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Employee Stock Compensation Plans
 12 Months Ended
Dec. 31, 2022
Employee Stock Compensation Plans  
Employee Stock Compensation Plans

10. Employee Stock Compensation Plans:

 

On June 18, 2013, Solitario’s shareholders approved the Solitario Exploration & Royalty Corp. Omnibus Stock Incentive Plan (the “2013 Plan”).  Under the terms of the 2013 Plan, as amended, a total of 5,750,000 shares of Solitario common stock are reserved for awards to directors, officers, employees and consultants.  Awards granted under the 2013 Plan may take the form of stock options, stock appreciation rights, restricted stock, and restricted stock units.  The terms and conditions of the awards are pursuant to the 2013 Plan and are granted by the Board of Directors or a committee appointed by the Board of Directors.

 

a.) 2013 Plan stock option grants

 

The following table shows the grant date fair value of Solitario’s awards during 2022 and 2021 pursuant to the 2013 Plan: 

 

Grant Date

 

9/8/22 (1)

 

 

5/5/21 (1)

 

 

6/10/21 (1)

 

Option – grant date price

 

$0.60

 

 

$0.67

 

 

$0.69

 

Options granted

 

 

2,360,000

 

 

 

90,000

 

 

 

50,000

 

Expected life years

 

 

5.0

 

 

 

5.0

 

 

 

5.0

 

Expected volatility

 

 

73%

 

 

76%

 

 

76%

Risk free interest rate

 

 

3.4%

 

 

0.9%

 

 

0.9%

Weighted average fair value

 

$0.37

 

 

$0.41

 

 

$0.41

 

Grant date fair value

 

$876,000

 

 

$37,000

 

 

$20,000

 

(1) Option grants have a five-year term, and vest 25% on date of grant and 25% on each of the next three anniversary dates.

b.) Stock option activity

 

During 2022 and 2021, options for 114,250 and 185,000, respectively, shares of common stock were exercised for proceeds of $30,000 and $83,000 respectively.  The following table summarizes the activity for stock options outstanding under the 2013 Plan for the years ended December 31, 2022 and 2021:

 

 

 

2022

 

 

2021

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

Average

 

 

Aggregate

 

 

 

 

Average

 

 

Aggregate

 

 

 

RSUs/

 

 

Exercise

 

 

Intrinsic

 

 

RSUs/

 

 

Exercise

 

 

Intrinsic

 

 

 

Options

 

 

Price

 

 

Value (1)

 

 

Options

 

 

Price

 

 

Value (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, beginning of year

 

 

5,513,000

 

 

$0.49

 

 

 

 

 

 

5,558,000

 

 

$0.58

 

 

 

 

Granted

 

 

2,360,000

 

 

$0.60

 

 

 

 

 

 

140,000

 

 

$0.67

 

 

 

 

Exercised

 

 

(114,250)

 

$0.26

 

 

 

 

 

 

(185,000)

 

$0.45

 

 

 

 

Expired

 

 

(2,360,000)

 

$0.77

 

 

 

 

 

 

-

 

 

 

-

 

 

 

 

Forfeited

 

 

(8,750)

 

$0.20

 

 

 

 

 

 

-

 

 

 

-

 

 

 

 

Outstanding, end of year

 

 

5,390,000

 

 

$0.42

 

 

$1,034,000

 

 

 

5,513,000

 

 

$0.49

 

 

$718,000

 

Exercisable, end of year

 

 

3,227,500

 

 

$0.34

 

 

$899,000

 

 

 

4,718,000

 

 

$0.53

 

 

$506,000

 

(1)  Intrinsic value based upon December 31, 2022 and 2021 price of a share of Solitario common stock as quoted on the NYSE American exchange of $0.62 and $0.50, respectively, per share.

 

During the years ended December 31, 2022 and 2021, Solitario recorded $338,000 and $124,000, respectively, of stock option expense under the 2013 Plan for the amortization of the grant date fair value of each of its outstanding options with a credit to additional paid-in-capital.  At December 31, 2022, the total unrecognized stock option compensation cost related to non-vested options is $618,000 and is expected to be recognized over a weighted average period of 31 months.