan (the “2019 EIP”) and the 2009 Equity Incentive Plan (the “2009 EIP”). The 2019 EIP expired on May 31, 2022 but has outstanding restricted stock awards and PRSUs subject to vesting schedules. The 2009 EIP has also expired but has outstanding stock options that may still be exercised. The 2022 EIP was approved on May 31, 2022 by stockholders of the Company. Under the 2022 EIP, the maximum number of shares of stock that may be delivered to participants in the form of restricted stock, restricted stock units and stock options, including ISOs and non-qualified stock options, is 358,000, subject to adjustment as set forth in the 2022 EIP, plus any awards that are forfeited under the 2019 EIP after March 15, 2022. Stock Options Under the terms of the 2022 EIP, a stock option cannot have an exercise price that is less than 100% of the fair market value of the shares covered by the stock option on the date of grant. In the case of an ISO granted to a 10% stockholder, the exercise price shall not be less than 110% of the fair market value of the shares covered by the stock option on the date of grant. In no event shall the exercise period exceed ten years from the date of grant of the option, except, in the case of an ISO granted to a 10% stockholder, the exercise period shall not exceed five years from the date of grant. The 2022 EIP contains a double trigger change in control feature, providing for an acceleration of vesting upon an involuntary termination of employment simultaneous with or following a change in control. The fair value of each stock option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. Expected volatilities based on historical volatilities of the Company’s common stock are not significant. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. ​ A summary of the status of the Company’s stock options and the changes during the year is presented below: ​
​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Six months ended
​ | ​ | June 30, 2022
​ | ​ | ​ | ​ | Weighted
​ |  | Number of |  | Average
​ | ​ | Options | ​ | Exercise Price
​ | ​ | ​ | ​ | ​ | ​
Outstanding, beginning of period | ​ | 231,000 | ​ | $ | 18.00
Granted | ​ | — | ​ | ​ | —
Exercised | ​ | — | ​ | ​ | —
Cancelled/forfeited | ​ | — | ​ | ​ | —
Outstanding, end of period | ​ | 231,000 | ​ | $ | 18.00
Options vested and exercisable at end of period | ​ | 231,000 | ​ | $ | 18.00
​ | ​ | ​ | ​ | ​ | ​
Weighted average remaining contractual life (years) | ​ | ​ | ​ | ​ | 1.88
​ There was no unrecognized compensation cost related to stock options at June 30, 2022 or December 31, 2021. There was no compensation cost related to stock options during the six months ended June 30, 2022 or 2021. The following table summarizes information about stock options outstanding at June 30, 2022: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Options Outstanding
​ | ​ | ​ | ​ | Weighted | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Number | ​ | Average | ​ | Weighted | ​ | Weighted
Range of Average | ​ | Outstanding at | ​ | Remaining | ​ | Average | ​ | Average
Exercise Prices |  | June 30, 2022 |  | Contractual Life |  | Exercise Price | ​ | Intrinsic Value
$10 – 30 | ​ | 231,000 | ​ | 1.88 | ​ | $ | 18.00 | ​ | $ | 83.77
​ Restricted Stock Awards and Restricted Stock Units The Company issued restricted stock awards and restricted stock units under the 2019 EIP and the 2009 EIP (collectively, “restricted stock grants”) to certain key personnel. Each restricted stock grant vests based on the vesting schedule outlined in the restricted stock grant agreement. Restricted stock grants are subject to forfeiture if the holder is not employed by the Company on the vesting date. In the first quarter of 2022 and 2021, 83,151 and 78,582 restricted stock grants were issued to certain key personnel, respectively. One-third of these shares vest each year for three years beginning on March 1, 2023 and March 1, 2022, respectively. Total compensation cost that has been charged against income for restricted stock grants was $1.3 million and $811,000 for the three months ended June 30, 2022 and 2021, respectively. Total compensation cost that has been charged against income for restricted stock grants was $2.0 million and $1.3 million for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, there was $8.6 million of total unrecognized compensation expense related to the restricted stock awards. The cost is expected to be recognized over a weighted-average period of 2.44 years. In January 2022, 11,126 restricted shares were granted to members of the Board of Directors. These shares vest in January 2023. In January 2019, 38,900 restricted shares were granted to members of the Board of Directors in lieu of retainer fees for three years of service. Total expense for these awards was $297,000 and $90,000 for the three months ended June 30, 2022 and 2021, respectively. Total expense for these awards was $595,000 and $200,000 for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022 total unrecognized expense for these awards was $595,000. The following table summarizes the changes in the Company’s restricted stock grants: ​
​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Six months ended
​ | ​ | June 30, 2022
​ | ​ | ​ | ​ | Weighted
​ | ​ | ​ | ​ | Average
​ | ​ | Number of | ​ | Grant Date
​ |  | Shares |  | Fair Value
Outstanding, beginning of period | ​ | 90,999 | ​ | $ | 47.35
Granted | ​ | 83,151 | ​ | ​ | 102.49
Forfeited | ​ | (200) | ​ | ​ | 80.34
Vested | ​ | (29,818) | ​ | ​ | 44.47
Outstanding at end of period | ​ | 144,132 | ​ | $ | 79.70
​ Performance-Based Stock Units During the second quarter of 2021, the Company established a long-term incentive award program under the 2019 EIP. Under the program, 90,000 PRSUs were awarded. During the second quarter of 2022, 20,800 PRSUs were forfeited and reissued pursuant to the 2022 EIP. The weighted average service inception date fair value of the outstanding awarded shares was $6.0 million. At the beginning of 2022, 30,000 PRSUs were vested as all performance criteria were met in fiscal year 2021. The remaining PRSUs are scheduled to vest in February 2023 and February 2024, provided certain performance criteria are met in fiscal years 2022 and 2023. All vested shares will not be delivered until the first quarter of 2024. Total compensation cost that has been charged against income for these PRSUs was $478,000 and $951,000 for the three and six months ended June 30, 2022, respectively. During the first quarter of 2018, the Company established a long-term incentive award program under the 2009 Plan. Under the program, 90,000 PRSUs were awarded. For each award, the PRSUs were eligible to be earned over a three-year performance period based on personal performance and the Company’s relative performance, in each case, as compared to certain measurement goals that were established at the onset of the performance period. These 90,000 PRSUs were earned at the end of the three-year period and vested in the first quarter of 2021.

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