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Stock Based Compensation
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock Based Compensation Stock Based Compensation
On May 13, 2021, the Company's shareholders approved the 2021 Long Term Equity Incentive Plan (the “2021 Plan”) that replaced the 2006 Long Term Equity Incentive Plan (the “2006 Plan”) approved in May 2006 and amended in May 2015. The 2021 Plan allows for grants to employees, officers, non-employee directors, consultants, independent contractors and advisors of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based awards (“stock awards”) up to an aggregate of 441,158 awards. Awards can be granted under the 2021 Plan through the earlier of May 13, 2031, or the date the maximum number of available awards under the 2021 Plan have been granted. No new awards may be granted from the 2006 Plan.
Awards under the 2021 Plan vest over one to three years and shares previously awarded and currently unvested under the 2006 Plan vest over three years. Shares granted under both the 2006 and 2021 Plans vest upon the date of a participant’s death, disability or change in control.
The Company follows the provisions of FASB ASC 718 requiring that compensation cost relating to share-based payment transactions be recognized in the financial statements. The cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity award).
Restricted Stock
The Company grants shares of its common stock to certain directors and officers in the form of unvested stock (“Restricted Stock”). These awards are measured at the fair value of Core Molding Technologies’ common stock on the date of issuance and recognized ratably as compensation expense over the applicable vesting period.
The following summarizes the status of Restricted Stock and changes during the years ended December 31:
202220212020
Number
of
Shares		Wtd. Avg.
Grant Date
Fair Value		Number
of
Shares		Wtd. Avg.
Grant Date
Fair Value		Number
of
Shares		Wtd. Avg.
Grant Date
Fair Value
Unvested - beginning of year459,420$9.79 507,835$6.35 343,919$9.37 
Granted287,48510.39 250,63513.74 292,8864.70 
Vested(230,201)7.87 (262,461)6.89 (107,145)10.21 
Forfeited(13,957)11.28 (36,589)7.66 (21,825)9.86 
Unvested - end of year502,747$10.46 459,420$9.79 507,835$6.35 
At December 31, 2022 and 2021, there was $3,570,000 and $3,029,000, respectively, of total unrecognized compensation expense. That cost is expected to be recognized over the weighted-average period of 1.8 years. Total compensation expense related to restricted stock grants for the years ended December 31, 2022, 2021 and 2020 was $2,284,000, $1,762,000, and $1,254,000, respectively, and is recorded as selling, general and administrative expense.
Tax deficiencies in connection with payment of taxes upon the vesting of restricted stock previously issued to employees for the year ended December 31, 2022, was $79,000. Tax benefits in connection with payment of taxes upon the vesting of restricted stock previously issued to employees for the year ended December 31, 2021 was $305,000. Tax deficiencies in connection with payment of taxes upon the vesting of restricted stock previously issued to employees for the year ended December 31, 2020, was $97,000.
During 2022, 2021 and 2020, employees surrendered 48,285, 7,237 and 4,574 shares, respectfully, of the Company's common stock to satisfy income tax withholding obligations in connection with the vesting of restricted stock.
Stock Appreciation Rights
As part of the Company's 2019 annual grant, Stock Appreciation Rights (SARs) were granted with a grant price of $10. These awards have a contractual term of five years and vest ratably over a period of three years or immediately vest if the recipient is over 65 years of age. These awards are valued using the Black-Scholes option pricing model, and are amortized ratably as compensation expense over a three year period.
A summary of the Company's stock appreciation rights activity for the years ended December 31, is as follows:
202220212020
Number
of
Shares		Wtd. Avg.
Grant Date
Fair Value		Number
of
Shares		Wtd. Avg. Grant Date Fair ValueNumber
of
Shares		Wtd. Avg.
Grant Date
Fair Value
Outstanding - beginning of year177,016 $2.57 180,925 $2.57 222,112 $2.57 
Granted— — — — — — 
Exercised— — — — — — 
Forfeited— — (3,909)2.57 (41,187)2.57 
Outstanding - end of year177,016 $2.57 177,016 $2.57 180,925 $2.57 
Exercisable - end of year177,016 $2.57 124,801 $2.57 73,888 $2.57 
The average remaining contractual term for SARs outstanding at December 31, 2022 is 1.3 years, with $529,000 aggregate intrinsic value. At December 31, 2022, there were no unrecognized compensation expense related to SARs. At December 31, 2021, there was $45,000 of total unrecognized compensation expense related to SARs.
Total compensation cost related to SARs for the years ended December 31, 2022, 2021 and 2020 was $45,000, $127,000 and $101,000 respectively, all of which was recorded to selling, general and administrative expense.