Stock-Based Compensation Plan |
12 Months Ended |
|---|---|
Dec. 31, 2021 | |
| Stock-Based Compensation Plan [Abstract] | |
| Stock-Based Compensation Plan | NOTE 13. STOCK-BASED COMPENSATION PLAN Under the Company’s current 2015 Stock Incentive Plan (the “2015 Plan”), the Company’s Board of Directors (the “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. As of December 31, 2021, the number of shares authorized and reserved for issuance under the 2015 Plan is 7,400 shares, subject to automatic annual increase equal to 5% of the total number of shares of the Company’s outstanding common stock. Options Granted: During the year ended December 31, 2021, the Company issued stock options for an aggregate of 500 shares under the 2015 Plan to directors and employees of the Company. The options issued during the year ended December 31, 2021 generally vest and become exercisable over a period of one to three years and expire ten years from the date of the grant. For computing the fair value of the stock-based awards, the fair value of each option grant has been estimated as of the date of grant using the Black-Scholes option-pricing model with the following assumptions: 2021 2020 2019 Number of options 500 1,098 188Option vesting period 1 - 3 Years 1 - 5 Years 1 - 3 YearsGrant price (per share) $15.15 - $24.43 $9.99 - $16.93 $13.21Dividend yield 0.41% - 0.66% 0.59% - 1.00% 0.76%Expected volatility (a) 39.1% - 43.6% 40.9% - 44.2% 41.0% - 41.2%Risk-free interest rate 0.50% - 1.02% 0.41% - 0.65% 1.88% - 1.93%Expected life (years) (b) 5.31 - 6.00 5.31 - 6.50 5.31 - 6.00Weighted average fair value (per share) $5.88 - $9.23 $3.72 - $6.89 $4.87 - $5.13 (a)Expected volatility is based upon the Company’s historical volatility. (b)The expected term was determined based upon the underlying terms of the awards and the category and employment history of employee award recipient. Using these assumptions, the fair value of the stock options granted during the years ended December 31, 2021, 2020, and 2019 was $3,239, $5,310, and $952, respectively, which will be amortized as stock-based compensation expense over the vesting period of the options. Stock Award Granted: On September 14, 2020, the Company issued and granted to the Executive Chairman a stock award of 244 shares under the 2015 Plan, which vested immediately. The fair value of the stock award was calculated as of the date of grant using the closing market price. The grant date fair value of the stock award granted during the year ended December 31, 2020 was $3,314, which was immediately recognized to selling, general and administrative expenses. Market Condition Restricted Shares Granted: On May 28, 2021, the Company issued and granted to the Executive Chairman a restricted stock award of 500 restricted shares under the 2015 Plan, of which 500 restricted shares will vest if, on or before May 28, 2024, the Fair Market Value (as defined in the Plan) of the Company’s common stock shall have equaled or exceeded $35.00 per share for twenty consecutive trading days. For computing the fair value of the restricted shares with a market condition, the fair value of the restricted stock award grant has been estimated as of the date of grant using the Monte-Carlo pricing model with the assumptions below. On August 27, 2020, the Company issued and granted to an employee a restricted stock award of 100 restricted shares under the 2015 Plan, of which 100 restricted shares will vest if, on or before August 27, 2023, the Fair Market Value (as defined in the Plan) of the Company’s common stock shall have equaled or exceeded $15.00 per share for twenty consecutive trading days. For computing the fair value of the 100 restricted shares with a market condition, the fair value of the restricted stock award grant has been estimated as of the date of grant using the Monte-Carlo pricing model with the assumptions below. During the year ended December 31, 2021, the market-based condition was met and the restricted shares became fully vested. On January 7, 2019, the Company issued and granted to an employee a restricted stock award of 350 restricted shares under the 2015 Plan, that will vest as follows: (A) the stock award will vest and become nonforfeitable if, on or before January 7, 2024, the closing price of the Company’s common stock shall have equaled or exceeded $15.00 per share for twenty consecutive trading days (such 20th day being the “Price Trigger Date”); and (B) once the Price Trigger Date occurs, (i) 117 shares of the Company’s common stock shall vest on each of the first and second anniversary of the Price Trigger Date; and (ii) 116 