Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation Plan

Stock-Based Compensation Plan
6 Months Ended
Jun. 30, 2022
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 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. 

Options Granted:

During the six months ended June 30, 2022, the Company issued stock options for an aggregate of 428 shares under the 2015 Plan to directors and employees of the Company. Of the 428 options, 343 vest and become exercisable over a period of three years, 75 vest in four equal consecutive quarterly tranches from the date of grant and the remaining 10 vest immediately. All of the issued stock options 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:

Options Granted During the Six Months Ended June 30, 2022

Number of options



Option vesting period

1 - 3 Years


Grant price (per share)

$20.21 - $27.65


Dividend yield

0.36% - 0.49%


Expected volatility (a)

38.6% - 40.8%


Risk-free interest rate

1.46% - 2.95%


Expected life (years) (b)

5.31 - 6.00


Weighted average fair value (per share)

$7.95 - $10.41


(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.

The grant date fair value of the stock options granted during the six months ended June 30, 2022 was $3,564, which will be recognized over the vesting period of the options.

Market Condition Restricted Shares Granted:

On March 4, 2022, the Company issued and granted to certain employees restricted stock awards of 700 restricted shares under the 2015 Plan, of which 700 restricted shares will vest if, on or before March 4, 2032, the Fair Market Value (as defined in the Plan) of the Company’s common stock shall have equaled or exceeded $50.00 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 following assumptions:

March 4, 2022

Number issued


Market condition vesting requirement

$50.00 stock price target

Price on date of grant (per share)


Dividend yield


Expected volatility


Risk-free interest rate


Weighted average fair value (per share)


Using these assumptions, the fair value of the market condition restricted stock awards granted on March 4, 2022, was approximately $10,761 and the expected term was 4.15 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 June 30, 2022 and 2021 was $3,555 and $1,826, respectively, and for the six months ended June 30, 2022 and 2021 was $6,922 and $3,350, respectively. For the three and six months ended June 30, 2022 and 2021, the majority of stock-based compensation costs were classified as selling, general and administrative expenses.

As of June 30, 2022, there were 1,615 unvested stock options and unrecognized compensation cost of $7,123 related to unvested stock options, as well as 1,546 unvested restricted stock awards and unrecognized compensation costs of $10,781 related to unvested restricted stock awards.