XML 24 R14.htm IDEA: XBRL DOCUMENT v3.23.3
STOCK-BASED COMPENSATION EXPENSE
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION EXPENSE

NOTE 8: STOCK-BASED COMPENSATION EXPENSE

 

The Company recorded stock-based compensation for the three and nine months ended September 30, 2023 and 2022, respectively, that were included in the following line items in our condensed consolidated statements of operations (in thousands):

 

   2023   2022   2023   2022 
  

Three months ended

September 30,

  

Nine months ended

September 30,

 
   2023   2022   2023   2022 
                 
Cost of revenue  $22   $9   $82   $26 
Research and development   47    16    113    43 
Selling   30    8    72    18 
General and administrative   150    86    380    220 
                     
Total  $249   $119   $647   $307 

 

Stock-based compensation expense in three-month periods ended September 30, 2023 and 2022 included approximately $44,783 and $40,000, respectively, related to restricted stock awards that directors are entitled to receive pursuant to the Director Compensation plan. Stock-based compensation expense in both nine-month periods ended September 30, 2023 and 2022 included approximately $0.1 million related to restricted stock awards that directors are entitled to receive pursuant to the Director Compensation plan. Under this plan each of the independent directors is entitled to an Annual Equity Retainer in the amount of $40,000, to be granted on the date of the Company’s annual meeting of shareholders or upon appointment to the board of directors and vest quarterly over the following year.

 

The following table summarizes restricted stock awards through September 30, 2023:

 

       Weighted 
   Restricted   Average 
   Awards   Exercise 
   (in shares)   Price 
Unvested restricted stock awards at January 1, 2023   -   $- 
Granted   29,660    6.57 
Exercised   (6,699)   6.68 
Forfeited   -    - 
Unvested restricted stock awards at September 30, 2023   22,961    6.53 

 

For the nine months ended September 30, 2023, the Company granted 254,000 stock options, vesting 25% per year over four years, with a ten-year life. The Company determined the weighted average fair value of stock options granted was $9.27 and is based upon weighted average assumptions below.

 

Stock price  $14.02 
Exercise price  $14.02 
Dividend yield   0%
Expected volatility   72%
Risk-free interest rate   3.39%
Expected life (in years)   6.00 

 

 

NOTE 8: STOCK-BASED COMPENSATION EXPENSE (continued)

 

The following table summarizes stock options awards through September 30, 2023:

 

       Weighted 
   Stock Option   Average 
   Awards   Exercise 
   (in shares)   Price 
Outstanding at January 1, 2023   673,000   $5.70 
Granted   254,000    14.02 
Exercised   (20,625)   4.18 
Forfeited   (32,500)   6.57 
Outstanding at September 30, 2023   873,875    8.12 

 

The following table summarizes information about the outstanding and exercisable options at September 30, 2023 by ranges of exercise prices:

 

   

Options Outstanding

   Options Exercisable 
       Weighted  Weighted          Weighted     
       Average  Average          Average     
Exercise   Number  Remaining  Exercise   Intrinsic   Number  Exercise   Intrinsic 
Price Range   Outstanding  Contractual  Price   Value   Exercisable  Price   Value 
$4.00-7.00   487,375  8.1  $4.56   $1,020,173   209,375  $4.49   $451,941 
$7.01-10.00   20,000  4.6  $8.07   $-   20,000  $8.07   $- 
$10.01-13.00   130,000  4.3  $11.51   $-   120,000  $10.52   $- 
$13.01-16.00   236,500  9.5  $14.11   $-   -   -   $- 

 

As of September 30, 2023, there was $2.7 million of unrecognized compensation costs related to stock options expected to be recognized over a weighted average period of 2.9 years.