Annual report pursuant to Section 13 and 15(d)

Stockholders??? Equity

v3.22.1
Stockholders’ Equity
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Stockholders’ Equity

Note F – Stockholders’ Equity

The 2013 Stock Incentive Plan (“2013 Plan”) provides for the grant of any or all of the following types of awards: (a) stock options, (b) restricted stock, (c) deferred stock, (d) stock appreciation rights, and (e) other stock-based awards including restricted stock units. Awards under the 2013 Plan may be granted singly, in combination, or in tandem. Subject to standard anti-dilution adjustments as provided, the 2013 Plan provides for an aggregate of 2,600,000 shares of the Company’s common stock to be available for distribution. The Company’s Compensation Committee generally has the authority to administer the 2013 Plan, determine participants who will be granted awards, the size and types of awards, the terms and conditions of awards and the form and content of the award agreements representing awards. Awards under the 2013 Plan may be granted to employees, directors and consultants of the Company and its subsidiaries. As of December 31, 2021, there were 1,837,500 shares of common stock available for issuance under the 2013 Plan.

[1] Restricted Stock Units

A summary of restricted stock units granted during the years ended December 31, 2021 and December 31, 2020 is as follows (each restricted stock unit represents the contingent right to receive one share of the Company’s common stock):

  2021     2020  
   

Number

of Shares

     Weighted-Average Grant
Date Fair Value		    

Number

of Shares

     Weighted-Average Grant
Date Fair Value		  
Balance of restricted stock units outstanding at beginning of year     162,500     $ 2.25       340,000     $ 2.15  
Grants of restricted stock units     45,000       3.51       70,000       2.68  
Vested restricted stock units(1)     (195,000 )     (2.47 )     (247,500 )     (2.23 )
Balance of restricted stock units outstanding at end of year     12,500     $ 3.36       162,500     $ 2.25  

__________________________

(1)       Includes 125,000 shares of common stock subject to restricted stock units owned by the Company’s Chairman and Chief Executive Officer which vested on July 14, 2021 and settled on March 11, 2022.

 

Restricted stock unit compensation expense was $238,000 for the year ended December 31, 2021 and $302,000 for the year ended December 31, 2020.

The Company has an aggregate of $42,000 of unrecognized restricted stock unit compensation expense as of December 31, 2021 to be expensed over a weighted average period of 0.99 years.

The fair value of restricted stock units is determined based on the number of shares granted and the quoted market price of the Company’s common stock on the date of grant for time-based and performance-based awards.

All of the Company’s issued restricted stock units have dividend equivalent rights. As of December 31, 2021 and 2020, there was $72,000 and $53,000 accrued for dividend equivalent rights which were included in other accrued expenses.

[2] Stock Options

At December 31, 2021, one stock option to purchase 500,000 shares of common stock was outstanding representing an option grant outside of the 2013 Plan (issued prior to the establishment of the 2013 Plan). The one stock option has a weighted average exercise price of $1.19 and a weighted average remaining life of 0.84 years. There were no grants of stock options during the years ended December 31, 2021 and 2020.

The following table summarizes stock option activity for the years ended December 31:

 

 

2021

    

2020

  
          Weighted           Weighted  
          Average           Average  
    Options     Exercise     Options     Exercise  
   

Outstanding

    

Price

    

Outstanding

    

Price

  
Options outstanding
at beginning of year		     500,000     $ 1.19       605,000     $ 1.39  
Granted     —       —       —       —  
Expired     —       —       —       —  
Exercised     —       —       (105,000 )   $ 2.34  
Options outstanding at end of year     500,000     $ 1.19       500,000     $ 1.19  
Options exercisable at end of year     500,000     $ 1.19       500,000     $ 1.19  

 

During the year ended December 31, 2021 and 2020, the Company did not recognize any stock-based compensation related to the vesting of prior issued stock options to employees and directors. The Company at December 31, 2021 and 2020 had no remaining unrecognized expenses related to unvested stock options to employees and directors. The aggregate intrinsic value of all stock options exercisable at December 31, 2021 and 2020 was $815,000 and $1,250,000, respectively.

During the year ended December 31, 2020, stock options to purchase an aggregate of 105,000 shares of the Company’s Common Stock at an exercise price of $2.34 per share were exercised on net exercise (cashless basis) by each of the Company’s three outside directors. With respect to the net exercise (cashless) of these stock options, 4,707 aggregate net shares were delivered to the outside directors.