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Share-based Compensation
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Share-based Compensation
17. Share-based Compensation

On April 11, 2014, INNOVATE’s Board of Directors adopted the INNOVATE Corp. Omnibus Equity Award Plan (the "2014 Plan"), which was originally approved at the annual meeting of stockholders held on June 12, 2014. On April 21, 2017, the Board of Directors, subject to stockholder approval, adopted the Amended and Restated 2014 Omnibus Equity Award Plan (the "Restated 2014 Plan"). The Restated 2014 Plan was approved by INNOVATE's stockholders at the annual meeting of stockholders held on June 14, 2017. Subject to adjustment as provided in the Restated 2014 Plan, the Restated 2014 Plan authorized the issuance of 3,500,000 shares of common stock of INNOVATE, plus any shares that again become available for awards under the 2014 Plan, plus any shares that again become available for awards under the Restated 2014 Plan.

On April 20, 2018, the Board of Directors, subject to stockholder approval, adopted the Second Amended and Restated 2014 Omnibus Equity Award Plan (the "Second A&R 2014 Plan"). The Second A&R 2014 Plan was approved by INNOVATE's stockholders at the annual meeting of stockholders held on June 13, 2018. Subject to adjustment as provided in the Second A&R 2014 Plan, the Second A&R 2014 Plan authorized the issuance of up to 3,500,000 shares of common stock of INNOVATE, plus any shares that again become available for awards under the 2014 Plan or the Restated 2014 Plan. As of December 31, 2022, 1.0 million shares for awards remain available for issuance under Second A&R 2014 Plan.

The Second A&R 2014 Plan provides that no further awards will be granted pursuant to the 2014 Plan or the Restated 2014 Plan. However, awards previously granted under either the 2014 Plan or the Amended 2014 Plan will continue to be subject to and governed by the terms of the 2014 Plan and Amended 2014 Plan, respectively. The Compensation Committee of INNOVATE's Board of Directors administers the 2014 Plan, the Amended 2014 Plan and the Second A&R 2014 Plan and has broad authority to administer, construe and interpret the plans. The Second A&R 2014 Plan provides for the grant of awards of non-qualified stock options, incentive (qualified) stock options, stock appreciation rights, restricted stock awards, restricted stock units, other stock based awards, performance compensation awards (including cash bonus awards) or any combination of the foregoing. The Company typically issues new shares of common stock upon the exercise of stock options, as opposed to using treasury shares.

The Company follows guidance which addresses the accounting for share-based payment transactions whereby an entity receives employee services in exchange for either equity instruments of the enterprise or liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. The guidance generally requires that such transactions be accounted for using a fair-value based method and share-based compensation expense be recorded, based on the grant date fair value, estimated in accordance with the guidance, for all new and unvested stock awards that are ultimately expected to vest as the requisite service is rendered.

Total share-based compensation expense recognized by the Company and its subsidiaries under all equity compensation arrangements was $2.4 million for both the years ended December 31, 2022 and 2021.

All grants are time based and vest either immediately or over a period established at grant, typically with a requisite service period of two to three years for the employee to vest in the stock-based award, subject to discretion by Compensation Committee of the Board of Directors. There are no other substantive conditions for vesting. The Company recognizes compensation expense for equity awards, reduced by actual forfeitures as they are incurred, using the straight-line basis.
Restricted Stock

A summary of INNOVATE’s restricted stock activity is as follows:
SharesWeighted Average Grant Date Fair Value
Unvested - December 31, 2020628,433 $3.93 
Granted593,458 $3.81 
Vested(514,543)$3.89 
Forfeited(151,469)$4.13 
Unvested - December 31, 2021555,879 $3.79 
Granted1,031,611 $2.41 
Vested(400,395)$3.77 
Forfeited(45,289)$3.68 
Unvested - December 31, 20221,141,806 $2.56 

The aggregate vesting date fair value of the restricted stock awards which vested during the years ended December 31, 2022 and 2021 was $0.9 million and $2.0 million, respectively. As of December 31, 2022, the total unrecognized stock-based compensation expense related to unvested restricted stock awards was $2.0 million and is expected to be recognized over the remaining weighted average period of 1.8 years.

Stock Options

A summary of INNOVATE’s stock option activity is as follows:
SharesWeighted Average Exercise Price
Outstanding - December 31, 20204,739,858 $5.13 
Expired(23,999)$5.31 
Outstanding - December 31, 20214,715,859 $5.13 
Granted280,791 $3.25 
Expired(1,500)$4.06 
Outstanding and exercisable - December 31, 20224,995,150 $5.02 
The weighted-average grant-date fair value of the stock options granted during the year ended December 31, 2022 was $1.47. As of December 31, 2022, the intrinsic value and weighted-average remaining life of the Company's outstanding and exercisable stock options were zero and approximately 1.8 years, respectively. The maximum contractual term of the Company's exercisable stock options is approximately 10 years. As of December 31, 2022, there were no unvested stock options and no unrecognized stock-based compensation expenses related to unvested stock options.