Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation Plan

Stock-Based Compensation Plan
3 Months Ended
Mar. 31, 2023
Stock-Based Compensation Plan [Abstract]  
Stock-Based Compensation Plan NOTE 12. STOCK-BASED COMPENSATION PLAN

Under the Company’s current 2015 Stock Incentive Plan (the “2015 Plan”), the Company’s Board of Directors has flexibility to determine the type and amount of awards to be granted to eligible participants, who must be employees, directors, officers or consultants of the Company or its subsidiaries. The 2015 Plan allows for grants of incentive stock options, nonqualified stock options, restricted stock awards, stock appreciation rights, and restricted units. The aggregate number of shares of common stock that may be granted through awards under the 2015 Plan to any employee in any calendar year may not exceed 500 shares. The 2015 Plan will continue in effect until December 2025 unless terminated sooner. 

During the three months ended March 31, 2023, the Company did not issue any stock options under the 2015 Plan to employees of the Company.

Market Condition Restricted Shares Granted:

On March 14, 2023, the Company awarded the Executive Chairman 500 restricted shares under the 2015 Plan, of which 250 and 250 shares will vest if, on or before March 14, 2033, the Fair Market Value (as defined in the Plan) of the Company’s common stock shall have equaled or exceeded $15.00 and $18.00 per share for twenty consecutive trading days, respectively. As the vesting terms of the restricted shares include a market condition, the fair value of the restricted stock was estimated as of the date of grant using the Monte-Carlo pricing model with the following assumptions:

March 14, 2023

Number issued


Vesting period

$15.00 - $18.00 stock price target

Grant price (per share)


Dividend yield


Expected volatility


Risk-free interest rate


Expected term (years)

2.56 - 3.22

Weighted average fair value (per share)

$7.84 - $8.34

Using these assumptions, the grant date fair value of the restricted stock awards was approximately $4,046 and the expected term was between 2.56 and 3.22 years.

The total non-cash stock compensation expense related to restricted stock, stock options and stock awards recorded by the Company for the three months ended March 31, 2023 and 2022 was $1,334 and $3,367, respectively. For the three months ended March 31, 2023 and 2022, the majority of stock-based compensation costs were classified as selling, general and administrative expenses.

As of March 31, 2023, there were 587 unvested stock options and unrecognized compensation cost of $2,797 related to unvested stock options, as well as 1,717 unvested restricted stock awards and unrecognized compensation costs of $10,836 related to unvested restricted stock awards.