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STOCK-BASED COMPENSATION PLANS

9 Months Ended

Sep. 30, 2024

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS

(10) STOCK-BASED COMPENSATION PLANS

In June 2017, our stockholders approved the 2017 Stock Incentive Plan (the “2017 Stock Plan”) with a maximum of 5,500,000 shares reserved for issuance. Awards permitted under the 2017 Stock Plan include: Stock Options and Restricted Stock. Awards issued under the 2017 Stock Plan are at the discretion of the Board of Directors. As applicable, awards are granted with an exercise price equal to the closing price of our common stock on the date of grant and generally vest over four years. Restricted Stock Awards are issued to the recipient upon grant and are not included in outstanding shares until such vesting and issuance occurs.

During both the three and nine months ended September 30, 2024 and 2023 no stock option awards were granted under the 2017 Stock Plan. At September 30, 2024, the Company had 0.3 million stock options outstanding and 0.3 million exercisable under the following plans:




		Outstanding Number of Options		Exercisable Number of Options
		(in thousands)		(in thousands)
Plan Category
2005 Stock Option Plan		1		1
2017 Stock Option Plan		338		338
Total		339		339

During the three and nine months ended September 30, 2024, 28,000 and 229,000 shares of restricted stock were granted under the 2017 Stock Plan, respectively. During the three and nine months ended September 30, 2023, 86,000 and 223,000 shares of restricted

stock were granted to the Board of Directors and management under the 2017 Stock Plan, respectively. The fair market value of restricted shares for share-based compensation expensing is equal to the closing price of our common stock on the date of grant. The vesting on restricted stock awards typically occur quarterly over three years for the Board of Directors and quarterly or annually over two to four years for management.

The following summarizes stock-based compensation expenses recorded in the condensed consolidated statements of income (in thousands):


		For the Three Months Ended September 30,						For the Nine Months Ended September 30,
		2024			2023			2024			2023
Cost of Revenue		$	10		$	10		$	27		$	26
Sales and marketing expense			125			53			492			182
General, and administrative			635			591			1,826			1,413
Total stock-based compensation expense		$	770		$	654		$	2,345		$	1,621

The Company did not receive any proceeds related to option exercised during the three months ended September 30, 2024 and received proceeds of $0.1 million related to option exercises during the nine months ended September 30, 2024. The Company received proceeds of $0.1 million related to option exercises during the three and nine months ended September 30, 2023. No stock option awards were granted by the Company during either the three or nine months ended September 30, 2024 and 2023.

A summary of stock option activity under all equity compensation plans for the nine months ended September 30, 2024, is presented below:


							Weighted-
				Weighted-			Average		Aggregate
		Number of		Average			Remaining		Intrinsic
		Shares		Exercise			Contractual		Value
		(in thousands)		Price			Term (Years)		(in thousands)
Outstanding at December 31, 2023		349		$	1.82		4.12		$	3,163
Granted		—			—		—			—
Forfeited		(3)			3.14		—			—
Exercised		(7)			2.46		—			—
Outstanding and exercisable at September 30, 2024		339		$	1.79		3.38		$	2,156

A summary of restricted stock award activity under all equity compensation plans for the nine months ended September 30, 2024, is presented below:


		Number of
		Shares		Weighted Average
		(in thousands)		Grant Date Fair Value
Outstanding at December 31, 2023		502		$	10.73
Granted		229			10.66
Forfeited		(14)			10.03
Vested		(209)			11.37
Outstanding at September 30, 2024		508		$	10.46

As of September 30, 2024, the Company had approximately $4.3 million of unrecognized compensation expense related to stock options and restricted stock awards that will be recognized over a weighted average period of approximately 2.5 years.