Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION

v3.24.2.u1
STOCK-BASED COMPENSATION
6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
STOCK-BASED COMPENSATION

NOTE D – STOCK-BASED COMPENSATION

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 June 30, 2024, there were 110,000 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. In addition, there were 425,000 shares of common stock subject to outstanding awards under the 2013 Plan.

A summary of restricted stock unit activity for the six months ended June 30, 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     (122,500 )     (2.42 )
Balance of restricted stock units outstanding at June 30, 2024     535,000     $ 1.71  

 

Restricted stock unit compensation expense was $95,000 and $106,000 for the three months ended June 30, 2024 and 2023, respectively. Restricted stock unit expense was $210,000 and $267,000 for the six months ended June 30, 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 $449,907 of unrecognized restricted stock unit compensation as of June 30, 2024 to be expensed over a weighted average period of 1.46 years.

All of the Company’s outstanding (unvested) restricted stock units have dividend equivalent rights. During the three and six months ended June 30, 2024, the Company paid a total of $2,000 and $35,000, respectively, of such dividend equivalent rights. As of June 30, 2024 and December 31, 2023, there was $94,000 and $99,000, respectively, accrued for dividend equivalent rights which were included in other accrued expenses.