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Stock-Based and Other Long-Term Incentive Compensation
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based and Other Long-Term Incentive Compensation Stock-Based and Other Long-Term Incentive Compensation
Restricted Stock

 On June 20, 2019, at our annual meeting of shareholders, our shareholders approved an Equity Incentive Plan for restricted shares/units, stock options and other equity awards. The Equity Incentive Plan allows issuance up to 500,000 shares of common stock. On June 16, 2022, at our annual meeting of shareholders, our shareholders approved an amendment to the Equity Incentive Plan to increase the number of shares available for issuance under the plan by 650,000 shares of common stock. As of December 31, 2022, we had 250,847 shares outstanding under the Equity Incentive Plan that will vest over the next three years. As of December 31, 2022, 570,473 shares were still available for issuance under the Equity Incentive Plan.

On April 26, 2022, 4,212 shares of restricted common stock were awarded to each of our four independent Board members. The restricted stock issued to our directors vests in one year from the date of grant. On August 15, 2022, the Compensation Committee awarded 32,040 shares of restricted common stock to two executive officers that vest ratably over three years, beginning on April 25, 2023. In addition, on August 15, 2022, the Compensation Committee awarded 60,839 shares of restricted common stock to Mr. Stephen Taylor, our Interim Chief Executive Officer. The restricted shares granted to Mr. Taylor will vest in full on June 30, 2023.

Compensation expense related to the restricted shares was approximately $1.7 million and $1.7 million for the years ended December 31, 2022 and 2021, respectively. As of December 31, 2022, there was a total of approximately $1.0 million of unrecognized compensation expense related to the unvested portion of these restricted shares/units.  This expense is expected to be recognized over the next three years.

A summary of all restricted stock activity as of December 31, 2021 and 2022 and changes during the years then ended are presented below.
 Number
 of
Shares		Grant Date Fair ValueWeighted
Average
Remaining
Contractual Life (years)
Aggregate
Intrinsic
Value
(in thousands)
Outstanding, December 31, 2020258,101 $12.87 8.61$2,447 
Granted
156,339 $8.99 — $1,406 
Vested
(134,788)$14.94 — $1,258 
Canceled/Forfeited
(3,333)12.26 — 31 
Outstanding, December 31, 2021276,319 $9.67 1.77$2,893 
Granted
126,662 $10.21 — $1,294 
Vested
(152,134)$10.99 — $1,778 
Canceled/Forfeited
— $— — $— 
Outstanding, December 31, 2022250,847 $9.14 1.42$2,681 


Other Long-Term Incentive Compensation
On April 28, 2020, the Compensation Committee issued a long-term incentive award of $1.1 million to an executive officer that vests in equal, annual tranches over three years. At the time of vesting, each tranche will be payable in cash or common stock at the discretion of the Compensation Committee. 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 three years. On March 18, 2021, we issued a $50,000 award to each of our three independent Board members. On April 1, 2021, we issued a $50,000 award to a newly appointed independent Board member. These awards vest one year from the date of grant and are payable in cash upon vesting. On April 26, 2022, we issued a $50,000 award to each of our four independent Board members. These awards vest one year from the date of grant and are payable in cash upon vesting. 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 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 $1.0 million for the year ended December 31, 2022. As of December 31, 2022 there was a total of $0.7 million of unrecognized compensation expense related to these other long-term incentive awards which is expected to be recognized over the next year.

Stock Option Plan

Our Stock Option Plan, which is stockholder approved, permits the granting of stock options to its employees for up to 1.0 million shares of common stock. We believe that such awards align the interests of our employees with our stockholders. Option awards are generally granted with an exercise price equal to the market price of our stock at the date of grant; those option awards generally vest in equal increments over three years of continuous service and have ten-year contractual terms.  Certain option and share awards provide for accelerated vesting if there is a change in control of the Company (as defined in the Stock Option Plan).  The last date that grants can be made under the Stock Option Plan is February 28, 2026. As of December 31, 2022, 344,253 shares were still available to be granted under the Stock Option Plan.

The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table.  The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.  The expected life of options granted is based on the vesting period and historical exercise and post-vesting employment termination behavior for similar grants.  We use historical data to estimate option exercise and employee termination within the valuation model; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes.
Weighted average Black -Scholes fair value assumption during the year ended December 31, are as follows:2022
Risk free rate2.99 %
Expected life2.67
Expected volatility54.5 %
Expected dividend yield— %

During the year ended December 31, 2022, 215,000 stock option grants were made.
A summary of all option activity as of December 31, 2021 and 2022 and changes during the years then ended are presented below:
 Number
 of
Shares		Weighted Average
Exercise Price		Weighted
Average
Remaining
Contractual Life (years)
Aggregate
Intrinsic
Value
(in thousands)
Outstanding, December 31, 2020161,334 $24.48 3.48$— 
Granted
55,500 $10.58 — — 
Exercised
— — — — 
Canceled/Forfeited
— $— — $— 
Expired
(16,000)$17.81 — — 
Outstanding, December 31, 2021200,834 $21.17 4.83— 
Granted
215,000 $16.07 — — 
Exercised
— — — — 
Canceled/Forfeited
(200,750)$(18.09)— — 
Expired
(13,500)$13.29 — — 
Outstanding, December 31, 2022201,584 $19.32 3.90$— 
Exercisable, December 31, 2022160,084 $21.48 2.55$— 
 
The weighted average grant date fair value of options granted during 2022 was $4.24 per option. We had 55,500 grants of stock options in 2021 with a weighted average grant date fair value of $5.15. There were no option exercises in either 2022 or 2021.

The following table summarizes information about our stock options outstanding at December 31, 2022:
 
Range of Exercise Prices
Options OutstandingOptions Exercisable
Shares
Weighted
Average
Remaining
Contractual
Life (years)
Weighted
Average
Exercise
Price
Shares
Weighted
Average
Exercise
Price
$0.01-$18.00
106,000 5.58$13.30 64,500 $14.78 
$18.01-$22.00
13,000 0.2218.75 13,000 $18.75 
$22.01-$26.00
29,667 2.2822.90 29,667 $22.90 
$26.01-$30.00
20,750 4.1328.15 20,750 $28.15 
$30.01-$34.00
32,167 1.2230.41 32,167 $30.41 
201,584 3.90$19.32 160,084 $21.48 


The summary of the status of our unvested stock options as of December 31, 2022 and changes during the year then ended is presented below.
 
 
 
Unvested stock options:
Shares
Weighted Average
Grant Date Fair Value
Unvested at December 31, 202155,500 $10.58 
Granted215,000 $16.07 
Vested(69,500)14.48 
Canceled/Forfeited (159,500)16.17 
Unvested at December 31, 202241,500 $11.01 
We recognized stock compensation expense from stock options of $255,000 and $728 for the years ended December 31, 2022 and 2021, respectively. As of December 31, 2022, there was $188,000 of unamortized compensation cost related to unvested stock options.