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Stock Option Plan (Tables)

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of stock-based compensation expense for stock options

Stock-based compensation expense for the three and six months ended June 30 are as follows

			Three Months Ended June 30,												Six Months Ended June 30,
			2022						2021						2022						2021
Options			$	548,652					$	810,738					$	1,370,758					$	1,063,008
Restricted stock			1,187,254						258,137						1,801,093						267,972
Total			$	1,735,906					$	1,068,875					$	3,171,851					$	1,330,980

Schedule of black-scholes option pricing model to estimate the fair value of stock options

The following assumptions were used in the Black-Scholes model to calculate the fair value of stock options granted for the six months ended June 30, 2022 for the 2010 Plan and the 2020 Plan.

			2010 Plan						2020 Plan
Expected life of options (in years) (1)			6.1						6.1
Dividend yield (2)			0		%				0		%
Risk-free interest rate (3)			2.00		%				2.00		%
Volatility (4)			54.1		%				54.1		%

__________________

(1)The expected life of options is the average of the contractual term of the options and the vesting period.

(2)No cash dividends have been declared on the Company’s common stock since the Company’s inception, and the Company currently does not anticipate declaring or paying cash dividends over the expected life of the options.

(3)The risk-free interest rate is based on the yields on U.S. Treasury debt securities with maturities approximating the estimated life of the options.

(4)Volatility is estimated by management. As the Company has been a private company for most of its existence, there is not enough historical volatility data related to the Company’s Common stock as a public entity. Therefore, this estimate is based on the average volatility of certain public company peers within the Company’s industry.The following assumptions were used in the Monte Carlo Simulation model to calculate the fair value of Class D Incentive Units granted for the six months ended June 30, 2022.

			Class D Units
Expected life of Class D Incentive Units (in years) (1)			5.5
Risk-free interest rate (2)			3.02		%
Volatility (3)			69.50		%

__________________

(1)The expected life of options is the average of the contractual term of the Class D Incentive Units and the vesting period.

(2)The risk-free interest rate is based on the yields on U.S. Treasury debt securities with maturities approximating the estimated life of the options.

(3)Volatility is estimated by management. As the Company has been a private company for most of its existence, there is not enough historical volatility data related to the Company’s Common stock as a public entity. Therefore, this estimate is based on the average volatility of certain public company peers within the Company’s industry.

Schedule of stock option activity

The following is a summary of the stock option activity under the 2010 Plan, as converted to the Company’s shares due to Reverse Recapitalization, for the six months ended June 30, 2022:

			Shares						Weighted- Average Exercise Price per Share($)						Weighted- Average Remaining Contractual Term (Years)						Aggregate Intrinsic Value($)
Outstanding - December 31, 2021			1,035,035						3.21						5.90						5,688,201
Granted			—						—						—						—
Exercised			(42,729)						2.42						—						—
Forfeited			(36,065)						7.61						—						—
Expired/Cancelled			(5,310)						1.37						—						—
Outstanding - June 30, 2022			950,931						3.09						5.24						2,264,735
Options Exercisable at June 30, 2022			836,687						2.52						4.84						2,257,456
Option Vested at June 30, 2022			836,687						2.52						4.84						2,257,456

The following is a summary of the stock option activity under the 2020 Plan for the six months ended June 30, 2022:

			Shares						Weighted- Average Exercise Price per Share ($)						Weighted- Average Remaining Contractual Term (Years)						Aggregate Intrinsic Value($)
Outstanding - December 31, 2021			1,602,850						13.18						9.27						46,920
Granted			121,100						6.87						9.86						—
Exercised			—						—						—						—
Forfeited			(128,450)						10.18						—						—
Expired/Cancelled			(1,250)						8.25						—						—
Outstanding - June 30, 2022			1,594,250						12.84						8.83						—
Options Exercisable at June 30, 2022			422,327						13.38						8.74						—
Option Vested at June 30, 2022			422,327						13.38						8.74						—

A summary of the status of the Company’s Class D Incentive Units as of December 31, 2021, and changes during the six months ended June 30, 2022, is presented below:

			Shares						Weighted- Average Grant Date Fair Value($)
Nonvested at December 31, 2021			—						—
Granted			250,000						13.28
Vested			—						—
Cancelled			—						—
Nonvested and Outstanding at June 30, 2022			250,000						13.28

Disclosure of share-based compensation arrangements by share-based payment award

Other Information:

						Six Months Ended June 30,
						2022						2021
Amount received from option exercised						$	173,575					$	—
						June 30, 2022												Weighted average remaining recognition period
Total unrecognized options compensation costs						$	7,767,742											2.80

Schedule of nonvested restricted stock units

A summary of the status of the Company’s nonvested restricted stock units as of December 31, 2021, and changes during the six months ended June 30, 2022, is presented below:

			Shares						Weighted- Average Grant Date Fair Value($)
Nonvested at December 31, 2021			353,817						11.00
Granted			134,575						6.16
Vested/Release			(202,141)						11.15
Cancelled/Forfeited			(6,294)						9.93
Nonvested and Outstanding at June 30, 2022			279,957						8.60

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Tabular disclosure of share-based payment arrangement.

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Tabular disclosure of allocation of amount expensed and capitalized for award under share-based payment arrangement to statement of income or comprehensive income and statement of financial position. Includes, but is not limited to, corresponding line item in financial statement.

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Tabular disclosure of the changes in outstanding nonvested restricted stock units.

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Tabular disclosure for stock option plans. Includes, but is not limited to, outstanding awards at beginning and end of year, grants, exercises, forfeitures, and weighted-average grant date fair value.

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