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STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2021
Retirement Benefits [Abstract]  
STOCK-BASED COMPENSATION

14. STOCK-BASED COMPENSATION

 

The options outstanding as of June 30, 2021, have been classified by exercise price, as follows:

 

Outstanding  Exercisable 
       Weighted             
       Average   Weighted       Weighted 
       Remaining   Average       Average 
Exercise  Number   Contractual   Exercise   Number   Exercise 
Price  Outstanding   Life (Years)   Price   Exercisable   Price 
$480 - $560   894    4.45   $537.34    734   $532.43 
$1,208 - $1,352   25    2.75   $1,336.00    25   $1,336.00 
$480 - $1,352   919    4.40   $559.07    759   $558.88 
                          
Issuances outside of Plans
$1.79   850,000    9.22   $1.79    0   $0.00 
                          
Total Options
$480 - $1,856   850,919    9.22   $2.39    759   $558.88 

 

The total stock-based compensation expense related to stock options and stock awards issued the Company’s employees, consultants and directors, included in reported net income (loss) for the three and six months ended June 30, 2021 and 2020, was comprised as follows:

 

                             
   Three Months Ended June 30,   Six Months Ended June 30, 
   2021   2020   2021   2020 

General and administrative

  $565,000   $20,000   $584,000   $143,000 
Total stock-based compensation  $565,000   $20,000   $584,000   $143,000 

 

A summary of option activity under the Company’s stock option plans as of June 30, 2021, and changes during the six months ended are as follows:

 

        Outstanding Options 
                   Weighted      
              Weighted    Average      
    Shares         Average    Remaining    Aggregate 
    Available    Number    Exercise     Contractual    Intrinsic 
    for Grant    of Shares    Price    Life (years)     Value 
January 1, 2021   6,693    925   $564.43    4.87   $0 
Restricted stock awards   0    —                
Forfeited   6    (6)  $1,352.00           
June 30, 2021   6,699    919   $559.07    4.40   $0 

 

1 Includes options that were issued pursuant to the Company’s 2002 Plan and are not available for future issuance.

 

 

As of June 30, 2021, there was $83,000 of unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under the Plans. That cost is expected to be recognized over a weighted average period of 0.72 years.

 

GWW Stock-Based Compensation

 

On May 25, 2021, GWW issued to Jonathan Read, its Chief Executive Officer, and Timothy Long, its Chief Operating Officer, options to purchase an aggregate total of 100,000 shares of GWW Class A common stock, at an exercise price per share of $14.64. The options vest over a four-year period. Additionally, Mr. Read and Mr. Long were also granted a restricted stock award to acquire an aggregate of 50,000 shares of GWW Class A common stock, vesting annually over a three-year term. As of the date of grant, the authorized share capital of GWW is 1,000,000 shares of Class A common stock, of which 700,000 shares were issued and outstanding, 500,000 shares of Class B common stock of which 500,000 shares were issued and outstanding and 100,000 shares of preferred stock of which no shares of which were outstanding. The stock-based compensation expense related to the options included in reported net income (loss) for the three and six months ended June 30, 2021 was $545,000, based on the estimated fair value of the options on the date of issuance. The estimated fair value of the options was based on observable market prices of the Company’s common stock and extrapolated to GWW based upon its relative fair value within the Company as determined by equal weighting of revenues, operating income, and net tangible assets between the Company’s subsidiaries. As of June 30, 2021, there was $514,000 of unrecognized compensation cost related to non-vested stock-based compensation arrangements with Mr. Read and Mr. Long. That cost is expected to be recognized over a weighted average period of 2.9 years.