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Note 12 - Stockholders' Equity and Stock-based Compensation
9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Shareholders' Equity and Share-Based Payments [Text Block]

12. STOCKHOLDERS EQUITY AND STOCK-BASED COMPENSATION

 

Stock-based Compensation

 

The Company includes stock compensation expense within general and administrative expenses in the Condensed Consolidated Statements of Operations. During the nine months ended September 30, 2023 and 2022, the Company recognized $1.7 million and $1.7 million of stock compensation expense, respectively.

 

Issuance of Stock-based Awards

 

The Company has a long-term incentive plan (the “Amended and Restated Plan”) which provides for a maximum number of shares of common stock available for issuance of 5,500,000 shares. The plan was amended in 2023 to increase the maximum number of shares from 4,000,000 to 5,500,000, as approved by shareholders at the annual stockholders meeting held August 16, 2023. Awards under the Amended and Restated Plan may be granted to employees, officers and directors of the Company and affiliates, and any other person who provides services to the Company and its affiliates (including independent contractors and consultants of the Company and its subsidiaries). Awards may be granted in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalents, substitute awards, other stock-based awards, cash awards and/or any combination of the foregoing. No participant may receive a grant covering more than 2,000,000 shares of our common stock in any year and a non-employee member of the Board may not be granted more than 100,000 shares in any year.

 

On June 26, 2023, the Company granted 685,437 stock appreciation rights (“SARs”) under the Amended and Restated Plan, with a $10.00 strike price. The SARs 100% vest when the closing price of the Company's common stock averages $10.00 over 10 (ten) consecutive trading days, prior to January 1, 2025. The SARs expire December 31, 2026. Once vested, the SARs may be exercised, whole or in part, prior to their expiration.  The SARs may be paid in cash or shares, as elected by the Company, representing the then closing price of the Company's common stock in excess of the strike price. The Company valued the SARs at $0.1 million as of the date of grant. Expense related to these grants was immaterial for the three and nine months ended September 30, 2023.

 

Issuances of Common Stock

 

During the nine months ended September 30, 2023, and 2022, shares of common stock were issued upon vesting of restricted stock units totaling 153,324 and 695,465, respectively. There were no stock options or stock appreciation rights exercised during the nine months ended September 30, 2023 or 2022.