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StockBased Compensation
 6 Months Ended
Jun. 30, 2024
StockBased Compensation  
Stock-Based Compensation

Note 9 – Stock-Based Compensation

 

We maintain a stock-based compensation program intended to attract, retain and provide incentives for talented employees and directors and align stockholder and employee interests. During the 2024 and 2023 periods, we granted restricted stock units ("RSUs") from the 2017 Equity Compensation Plan, as amended (“2017 ECP”). RSU vesting periods are generally up to three years and/or based upon achieving certain financial targets.

 

 As of June 30, 2024, the total number of authorized shares of our common stock under the 2017 ECP was 24,550,000.

 

Compensation Expense

 

For the six months ended June 30, 2024 and June 30, 2023, we recorded stock-based compensation expense for all equity incentive plans of $714,993 and $935,145, respectively. Total compensation cost not yet recognized at June 30, 2024 was $2,180,386, which will be recognized over the next three years. 

 

The following table summarizes the stock grants outstanding under 2017 ECP for the three months ended June 30, 2024:

 

 

 

Options

Outstanding

 

 

RSUs

Outstanding

 

 

Options and RSUs Exercised

 

 

Available Shares

 

 

Total Awards

Authorized

 

Total

 

 

—

 

 

 

6,960,020

 

 

 

9,930,783

 

 

 

7,659,197

 

 

 

24,550,000

 

 

The fair value of restricted stock units is determined using market value of the common stock on the date of the grant. The fair value of stock options is determined using the Black-Scholes-Merton valuation model. The use of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense and include the expected life of the option, stock price volatility, risk-free interest rate, dividend yield, exercise price, and forfeiture rate. Forfeitures are estimated at the time of valuation and reduce expense ratably over the vesting period. The forfeiture rate, which is estimated at a weighted average of 0% of unvested options outstanding, is adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimate.

 

There were no stock option awards outstanding as of the six months ended June 30, 2024.

 

The following table summarizes the activities for our RSUs for the six months ended June 30, 2024:

 

 

 

RSUs

 

 

 

Number of

Shares

 

 

Weighted Average Grant Date Fair Value

 

Outstanding, beginning of period

 

 

7,010,016

 

 

$0.48

 

Granted

 

 

3,330,000

 

 

$0.41

 

Vested

 

 

(3,296,662)

 

$0.64

 

Cancelled

 

 

(83,334)

 

$0.52

 

Outstanding, end of period

 

 

6,960,020

 

 

$0.37