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Stock Compensation Plans | 12 Months Ended
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Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Stock Compensation Plans | 13) Stock Compensation Plans The Company has equity incentive plans (the “2013 Plan”, the “2014 Director Plan” and the “2022 Plan”). Stock Options Stock based compensation expense for stock options issued of $601,058 and $929,321 has been recognized under these plans for 2023 and 2022, respectively, and is included in personnel expenses on the consolidated statements of earnings. As of December 31, 2023, the total unrecognized compensation expense related to the stock options issued was $677,948, which is expected to be recognized over the remaining vesting period. The fair value of each stock 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. The following table summarizes the assumptions used in estimating the fair value of each stock option granted along with the weighted-average fair value of the stock options granted. Schedule of Assumptions Used
|  |  |  |  |  |  | Assumptions |
Grant Date |  | Plan |  | Weighted-Average Fair Value of Each Option |  |  | Expected Dividend Yield (1) |  |  | Underlying stock FMV |  |  | Weighted-Average Volatility |  |  | Weighted-Average Risk-Free Interest Rate |  |  | Weighted-Average Expected Life (years) |
December 1, 2023 |  | All Plans |  | $ | 1.88 |  |  |  | 5 | % |  | $ | 7.99 |  |  |  | 36.76 | % |  |  | 4.14 | % |  |  | 4.9 |
January 30, 2023 |  | All Plans |  | $ | 1.65 |  |  |  | 5 | % |  | $ | 7.10 |  |  |  | 36.73 | % |  |  | 3.64 | % |  |  | 5.31 |
January 18, 2023 |  | All Plans |  | $ | 1.70 |  |  |  | 5 | % |  | $ | 7.37 |  |  |  | 36.79 | % |  |  | 3.40 | % |  |  | 5.31 |
December 2, 2022 |  | All Plans |  | $ | 1.48 |  |  |  | 5 | % |  | $ | 6.48 |  |  |  | 37.03 | % |  |  | 3.69 | % |  |  | 4.88 |
(1) |  | Stock dividend
SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2023 and 2022 13) Stock Compensation Plans (Continued) Activity of the stock option plans is summarized as follows: Schedule of Activity of Stock Option Plans
|  | Number of Class A Shares |  |  | Weighted Average Exercise Price |  |  | Number of Class C Shares |  |  | Weighted Average Exercise Price |
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 |  |  | 82,500 |  |  |  |  |  |  |  | 295,000 |  |  |  |  |
Exercised |  |  | (176,435 | ) |  |  |  |  |  |  | - |  |  |  |  |
Cancelled |  |  | (1,591 | ) |  |  |  |  |  |  | - |  |  |  |  |
Outstanding at December 31, 2022 |  |  | 976,605 |  |  | $ | 4.56 |  |  |  | 1,157,203 |  |  | $ | 5.31 |
Adjustment for the effect of stock dividends |  |  | 38,266 |  |  |  |  |  |  |  | 57,859 |  |  |  |  |
Granted |  |  | 106,500 |  |  |  |  |  |  |  | 305,000 |  |  |  |  |
Exercised |  |  | (286,965 | ) |  |  |  |  |  |  | - |  |  |  |  |
Cancelled |  |  | (836 | ) |  |  |  |  |  |  | - |  |  |  |  |
Outstanding at December 31, 2023 |  |  | 833,570 |  |  | $ | 5.22 |  |  |  | 1,520,062 |  |  | $ | 5.86 |
Exercisable at end of year |  |  | 739,070 |  |  | $ | 4.87 |  |  |  | 1,215,062 |  |  | $ | 5.31 |
Available options for future grant |  |  | 92,820 |  |  |  |  |  |  |  | 529,750 |  |  |  |  |
Weighted average contractual term of options outstanding at December 31, 2023 |  |  | 5.25 years |  |  |  |  |  |  |  | 6.50 years |  |  |  |  |
Weighted average contractual term of options exercisable at December 31, 2023 |  |  | 4.66 years |  |  |  |  |  |  |  | 5.90 years |  |  |  |  |
Aggregated intrinsic value of options outstanding at December 31, 2023 (1) |  | $ | 3,149,704 |  |  |  |  |  |  | $ | 4,765,559 |  |  |  |  |
Aggregated intrinsic value of options exercisable at December 31, 2023 (1) |  | $ | 3,049,987 |  |  |  |  |  |  | $ | 4,483,509 |  |  |  |  |
(1) |  | The Company used a stock price of $9.00 as of December 31, 2023 to derive intrinsic value.
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 2023 and 2022 was $657,354 and $619,064, respectively. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2023 and 2022 13) Stock Compensation Plans (Continued) Restricted Stock Units (“RSUs”) Stock based compensation expense for RSUs issued of $304 and $371 has been recognized under these plans for the 2023 and 2022, respectively, and is included in personnel expenses on the consolidated statements of earnings. As of December 31, 2023, the total unrecognized compensation expense related to the RSUs issued was $3,263, which is expected to be recognized over the remaining vesting period. Activity of the RSUs is summarized as follows: Schedule of Activity Restricted Stock Units
|  | Number of Class A Shares |  |  | Weighted Average Grant Date Fair Value |
Non-vested at December 31, 2022 |  |  | 1,620 |  |  | $ | 6.48 |
Granted |  |  | 1,840 |  |  |  |  |
Vested |  |  | (1,215 | ) |  |  |  |
Non-vested at December 31, 2023 |  |  | 2,245 |  |  | $ | 7.72 |
Available RSUs for future grant |  |  | 16,540 |  |  |  |  |
SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2023 and 2022

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