Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2024
Equity [Abstract]  


Restricted Stock Units

The Company adopted the 2022 Stock Incentive Plan, (the “2022 Plan”), approved by its Board of Directors on July 25, 2022 and its stockholders on September 20, 2022. The 2022 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.

As of March 31, 2024, there were 121,250 shares of common stock subject to outstanding awards under the 2022 Plan and 2,110,000 shares of common stock available for issuance under the 2022 Plan.

A summary of restricted stock unit activity for the three months ended March 31, 2024 is as follows (each restricted stock unit issued by the Company represents the right to receive one share of the Company’s common stock):

    Number of Shares     Weighted-Average Grant Date Fair Value  
Balance of restricted stock units outstanding at December 31, 2023     587,500     $ 1.81  
Grants of restricted stock units     70,000       2.17  
Vested restricted stock units     (111,250 )     (2.45 )
Balance of restricted stock units outstanding at March 31, 2024     546,250     $ 1.72  



Restricted stock unit compensation expense was $115,000 and $161,000 for the three months ended March 31, 2024 and 2023, respectively. Stock-based compensation expense is included in general and administrative expenses in the unaudited condensed consolidated statements of operations.

The Company had an aggregate of $545,000 of unrecognized restricted stock unit compensation as of March 31, 2024 to be expensed over a weighted average period of 1.7 years.

All of the Company’s outstanding (unvested) restricted stock units have dividend equivalent rights. During the three months ended March 31, 2024, the Company paid a total of $35,000 of such dividend equivalent rights. As of March 31, 2024 and December 31, 2023, there was $96,000 and $99,000, respectively, accrued for dividend equivalent rights which were included in other accrued expenses.