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STOCKHOLDERS’ EQUITY
 6 Months Ended
Jun. 30, 2022
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

9. STOCKHOLDERS’ EQUITY

 

Common Stock

 

The Company had 9,644,545 and 9,640,545 shares of common stock, $0.001 par value per share, outstanding as of June 30, 2022 and December 31, 2021, respectively.

 

Stock-Based Compensation

 

A summary of stock option activity during the six months ended June 30, 2022 is as follows:

 

   Stock
Options		   Weighted average
exercise price		   Weighted
average remaining
contractual term		   Aggregate
intrinsic value		 
Outstanding as of January 1, 2022   647,667   $5.53           
Granted   27,000    3.17           
Exercised   (4,000)   4.11           
Outstanding as of June 30, 2022   670,667   $5.45    6.10   $60 
Exercisable as of June 30, 2022   643,667   $5.54    6.00   $60 

 

On April 25, 2022, the Company awarded 375,000 shares of restricted stock units (“RSU”) to an employee with the following vesting terms: (i) 125,000 units on May 1, 2022, which are included in the calculation of basic EPS as of the vesting date, (ii) an additional 125,000 units on May 1, 2023, and (iii) the remaining 125,000 units on May 1, 2024, provided that the employee is employed by the Company or a subsidiary of the Company on each such vesting date. The vested RSUs will be converted into shares of the Company’s common stock no later than March 15 of the calendar year following the calendar year in which such RSUs vested. The fair value of the RSU award at the date of grant was $1.6 million.

 

A summary of RSU activity during the six months ended June 30, 2022, is as follows:

 

   Number of units   Weighted-average grant-date
fair value		 
Unvested restricted stock units as of January 1, 2022   —   $— 
Units granted   375,000    1,631 
Units vested   (125,000)   (544)
Units forfeited   —    — 
Unvested restricted stock units as of June 30, 2022   250,000   $1,087 

 

As of June 30, 2022, there were 498,000 shares available for future grants under the Company’s 2021 Long-Term Incentive Plan.

 

Stock-based compensation expense recorded for the three and six months ended June 30, 2022 was approximately $658 and $716, respectively. Stock-based compensation expense recorded for the three and six months ended June 30, 2021 was approximately $38 and $71, respectively. All of the stock-based compensation expense is included in selling, general and administrative expenses in the accompanying interim consolidated statements of operations. At June 30, 2022, there was approximately $1.0 million of stock-based compensation expense remaining to be recognized in the interim consolidated statements of operations over a weighted average remaining period of 1.8 years.