Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.22.2
Stock-Based Compensation
6 Months Ended
Jun. 30, 2022
Stock-Based Compensation  
Stock-Based Compensation

Note 11 – Stock-Based Compensation

A summary of stock option activity related to the Company’s standard employee incentive plan (excluding options awarded under the Long-Term Incentive Plan (LTIP) – Note 12) for the six months ended June 30, 2022 is as follows:

Weighted

Number of

Average

    

Options

    

Exercise Price

Outstanding at December 31, 2021

 

2,823,634

$

7.67

Granted

 

117,500

 

5.83

Exercised

 

(85,452)

 

2.66

Expired or Forfeited

 

(111,014)

 

8.19

Outstanding at June 30, 2022

 

2,744,668

$

7.75

The weighted average remaining contractual term for all options as of June 30, 2022 and December 31, 2021 was 7.57 years and 7.95 years, respectively.

As of June 30, 2022, there were 1,303,168 options that were fully-vested and exercisable at a weighted average exercise price of $6.36 per share. The weighted average remaining contractual term of the vested options is 6.5 years.

As of June 30, 2022, there were 1,441,500 unvested options exercisable at a weighted average exercise price of $9.73 per share. The weighted average remaining contractual term of the unvested options is 8.5 years.

The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. At June 30, 2022, the Company had $7,815,902 of unrecognized stock compensation expense, which will be recognized over a weighted average period of 2.8 years.

During the three months ended June 30, 2022, the Company issued 88,650 shares of common stock to its independent board members as part of their annual retainer for services covering the period of July 2022 to June 2023. The fair market value on the date of award of the stock issued was $5.64, resulting in an aggregate fair value of approximately $500,000. The fair market value of these awards is expensed over twelve (12) months, beginning on July 1, 2022.

During the three months ended June 30, 2022, the Company issued 200,000 shares of common stock to its recently appointed Chief Operating Officer. The fair market value on the date of award of the stock issued was $5.64, resulting in an aggregate fair value of approximately $1,128,000. The fair market value of this award is expensed over a forty-two (42) month vesting period, beginning on June 15, 2022.

For the three months ended June 30, 2022 and 2021, the Company recorded total stock-based compensation expense, including stock awards but excluding awards under the Company’s LTIP, of $1,222,733 and $1,012,094, respectively. For the six months ended June 30, 2022 and 2021, the Company recorded total stock-based compensation expense, including stock awards but excluding awards under the Company’s LTIP, of $2,573,343 and $1,468,838, respectively