shares of the Company’s common stock shall vest on the third anniversary of the Price Trigger Date. For computing the fair value of the 350 restricted shares with a market condition, the fair value of each restricted stock award grant has been estimated as of the date of grant using the Monte-Carlo pricing model with the assumptions below. During the year ended December 31, 2021, the market-based condition was met and the Price Trigger Date occurred. On January 7, 2019, the Company issued and granted to an employee a restricted stock award of 150 restricted shares under the 2015 Plan, that will vest as follows: (A) the stock award will vest and become nonforfeitable if, on or before January 7, 2024, the closing price of the Company’s common stock shall have equaled or exceeded $15.00 per share for twenty consecutive trading days (such 20th day being the Price Trigger Date); and (B) once the Price Trigger Date occurs, the shares shall equally vest on each of the first, second, third and fourth anniversary of the Price Trigger Date. For computing the fair value of the 150 restricted shares with a market condition, the fair value of each restricted stock award grant has been estimated as of the date of grant using the Monte-Carlo pricing model with the assumptions below. During the year ended December 31, 2021, the market-based condition was met and the Price Trigger Date occurred. May 28, 2021 August 27, 2020 January 7, 2019 Number issued 500 100 500Vesting period $35.00 stock price target $15.00 stock price target $15.00 stock price targetGrant price (per share) $23.69 $12.72 $10.21Dividend yield 0.42% 0.79% 0.0%Expected volatility 42.3% 41.1% 42.4%Risk-free interest rate 0.30% 0.19% 2.53%Expected term (years) 1.05 0.52 4.28 - 5.28Weighted average fair value (per share) $14.46 $9.91 $7.92 Using these assumptions, the fair value of the market condition restricted stock awards granted on May 28, 2021, August 27, 2020, and January 7, 2019 were approximately $7,230, $991, and $3,753, respectively. The total non-cash stock compensation expense related to stock options and restricted stock awards recorded by the Company was as follows: Year Ended December 31, 2021 2020 2019 Restricted stock awards$ 5,241 $ 1,488 $ 1,058Stock options 4,236 1,989 1,891Stock awards - 3,314 -Total $ 9,477 $ 6,791 $ 2,949 For the years ended December 31, 2021, 2020, and 2019, stock-based compensation costs were classified as selling, general and administrative expense. A summary of changes in outstanding options and restricted stock awards during the year ended December 31, 2021 is as follows: Options Weighted Average Exercise Price Aggregate Intrinsic Value Restricted Stock AwardsOutstanding at December 31, 2020 3,901 $ 9.30 $ 23,802 600 Granted 500 16.93 500Exercised or vested (222) 8.13 (100)Expired - - -Cancelled - - -Forfeited (38) - -Outstanding at December 31, 2021 4,141 $ 10.27 $ 72,265 1,000 Options exercisable at December 31, 2021 2,625 8.56 $ 50,290 The following table summarizes the exercise price range, weighted average exercise price, and remaining contractual lives by significant ranges for options outstanding and exercisable as of December 31, 2021: Remaining Life In Years Weighted AverageExercise Price RangeOutstanding Exercisable Outstanding Exercisable Exercise Price$4.38 - $23.47 4,041 2,587 5.8 5.7 $ 8.33$23.47 - $24.43 100 38 9.4 9.4 $ 24.43 4,141 2,625 6.1 5.9 $ 8.56 The intrinsic value of options exercised was $3,425, $2,006, and $607 during the years ended December 31, 2021, 2020, and 2019, respectively. The intrinsic value of restricted stock awards vested was $1,623, $0, and $3,252 during the years ended December 31, 2021, 2020, and 2019, respectively. Total fair value of options vested during the years ended December 31, 2021, 2020, and 2019 was $3,227, $1,722 and $1,610, respectively. Total fair value of restricted stock awards vested during the years ended December 31, 2021, 2020, and 2019 was $991, $0, and $919, respectively. The fair value of unvested restricted stock awards is determined based on the market price of our shares of common stock on the grant date or using the Monte-Carlo pricing model. As of December 31, 2021, there were 1,516 unvested stock options and unrecognized compensation cost of $6,261 related to unvested stock options, as well as 1,000 unvested restricted stock awards and unrecognized compensation cost of $4,419 related to unvested restricted stock awards. Unrecognized compensation cost of unvested stock options and restricted stock awards are expected to be recognized over the weighted average period of 1.8 years and 0.8 years, respectively. |