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SHAREHOLDERS’ EQUITY
 12 Months Ended
Dec. 31, 2022
Shareholders’ equity:  
SHAREHOLDERS’ EQUITY

10. SHAREHOLDERS’ EQUITY

 

 

At December 31, 2022, the Company had 25,023,812 shares of common stock outstanding and 245,000,000 authorized. In addition, as of December 31, 2021, the Company had 5,000,000 authorized but unissued shares of preferred stock. On January 5, 2022, the Company issued 19,905,736 shares of common stock in connection with the acquisition of the Acquired Assets. In February 2021, the Company sold 1,131,600 shares of common stock for net proceeds of $5.3 million.

 

Stock Option Plans

 

From time to time, the Company may grant stock options under its incentive plan covering shares of common stock to employees of the Company. Stock options, when exercised, are settled through the payment of the exercise price in exchange for new shares of stock underlying the option. These awards typically expire ten years from the grant date.

 

 

For the years ended December 31, 2022 and 2021, there was no compensation expense related to stock options. As of December 31, 2022, all stock options had vested. No stock options were granted or exercised, during the years ended December 31, 2022 or 2021. During the years ended December 31, 2022 and 2021, options to purchase 2,913 shares of common stock and 332 shares of common stock, respectively, expired. Presented below is information about stock options outstanding and exercisable as of December 31, 2022 and 2021:

 

   December 31, 2022   December 31, 2021 
   Shares   Price (1)   Shares   Price (1) 
                     
Stock options outstanding and exercisable   28,122   $54.03    31,035   $62.79 

 

  (1) Represents the weighted average price.

 

The following table summarizes information for stock options outstanding and for stock options exercisable at December 31, 2022. All shares and prices per share have been adjusted for a one share-for-ten shares reverse stock split that took effect on January 6, 2020:

 

Options Outstanding  Options Exercisable 
   Exercise Price   Remaining       Weighted Average 
Number of  Range   Weighted   Contractual   Number of   Exercise 
Shares  Low   High   Average   Term (years)   Shares   Price 
                         
16,500  $7.20   $11.60   $10.00    4.8    16,500   $10.00 
10,622   90.00    124.80    106.20    1.3    10,622    106.20 
1,000   226.20    226.20    226.20    1.7    1,000    226.20 
                               
28,122  $7.20   $226.20   $54..03    3.4    28,122   $54.03 

 

Restricted Stock

 

The Company grants restricted stock under its incentive plan covering shares of common stock to employees and directors of the Company. The restricted stock awards are time-based awards and are amortized ratably over the requisite service period. Restricted stock vests ratably on each anniversary following the grant date provided the grantee is employed on the vesting date. Forfeitures of restricted stock awards are recognized as they occur. Restricted stock granted to employees, when vested, may be net settled through the net issuance of shares, reduced by the number of shares required to pay withholding taxes. Non-vested shares of restricted stock are not included in common shares outstanding until vesting has occurred.

 

The following table presents the changes in non-vested, time-based restricted stock awards to all employees and directors for the year ended December 31, 2022:

 

   Shares  

Weighted-Avg.

Grant Date

Fair Value

per Share

 
     
Non-vested restricted stock at December 31, 2021   174,000   $4.75 
Granted   986,500   $3.70 
Vested   (473,500)  $3.95 
Non-vested restricted stock at December 31, 2022   687,000   $3.79 

 

 

The following table presents the stock compensation expense related to restricted stock grants for the years ended December 31, 2022 and 2021:

 

  

Year Ended

December 31,

 
   2022   2021 
   (in thousands) 
Stock compensation expense  $3,017   $549 
           

 

Total compensation cost related to non-vested time-based awards not yet recognized in the Company’s consolidated statements of operations as of December 31, 2022 is $929 thousand. This cost is expected to be recognized over a weighted average period of 1.8 years. At December 31, 2022, the Company had 3,000,000 shares available for issuance under its 2022 Stock Incentive Plan.