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STOCK BASED COMPENSATION | 12 Months Ended
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Dec. 31, 2021
Share-based Payment Arrangement [Abstract] |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION Summary of Stock Plan The Company currently has one active stock-based compensation plan, the 2017 Plan, which was adopted by the Company’s Board of Directors on April 17, 2017 and was approved by its shareholders on June 8, 2017, and subsequently amended by the Board in February 2019, which was approved by the Company's shareholders on June 11, 2019. The 2017 Plan supersedes the Mannatech, Incorporated 2008 Stock Incentive Plan, as amended, which was set to expire on February 20, 2018. The Board has reserved a maximum of 370,000 shares of our common stock that may be issued under the 2017 Plan (subject to adjustments for stock splits, stock dividends or other changes in corporate capitalization). As of December 31, 2021, the Company had a total of 144,155 shares available for grant under the 2017 Plan, which expires on April 16, 2027. The 2017 Plan provides for grants of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance stock and performance stock units to our employees, board members, and consultants. However, only employees of the Company and its corporate subsidiaries are eligible to receive incentive stock options. The exercise price per share for all stock options will be no less than the market value of a share of common stock on the date of grant. Any incentive stock option granted to an employee owning more than 10% of our common stock will have an exercise price of no less than 110% of our common stock’s market value on the grant date. The majority of stock options vest over two or three years, and generally are granted with a term of ten years, or five years in the case of an incentive option granted to an employee who owns more than 10% of our common stock. A summary of changes in stock options outstanding during the year ended December 31, 2021, is as follows:
| 2021
| Number of Options (in thousands) |  | Weighted average exercise price |  | Weighted average remaining contractual life (in years) |  | Aggregate intrinsic value (in thousands)
Outstanding at beginning of year | 306 |  |  | $ | 16.07 |  |  |  |  |
Granted | 10 |  |  | 25.66 |  |  |  |  |
Exercised | (58) |  |  | 14.51 |  |  |  |  |
Expired | (14) |  |  | 11.40 |  |  |  |  |
Forfeit | — |  |  | — |  |  |  |  |
Outstanding at end of year | 244 |  |  | $ | 17.10 |  |  | 5.01 |  | $ | 5,174 |
Options exercisable at year end | 236 |  |  | $ | 16.86 |  |  | 4.86 |  | $ | 5,054 |
During 2021, the Company issued 58,483 new shares upon the exercise of options and granted 10,000 new options to management and members of the Board. Options exercised during the year ending December 31, 2021 and December 31, 2020 had a total intrinsic value, calculated as the difference between the exercise date stock price and the exercise price of $1.2 million and $0.1 million, respectively. Non-vested shares at each of December 31, 2021 and 2020 were approximately 8,336. Valuation and Expense Information Under FASB ASC Topic 718 Compensation – Stock Compensation The Company is required to measure and recognize compensation expense related to any outstanding and unvested stock options previously granted, and thereafter recognize, in its consolidated financial statements, compensation expense related to any new stock options granted after implementation using a calculated fair-value based option-pricing model. The Company uses the Black-Scholes option-pricing model to calculate the fair value of all of its stock options and its assumptions are based on historical information. The following assumptions were used to calculate the compensation expense and the calculated fair value of stock options granted each year:
| 2021 |  | 2020 |
Dividend yield: | 2.4 | % | 3.0 | %
Risk-free interest rate: | 0.7 | % | 0.3 | %
Expected market price volatility: | 56.7 | % | 52.5 | %
Average expected life of stock options: | 4.5 years |  | 4.5 years |
The computation of the expected volatility assumption used in the Black-Scholes calculations for new grants is based on historical volatility of the Company’s stock. The expected life assumptions are based on the Company’s historical employee exercise and forfeiture behavior. The weighted-average grant-date fair value of stock options granted during the years ended December 31, 2021 and 2020 was $6.77 and $4.00 per share, respectively. The total fair value of awards vested during the years ended December 31, 2021 and 2020 was less than $0.1 million and $0.3 million, respectively. The Company recorded the following amounts related to the expense of the fair values of options during the years ended December 31, 2021 and 2020 (in thousands):
| 2021 |  | 2020
Selling, general and administrative expenses and income from operations before income taxes | $ | 50 |  |  | $ | 124 |
Benefit for income taxes | (12) |  |  | (9) |
Effect on net income | $ | 38 |  |  | $ | 115 |
As of December 31, 2021, the Company had less than $0.1 million of total unrecognized compensation expense related to stock options currently outstanding, to be recognized in future years, ending December 31, as follows (in thousands):
| Total gross unrecognized compensation expense |  | Total tax benefit associated with unrecognized compensation expense |  | Total net unrecognized compensation expense
2022 | $ | 26 |  |  | $ | 6 |  |  | $ | 20 |
2023 | 10 |  |  | 2 |  |  | 8 |
| $ | 36 |  |  | $ | 8 |  |  | $ | 28 |

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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