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SHAREHOLDERS’ EQUITY | 6 Months Ended
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Jun. 30, 2023
Shareholders’ equity: |
SHAREHOLDERS’ EQUITY | 9. SHAREHOLDERS’ EQUITY At June 30, 2023, the Company had 25,071,372 shares of common stock outstanding and 245,000,000 authorized. In addition, as of June 30, 2023, the Company had 5,000,000 authorized but unissued shares of preferred stock. During the three months ended June 30, 2023, the Company paid $241 thousand to repurchase 163,300 shares of common stock as part of a share repurchase plan. 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 and six months ended June 30, 2023 and 2022, there was no compensation expense related to stock options. As of June 30, 2022, all stock options had vested. No stock options were granted or exercised during the three or six months ended June 30, 2023 or 2022. Stock options for the purchase of 2,913 shares of common stock expired during the six months ended June 30, 2022. The stock options had de minimis intrinsic values for the periods reported. Presented below is information for stock options outstanding and exercisable as of June 30, 2023, and December 31, 2022: SUMMARY OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE
|  | June 30, 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 June 30, 2023: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE
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 |  |  |  | 4.3 |  |  |  | 16,500 |  |  | $ | 10.00 |
| 10,622 |  |  |  | 90.00 |  |  |  | 124.80 |  |  |  | 106.20 |  |  |  | 0.8 |  |  |  | 10,622 |  |  |  | 106.20 |
| 1,000 |  |  |  | 226.20 |  |  |  | 226.20 |  |  |  | 226.20 |  |  |  | 1.2 |  |  |  | 1,000 |  |  |  | 226.20 |
| 28,122 |  |  | $ | 7.20 |  |  | $ | 226.20 |  |  | $ | 54.03 |  |  |  | 2.9 |  |  |  | 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 and 2022 Equity Incentive Plan. In addition, in June 2023, per the terms of his employment agreement 100,000 restricted stock awards were issued to the Company’s new Chief Financial Officer. The restricted stock awards are time-based awards and are amortized ratably over the requisite two-year 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 six months ended June 30, 2023: SCHEDULE OF NON-VESTED TIME- BASED RESTRICTED STOCK AWARDS
|  | Shares |  |  | Weighted-Avg. Grant Date Fair Value per Share |
Non-vested restricted stock as of December 31, 2022 |  |  | 687,000 |  |  | $ | 3.79 |
Granted |  |  | 896,434 |  |  | $ | 2.21 |
Vested |  |  | (273,000 | ) |  | $ | 3.78 |
Forfeited |  |  | (60,000 | ) |  | $ | 2.30 |
Non-vested restricted stock as of June 30, 2023 |  |  | 1,250,434 |  |  | $ | 2.73 |
For the three and six months ended June 30, 2023, the Company recognized $0.6 million and $1.3 million, respectively, of stock compensation expense related to restricted stock grants. For the three and six months ended June 30, 2022, the Company recognized $0.6 million and $2.1 million, respectively, of stock compensation expense related to restricted stock grants. Total compensation cost related to non-vested time-based awards not yet recognized in the Company’s condensed consolidated statements of operations as of June 30, 2023 was $1.5 million. This cost is expected to be recognized over a weighted average period of 1.9 years. Dividends During the three-month periods ended March 31 and June 30, 2023, the Company’s board of directors approved the declaration and payment of quarterly cash dividends of $0.0225 per share of common stock. For the six months ended June 30, 2023 and 2022, the Company paid dividends of $1.2 million and $0.6 million, respectively. As an update to the existing shareholder returns program, on August 9, 2023, the Board of Directors suspended the Company’s dividend payment program, with the associated future capital resources being allocated towards the Company’s share repurchase program and repayments of our credit facility’s outstanding balance. Share Repurchase Program On April 26, 2023, the Board of Directors of the Company authorized and approved a share repurchase program for up to $5.0 million of the currently outstanding shares of the Company’s common stock. Subject to any future extensions, the repurchase program is scheduled to expire the earlier of on June 30, 2024, or when a maximum of $5.0 million of the Company’s common stock has been repurchased, or when the program is discontinued by the Company. Under the stock repurchase program, shares are repurchased from time to time in the open market or through negotiated transactions at prevailing market prices, or by other means in accordance with federal securities laws. Repurchases are made at management’s discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. The repurchase program is funded using the Company’s working capital. The repurchased shares are cancelled and therefore will not be held in treasury or reissued. During the three months ended June 30, 2023, the Company paid $0.2 million for the repurchase of 163,300 shares at a weighted average price of $1.48 per share.

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