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Stock Compensation Plans | 6 Months Ended
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Jun. 30, 2023
Share-Based Payment Arrangement [Abstract] |
Stock Compensation Plans | 5) Stock Compensation Plans The Company has three fixed option plans (the “2013 Plan”, the “2014 Director Plan” and the “2022 Equity Incentive Plan”). Stock Options Stock based compensation expense for stock options issued of $142,696 and $220,175 has been recognized for these plans for the three month periods ended June 30, 2023, and 2022, respectively, and $284,883 and $491,922 has been recognized for these plans for the six month periods ended June 30, 2023 and 2022, respectively, and is included in personnel expenses on the condensed consolidated statements of earnings. As of June 30, 2023, the total unrecognized compensation expense related to the options issued was $248,748, which is expected to be recognized over the vesting period. The fair value of each option granted is estimated on the date of grant using the Black Scholes Option Pricing Model. The Company estimates the expected life of the options using the simplified method. Future volatility is estimated based upon the weighted historical volatility of the Company’s Class A common stock over a period equal to the expected life of the options. The risk-free interest rate for the expected life of the options is based upon the Federal Reserve Board’s daily interest rates in effect at the time of the grant. Activity of the stock option plans during the six month period ended June 30, 2023, is summarized as follows: Schedule of Activity of Stock Option Plans
|  | Number of Class A Shares |  |  | Weighted Average Exercise Price (2) |  |  | Number of Class C Shares |  |  | Weighted Average Exercise Price (2) |
Outstanding at January 1, 2023 |  |  | 976,605 |  |  | $ | 4.56 |  |  |  | 1,157,203 |  |  | $ | 5.31 |
Adjustment for the effect of stock dividends |  |  | 38,266 |  |  |  |  |  |  |  | 57,859 |  |  |  |  |
Granted |  |  | 16,000 |  |  |  |  |  |  |  | - |  |  |  |  |
Exercised |  |  | (214,989 | ) |  |  |  |  |  |  | - |  |  |  |  |
Cancelled |  |  | - |  |  |  |  |  |  |  | - |  |  |  |  |
Outstanding at June 30, 2023 |  |  | 815,882 |  |  | $ | 4.75 |  |  |  | 1,215,062 |  |  | $ | 5.31 |
As of June 30, 2023: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Options exercisable |  |  | 764,632 |  |  | $ | 4.64 |  |  |  | 1,067,562 |  |  | $ | 5.18 |
As of June 30, 2023: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available options for future grant |  |  | 171,386 |  |  |  |  |  |  |  | 834,750 |  |  |  |  |
Weighted average contractual term of options outstanding at June 30, 2023 |  |  | 4.87 years |  |  |  |  |  |  |  | 6.41 years |  |  |  |  |
Weighted average contractual term of options exercisable at June 30, 2023 |  |  | 4.56 years |  |  |  |  |  |  |  | 6.14 years |  |  |  |  |
Aggregated intrinsic value of options outstanding at June 30, 2023 (1) |  | $ | 3,018,675 |  |  |  |  |  |  | $ | 3,815,225 |  |  |  |  |
Aggregated intrinsic value of options exercisable at June 30, 2023 (1) |  | $ | 2,910,455 |  |  |  |  |  |  | $ | 3,487,200 |  |  |  |  |
(1) | The Company used a stock price of $8.45 as of June 30, 2023 to derive intrinsic value.
(2) | Adjusted for the effect of annual stock dividends.
SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements June 30, 2023 (Unaudited) 5) Stock Compensation Plans (Continued) Activity of the stock option plans during the six month period ended June 30, 2022, is summarized as follows:
|  | Number of Class A Shares |  |  | Weighted Average Exercise Price (2) |  |  | Number of Class C Shares |  |  | Weighted Average Exercise Price (2) |
Outstanding at January 1, 2022 |  |  | 1,024,351 |  |  | $ | 4.38 |  |  |  | 821,146 |  |  | $ | 5.26 |
Adjustment for the effect of stock dividends |  |  | 47,780 |  |  |  |  |  |  |  | 41,057 |  |  |  |  |
Granted |  |  | 4,000 |  |  |  |  |  |  |  | - |  |  |  |  |
Exercised |  |  | (71,330 | ) |  |  |  |  |  |  | - |  |  |  |  |
Cancelled |  |  | (1,591 | ) |  |  |  |  |  |  | - |  |  |  |  |
Outstanding at June 30, 2022 |  |  | 1,003,210 |  |  | $ | 4.58 |  |  |  | 862,203 |  |  | $ | 5.26 |
As of June 30, 2022: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Options exercisable |  |  | 955,460 |  |  | $ | 4.40 |  |  |  | 747,203 |  |  | $ | 4.78 |
As of June 30, 2022: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available options for future grant |  |  | 239,795 |  |  |  |  |  |  |  | 17,523 |  |  |  |  |
Weighted average contractual term of options outstanding at June 30, 2022 |  |  | 4.32 years |  |  |  |  |  |  |  | 6.75 years |  |  |  |  |
Weighted average contractual term of options exercisable at June 30, 2022 |  |  | 4.06 years |  |  |  |  |  |  |  | 6.50 years |  |  |  |  |
Aggregated intrinsic value of options outstanding at June 30, 2022 (1) |  | $ | 3,891,873 |  |  |  |  |  |  | $ | 2,758,643 |  |  |  |  |
Aggregated intrinsic value of options exercisable at June 30, 2022 (1) |  | $ | 3,878,980 |  |  |  |  |  |  | $ | 2,748,093 |  |  |  |  |
(1) | The Company used a stock price of $8.46 as of June 30, 2022, which was the closing price of the Company’s Class A shares on Nasdaq for that day, to derive intrinsic value.
(2) | Adjusted for the effect of annual stock dividends.
The total intrinsic value (which is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date) of stock options exercised during the six month periods ended June 30, 2023 and 2022 was $387,561 and $521,527, respectively. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements June 30, 2023 (Unaudited) 5) Stock Compensation Plans (Continued) Restricted Stock Units (“RSUs”) Stock based compensation expense for RSUs issued of nil has been recognized under these plans for the three month periods ended June 30, 2023 and 2022, respectively, and of $742 and nil has been recognized under these plans for the six month periods ended June 30, 2023 and 2022, respectively, and is isncluded in personnel expenses on the condensed consolidated statements of earnings. As of June 30, 2023, the total unrecognized compensation expense related to the RSUs issued was nil. The fair value of each RSU granted is determined based on the Company’s stock price on the date of grant. Prior to December 2022, the Company did not grant any RSUs. Activity of the RSUs during the six month period ended June 30, 2023 is summarized as follows: Schedule of Activity Restricted Stock Units
|  | Number of Class A Shares |  |  | Weighted Average Grant Date Fair Value |
Non-vested at January 1, 2023 |  |  | 1,620 |  |  | $ | 6.48 |
Granted |  |  | - |  |  |  |  |
Vested |  |  | (405 | ) |  |  |  |
Non-vested at June 30, 2023 |  |  | 1,215 |  |  | $ | 6.48 |
Available RSUs for future grant |  | $ | 18,380 |  |  |  |  |
Aggregated intrinsic value of RSUs outstanding at June 30, 2023 (1) |  | $ | 2,394 |  |  |  |  |
(1) | The Company used a stock price of $8.45 as of June 30, 2023 to derive intrinsic value.
SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements June 30, 2023 (Unaudited)

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