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STOCK-BASED COMPENSATION | 12 Months Ended
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Dec. 31, 2021
Share-based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | 13. STOCK-BASED COMPENSATION On December 2, 2009, the Company adopted the 2009 Equity Incentive Plan (the “2009 Plan”) for the purpose of issuing incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended, non-qualified stock options, restricted stock, stock appreciation rights, performance unit awards and stock bonus awards to employees, directors, consultants and other service providers. A total of 320,000 shares of common stock are reserved for issuance under the 2009 Plan. Options may be granted under the 2009 Plan on terms and at prices as determined by the board of directors or by the plan administrators appointed by the board of directors. On May 11, 2011, the board of directors of the Company adopted the Pioneer Power Solutions, Inc. 2011 Long-Term Incentive Plan (the “2011 Plan”) which was subsequently approved by stockholders of the Company on May 31, 2011. The 2011 Plan replaces and supersedes the 2009 Plan. The Company’s outside directors and employees, including the Company’s principal executive officer, principal financial officer and other named executive officers, and certain contractors are all eligible to participate in the 2011 Plan. The 2011 Plan allows for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalent rights, and other awards, which may be granted singly, in combination, or in tandem, and upon such terms as are determined by the Board or a committee of the Board that is designated to administer the Plan. Subject to certain adjustments, the maximum number of shares of the Company’s common stock that may be delivered pursuant to awards under the 2011 Plan is 700,000 shares. As of December 31, 2021, there were no shares available for future grants under the Company’s 2011 Long-Term Incentive Plan. The Company’s 2011 Long-Term Incentive Plan expired during the second quarter of 2021. On October 13, 2021, our board of directors adopted the 2021 Long-Term Incentive Plan (the “2021 Plan”), subject to stockholder approval, which was obtained on November 11, 2021. Our outside directors and our employees, including the principal executive officer, principal financial officer and other named executive officers, and certain contractors are all eligible to participate in the 2021 Plan. The 2021 Plan allows for the granting of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalent rights, and other awards, which may be granted singly, in combination, or in tandem, and upon such terms as are determined by the board or a committee of the board that is designated to administer the 2021 Plan. Subject to certain adjustments, the maximum number of shares of the Company’s common stock that may be delivered pursuant to awards under the 2021 Plan is 900,000 shares. As of December 31, 2021, there were 900,000 shares available for future grants under the Company’s 2021 Plan. The 2021 Plan was initially administered by our board of directors, but it has been administered by the compensation committee following the creation of such committee in the first quarter of 2022. Stock-based compensation expense recorded for the year ended December 31, 2021 and 2020 was approximately $186 and $3, respectively. All of the stock-based compensation expense is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. At December 31, 2021, the Company had total stock-based compensation expense remaining to be recognized in the consolidated statements of operations of approximately $77. The fair value of the stock options granted was measured using the Black-Scholes valuation model with the following assumptions:
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |
Expected volatility |  |  | 31.1 | % |  |  | 31.1 | %
Expected life in years |  |  | 5.5 |  |  |  | 5.5 |
Risk-free interest rate |  |  | 2.1 | % |  |  | 0.5 | %
A summary of stock option activity for the years ended December 31, 2021 and 2020, and changes during the years then ended is presented below:
|  | Stock Options |  |  | Weighted average exercise price |  |  | Weighted average remaining contractual term |  |  | Aggregate intrinsic value |
Outstanding as of January 1, 2020 |  |  | 379,800 |  |  | $ | 7.54 |  |  |  | 6.10 |  |  | $ | — |
Granted |  |  | 70,000 |  |  |  | 1.68 |  |  |  | — |  |  |  | — |
Exercised |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |
Forfeited |  |  | (9,400 | ) |  |  | 8.55 |  |  |  | — |  |  |  |  |
Outstanding as of January 1, 2021 |  |  | 440,400 |  |  | $ | 6.58 |  |  |  | 5.80 |  |  | $ | 155 |
Granted |  |  | 236,667 |  |  |  | 3.31 |  |  |  |  |  |  |  |  |
Exercised |  |  | (26,000 | ) |  |  | 1.10 |  |  |  |  |  |  |  |  |
Forfeited |  |  | (3,400 | ) |  |  | 12.00 |  |  |  |  |  |  |  |  |
Outstanding as of December 31, 2021 |  |  | 647,667 |  |  | $ | 5.53 |  |  |  | 6.40 |  |  | $ | 1,442 |
Exercisable as of December 31, 2021 |  |  | 411,000 |  |  | $ | 6.81 |  |  |  | 4.80 |  |  | $ | 451 |
Intrinsic value is the difference between the market value of the stock at December 31, 2021 and the exercise price which is aggregated for all options outstanding and exercisable. A summary of the weighted-average grant-date fair value of options, total intrinsic value of options exercised, and cash receipts from options exercised is shown below:
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |
Weighted-average fair value of options granted (per share) |  | $ | 0.97 |  |  | $ | 0.49 |
Intrinsic value gain of options exercised |  |  | 137 |  |  |  | — |
Cash receipts from exercise of options |  |  | 58 |  |  |  | — |

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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