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Stock-Based and Other Long-Term Incentive Compensation | 12 Months Ended
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Dec. 31, 2023
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 the 2019 Equity Incentive Plan for restricted shares/units, stock options and other equity awards which reserved for issuance up to 500,000 shares of common stock in connection with awards. 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, 2023, we had outstanding awards of 133,898 shares under the Equity Incentive Plan that may vest over the next three years. As of December 31, 2023, 405,833 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 vested in full on June 30, 2023. On April 25, 2023, the Compensation Committee awarded 27,840 shares of restricted stock to our Chief Technical Officer that vest ratably over three years, beginning on April 25, 2024. Pursuant to the Retirement Agreement dated May 17, 2022, between the Company and Mr. Taylor, our Interim Chief Executive Officer, on April 25, 2023, the Compensation Committee awarded 58,790 fully vested shares of common stock to Mr. Taylor. On May 9, 2023, the Compensation Committee awarded each of our four independent Board members 9,470 restricted stock units. These restricted stock units vest one year from the date of grant. On June 30, 2023, Stephen C. Taylor was granted restricted stock units for 10,101 and 10,101 shares of common stock that will vest immediately and one year from the date of grant, respectively. On October 8, 2023, the Compensation Committee awarded 6,361 restricted stock units to Brian Tucker, our Chief Operating Officer. These units will vest ratably over three years beginning on October 9, 2024. On October 26, 2023, the compensation committee awarded 4,623 restricted stock units to an independent director. These units vest one year from the date of the grant. Compensation expense related to the restricted shares was approximately $2.0 million and $1.7 million for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023, there was a total of approximately $0.7 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/unit activity as of December 31, 2022 and 2023 and changes during the years then ended are presented below.
| Number of Shares |  | 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 | 126,662 |  |  | $ | 10.21 |  |  | — |  |  | $ | 1,294 |
Vested | (152,134) |  |  | $ | 10.99 |  |  | — |  |  | $ | 1,778 |
Outstanding, December 31, 2022 | 250,847 |  |  | $ | 9.14 |  |  | 1.42 |  | $ | 2,681 |
Granted | 164,640 |  |  | $ | 10.65 |  |  | — |  |  | $ | 1,754 |
Vested | (267,232) |  |  | $ | 9.22 |  |  | — |  |  | $ | 2,683 |
Canceled/Forfeited | (14,357) |  |  | $ | 10.04 |  |  | — |  |  | $ | 158 |
Outstanding, December 31, 2023 | 133,898 |  |  | $ | 10.66 |  |  | 1.57 |  | $ | 1,813 |
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 was paid in cash. 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 were paid 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 were paid in cash upon vesting. The Company accounts for these other long-term incentive awards as liabilities under accrued liabilities on our 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 $0.4 million and $1.0 million respectively for the years ended December 31, 2023 and 2022. As of December 31, 2023 and 2022 respectively there was a total of $0.0 million and $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. 1998 Stock Option Plan Our 1998 Stock Option Plan as amended, 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, 2023, 415,085 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: | 2023 | 2022 |  |  |  |  |  |
Risk free rate | 3.99 | % |  | 2.99 | % |  |  |  |  |  |  |  |
Expected life | 6.5 |  | 2.67 |  |  |  |  |  |  |  |
Expected volatility | 47 | % |  | 54.5 | % |  |  |  |  |  |  |  |
Expected dividend yield | — | % |  | — | % |  |  |  |  |  |  |  |
During the year ended December 31, 2023, and 2022, we made 6,000 and 215,000 stock option grants, respectively. A summary of all option activity as of December 31, 2022 and 2023 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, 2021 | 200,834 |  |  | $ | 21.17 |  |  | 4.83 |  | $ | — |
Granted | 215,000 |  |  | $ | 16.07 |  |  | — |  |  | $ | — |
Canceled/Forfeited | (200,750) |  |  | $ | (18.09) |  |  | — |  |  | $ | — |
Expired | (13,500) |  |  | $ | 13.29 |  |  | — |  |  | $ | — |
Outstanding, December 31, 2022 | 201,584 |  |  | $ | 19.32 |  |  | 3.90 |  | $ | — |
Granted | 6,000 |  |  | $ | 9.80 |  |  | — |  |  | $ | 1 |
Canceled/Forfeited | (39,833) |  |  | $ | 16.33 |  |  | — |  |  | $ | 11 |
Expired | (38,000) |  |  | $ | 16.28 |  |  | — |  |  | $ | — |
Outstanding, December 31, 2023 | 129,751 |  |  | $ | 20.59 |  |  | 4.10 |  | $ | 274 |
Exercisable, December 31, 2023 | 105,416 |  |  | $ | 22.85 |  |  | 3.08 |  | $ | 146 |
The weighted average grant date fair value of options granted during 2023 and 2022 was $5.11 and $4.24 per option respectively. There were no option exercises in either 2023 or 2022. The following table summarizes information about our stock options outstanding at December 31, 2023:
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 |  | 51,667 |  |  | 8.25 |  | $ | 10.77 |  |  | 27,332 |  |  | $ | 10.76 |
$22.01-$26.00 |  | 28,667 |  |  | 1.28 |  | $ | 22.90 |  |  | 28,667 |  |  | $ | 22.90 |
$26.01-$30.00 |  | 19,750 |  |  | 3.13 |  | $ | 28.15 |  |  | 19,750 |  |  | $ | 28.15 |
$30.01-$30.41 |  | 29,667 |  |  | 0.22 |  | $ | 30.41 |  |  | 29,667 |  |  | $ | 30.41 |
|  | 129,751 |  |  | 4.10 |  | $ | 20.59 |  |  | 105,416 |  |  | $ | 22.85 |
The summary of the status of our unvested stock options as of December 31, 2023, and changes during the year then ended is presented below.
Unvested stock options: | Shares |  | Weighted Average Grant Date Fair Value
Unvested at December 31, 2022 | 39,000 |  |  | $ | 10.95 |
Granted | 6,000 |  |  | $ | 9.80 |
Vested | (14,998) |  |  | $ | 10.90 |
Canceled/Forfeited | (5,667) |  |  | $ | 10.58 |
Unvested at December 31, 2023 | 24,335 |  |  | $ | 10.79 |
We recognized stock compensation expense from stock options of $0.1 million and $0.3 million for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023, there was $0.1 million of unamortized compensation cost related to unvested stock options.

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