Stock-Based Compensation

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

At the 2010 Annual Meeting, shareholders approved the 2010 Equity Incentive Plan (the "2010 Plan"). This reserved 400,000 shares of common stock for issuance in connection with stock options, restricted stock awards and other equity based awards to attract and retain the best available personnel, provide additional incentive to officers, employees and non-employee Directors and promote the success of the Company. Such grants and awards were structured in a manner that did not encourage the recipients to expose the Company to undue or inappropriate risk. Options issued under the 2010 Plan qualified for treatment as incentive stock options for purposes of Section 422 of the Internal Revenue Code. Other compensation under the 2010 Plan qualified as performance-based for purposes of Section 162(m) of the Internal Revenue Code, and satisfied NASDAQ guidelines relating to equity compensation. The 2010 Plan expired on April 28, 2020, leaving 215,513 shares not issued.

At the 2020 Annual Meeting, shareholders approved the 2020 Equity Incentive Plan (the "2020 Plan"). This reserves 400,000 shares of common stock for issuance in connection with stock options, restricted stock awards and other equity based awards to attract and retain the best available personnel, provide additional incentive to officers, employees and non-employee Directors and promote the success of the Company. Such grants and awards will be structured in a manner that does not encourage the recipients to expose the Company to undue or inappropriate risk. Options issued under the 2020 Plan qualify for treatment as incentive stock options for purposes of Section 422 of the Internal Revenue Code. Other compensation under the 2020 Plan will qualify as performance-based for purposes of Section 162(m) of the Internal Revenue Code, and will satisfy NASDAQ guidelines relating to equity compensation.

As of June 30, 2020, 184,487 shares of restricted stock had been granted under the 2010 Plan and 4,250 shares under the 2020 Plan, of which 75,624 shares remain restricted as of June 30, 2020 as detailed in the following table:


Year Granted	Vesting Term (In Years)	Shares	Remaining Term (In Years)
2015	5.0	527	0.1
2016	5.0	10,874	0.6
2017	5.0	7,017	1.6
2018	3.0	5,371	0.6
2018	4.0	2,068	1.5
2018	5.0	6,184	2.5
2019	2.0	1,484	0.6
2019	3.0	16,254	1.6
2020	1.0	4,309	0.8
2020	2.0	694	1.6
2020	3.0	20,842	2.6
		75,624	1.8

The compensation cost related to these nonvested restricted stock grants is $1,957,000 and is recognized over the vesting terms of each grant. In the six months ended June 30, 2020, $312,000 of expense was recognized for these restricted shares, leaving $1,003,000 in unrecognized expense as of June 30, 2020. In the six months ended June 30, 2019, $244,000 of expense was recognized for restricted shares, leaving $921,000 in unrecognized expense as of June 30, 2019.