Stock-Based and Other Long-Term Incentive Compensation

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Stock-Based and Other Long-Term Incentive Compensation

Stock Options

A summary of all option activity as of December 31, 2021, and changes during the three months ended March 31, 2022 is presented below.


	Number of Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding, December 31, 2021	200,834	$	21.17	4.83	$	—
Granted	—	—		—	—

Cancelled / Forfeited	(2,500)	10.58		—	5
Expired	(8,500)	14.89		—	—
Outstanding, March 31, 2022	189,834	$	21.59	4.73	$	70
Exercisable, March 31, 2022	136,834	$	25.85	2.79	$	—

The following table summarizes information about our stock options outstanding at March 31, 2022:


Range of Exercise Prices	Options Outstanding				Options Exercisable
	Shares	Weighted Average Remaining Contractual Life (years)	Weighted Average Exercise Price		Shares	Weighted Average Exercise Price
$0.01-18.00	53,000	9.75	$	10.58	—	$	10.58
$18.01-22.00	20,500	0.97	18.75		20,500	18.75
$22.01-26.00	42,167	3.04	22.90		42,167	22.90
$26.01-30.00	30,000	4.88	28.15		30,000	28.15
$30.01-34.00	44,167	1.97	30.41		44,167	30.41
	189,834	4.73	$	21.59	136,834	$	25.85

The summary of the status of our unvested stock options as of December 31, 2021 and changes during the three months ended March 31, 2022 is presented below:



Unvested Stock Options:	Shares	Weighted Average Grant Date Fair Value Per Share
Unvested at December 31, 2021	55,500	$	5.15


Cancelled/Forfeited	(2,500)	5.15
Unvested at March 31, 2022	53,000	$	5.15

As of March 31, 2022, there was $218,643 unrecognized compensation cost related to unvested options. For the three months ended March 31, 2022 there was $21,222 compensation expense for stock options. For the three months ended March 31, 2021, there was no compensation expense for stock options.

Restricted Shares/Units

On March 18, 2021, the Compensation Committee awarded 129,212 shares of restricted common stock to two executive officers that vest ratably over three years, beginning on March 18, 2022. On June 17, 2021, the Compensation Committee awarded 5,000 shares of restricted stock to an executive officer that vests ratably over three years beginning on June 17, 2022. In addition, on March 18, 2021, 5,612 shares of restricted common stock were awarded to each of our three independent Board members. Lastly, on April 1, 2021, 5,291 shares of restricted common stock were awarded to a newly appointed Board member. The restricted stock issued to our directors vests in one year from the date of grant. There were no grants of restricted common stock as of the three months ended March 31, 2022.

Total compensation expense related to these and previously granted restricted stock awards was $0.4 million and $0.5 million for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, there was a total of $1.0 million of unrecognized compensation expense related to these shares/units which is expected to be recognized over the next 1.8 years.

A summary of all restricted stock/units outstanding as of December 31, 2021 and activity during the three months ended March 31, 2022 is presented below:


	Number of Shares	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding, December 31, 2021	276,319	$	9.67	1.77	$	2,893
Granted	—	—			—
Vested	(110,465)	12.75			1,267
Canceled/Forfeited	—	—			—
Outstanding, March 31, 2022	165,854	$	7.62	1.56	$	1,975

Other Long-Term Incentive Compensation

On March 18, 2021, the Compensation Committee issued a long-term incentive award of $1.0 million to an executive officer that vests in equal, annual tranches over 3 years beginning on the anniversary of the grant date. In addition, on March 18, 2021, we issued a $50,000 award to three of our independent members of our Board of Directors as partial payment for their services in 2021. On April 1, 2021, we issued a $50,000 award to a newly appointed independent member of our Board of Directors as partial payment for his services in 2021. These awards vest one year from the date of grant and are payable in cash upon vesting. There were no long-term incentive awards issued to executives of directors during the three months ended March 31, 2022. The Company accounts for these other long-term incentive awards as liabilities under accrued liabilities on our condensed consolidated balance sheet. The vesting of these awards awards is subject to acceleration upon certain events, such as (i) death or disability of the recipient, (ii) certain circumstances in connection with a change of control of the Company, (iii) for executive officers, termination without cause (as defined in the agreement), and (iv) for executive officers, resignation for good reason (as defined). Total compensation expense related to these other long-term incentive awards was approximately $219,575 and $166,000 for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, there was a total of $1.0 million of unrecognized compensation expense related to these other long-term incentive awards which is expected to be recognized over the next 1.7 years.