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SHAREHOLDERS’ EQUITY
 3 Months Ended
Mar. 31, 2023
Shareholders’ equity:  
SHAREHOLDERS’ EQUITY

9. SHAREHOLDERS’ EQUITY

 

At March 31, 2023, the Company had 25,234,672 shares of common stock outstanding and 245,000,000 authorized. In addition, as of March 31, 2023, 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.

 

Stock Options 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 three months ended March 31, 2023 and 2022, there was no compensation expense related to stock options. As of March 31, 2022, all stock options had vested. No stock options were granted or exercised during the three months ended March 31, 2023 or 2022. Stock options to purchase 750 shares of common stock expired during the three months ended March 31, 2022. Presented below is information about stock options outstanding and exercisable as of March 31, 2023, and December 31, 2022:

 

   March 31, 2023   December 31, 2022 
   Shares   Price   Shares   Price 
                     
Stock options outstanding and exercisable   28,122   $54.03    28,122   $54.03 

 

 

The following table summarizes information for stock options outstanding and for stock options exercisable at March 31, 2023:

 

Options Outstanding   Options Exercisable 
    Exercise   Weighted   Remaining       Weighted 
Number of   Price
Range		   Average
Exercise		   Contractual
Term		   Number of   Average
Exercise		 
Shares   Low   High   Price   (years)   Shares   Price 
                          
 16,500   $7.20   $11.60   $10.00    4.5    16,500   $10.00 
 10,622    90.00    124.80    106.20    1.1    10,622    106.20 
 1,000    226.20    226.20    226.20    1.5    1,000    226.20 
                                 
 28,122   $7.20   $226.20   $54.03    3.1    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. In January 2023, 796,434 restricted stock awards were granted to employees and directors from the 2021 Equity Incentive Plan. 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 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 three months ended March 31, 2023:

 

   Shares   Weighted-Avg.
Grant Date
Fair Value
per Share		 
     
Non-vested restricted stock as of December 31, 2022   687,000   $3.79 
Granted   796,434   $2.30 
Vested   (273,000)  $3.78 
Non-vested restricted stock as of March 31, 2023   1,210,434   $2.81 

 

For the three months ended March 31, 2023 and 2022, the Company recognized $0.7 million and $1.5 million, respectively of stock compensation expense related to restricted stock grants. Total compensation cost related to non-vested time-based awards and not yet recognized in the Company’s condensed consolidated statements of operations as of March 31, 2023 was $2.6 million. This cost is expected to be recognized over a weighted average period of 2.1 years.