XML 25 R16.htm IDEA: XBRL DOCUMENT
v3.24.1.1.u2

EQUITY AND LONG-TERM COMPENSATION | 3 Months Ended
--- | ---
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract] |
EQUITY AND LONG-TERM COMPENSATION | 8 – EQUITY AND LONG-TERM COMPENSATION Summary of Stock Based Compensation Activity Power REIT’s 2020 Equity Incentive Plan, which superseded the 2012 Equity Incentive Plan, was adopted by the Board on May 27, 2020 and approved by shareholders on June 24, 2020. It provides for the grant of the following awards: (i) Incentive Stock Options; (ii) Nonstatutory Stock Options; (iii) SARs; (iv) Restricted Stock Awards; (v) RSU Awards; (vi) Performance Awards; and (vii) Other Awards. The Plan’s purpose is to secure and retain the services of Employees, Directors and Consultants, to provide incentives for such persons to exert maximum efforts for the success of the Trust and to provide a means by which such persons may be given an opportunity to benefit from increases in value of the common Stock through the granting of awards. As of March 31, 2024, the aggregate number of shares of Common Stock that may be issued pursuant to outstanding awards is currently 1,925,002 which is subject to adjustment per the Plan. Summary of Stock Based Compensation Activity – Options On July 15, 2022, the Trust granted non-qualified stock options (“options”) to acquire 205,000 shares of common stock at a price of $13.44 to its independent trustees, officers and an employee. The term of each option is 10 years. The options vest over three years as follows: in a series of thirty-six (36) equal monthly installments measured from the Vesting Commencement Date on the same date of the month as the Vesting Commencement Date which is August 1, 2022. The Trust accounts for share-based payments using the fair value method. The Trust recognizes all share-based payments in our financial statements based on their grant date fair values and market closing price, calculated using the Black-Scholes option valuation model. The following assumptions were made to estimate fair value: SCHEDULE OF STOCK BASED COMPENSATION VALUATION ASSUMPTION OF ACTIVITY OPTIONS
Expected Volatility |  |  | 63 | %
Expected Dividend Yield |  |  | 0 | %
Expected Term (in years) |  |  | 5.8 |
Risk Free Rate |  |  | 3.05 | %
Estimate of Forfeiture Rate |  |  | 0 | %
The Trust uses historical data to estimate dividend yield and volatility and the “simplified method” as described in the SEC Staff Accounting Bulletin #110 to determine the expected term of the option grants. The risk-free interest rate for the expected term of the options is based on the U.S. treasury yield curve on the grant date. The Trust does not have historical data of forfeiture and used a 0% forfeiture rate in calculating unrecognized share-based compensation expense and will account for forfeitures as they occur. On January 31, 2023, 6,250 options were forfeited by an employee who is no longer employed by the Trust. The summary of stock-based compensation activity for the three months ended March 31, 2024, with respect to the Trust’s stock options, is as follows: Summary of Activity - Options SCHEDULE OF SHARE BASED COMPENSATION STOCK OPTION ACTIVITY
|  | Number of Options |  |  | Weighted Average Exercise Price |  |  | Aggregate Intrinsic Value |
Balance as of December 31, 2023 |  |  | 197,500 |  |  | $ | 13.44 |  |  |  | - |
Options Forfeited |  |  | - |  |  |  |  |  |  |  |  |
Balance as of March 31, 2024 |  |  | 197,500 |  |  |  | 13.44 |  |  |  | - |
Options exercisable as of March 31, 2024 |  |  | 109,722 |  |  | $ | 13.44 |  |  |  | - |
The weighted average remaining term of the options is 8.29 years. Summary of Stock Based Compensation Activity – Restricted Stock The summary of stock-based compensation activity for the three months ended March 31, 2024, with respect to the Trust’s restricted stock, was as follows: SCHEDULE OF SHARE BASED COMPENSATION RESTRICTED STOCK UNITS AWARD ACTIVITY Summary of Activity - Restricted Stock
|  | Number of Shares of Restricted Stock |  |  | Weighted Average Grant Date Fair Value |
Balance as of December 31, 2023 |  |  | 13,415 |  |  |  | 18.50 |
Plan Awards |  |  | - |  |  |  | - |
Restricted Stock Forfeited |  |  | - |  |  |  | - |
Restricted Stock Vested |  |  | (3,375 | ) |  |  | 25.46 |
Balance as of March 31, 2024 |  |  | 10,040 |  |  |  | 16.17 |
Stock-based Compensation During the three months ended March 31, 2024, the Trust recorded approximately $86,000 of non-cash expense related to restricted stock and approximately $131,000 of non-cash expense related to options granted compared to approximately $95,000 of non-cash expense related to restricted stock and approximately $132,000 of non-cash expense related to options granted for the three months ended March 31, 2023. As of March 31, 2024, there was approximately $162,000 of total unrecognized share-based compensation expense for restricted stock and approximately $690,000 of total unrecognized share-based expense for options, which expense will be recognized through the third quarter of 2025. The Trust does not currently have a policy regarding the repurchase of shares on the open market related to equity awards and does not currently intend to acquire shares on the open market. Preferred Stock Dividends During the three months ended March 31, 2024, the Trust accrued a total of approximately $163,000 of dividends to holders of Power REIT’s Series A Preferred Stock.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration