Stock-based Compensation

6 Months Ended

Jun. 30, 2024

NOTE 8 – Stock-based Compensation

Prior to June 21, 2023, the Company issued stock-based compensation awards to its directors and officers under the 2018 Long Term Incentive Plan (“LTIP”) which allowed the grant of non-qualified and incentive stock options, stock appreciation rights, full value awards and cash incentive awards. The maximum number of shares available to be awarded under the LTIP was 161,638 shares.

On June 21, 2023, stockholders approved an Amendment and Restatement of the 2018 Long Term Incentive Plan (“Amended and Restated LTIP”) which allows the issuance of 487,500 additional shares and brought the number of shares that may be issued under the Amended and Restated LTIP to 649,138 shares.

Stock-based compensation is recognized on a straight-line basis over the vesting period. During the three months ended June 30, 2024 and 2023, the Company recorded $38 thousand and $51 thousand of stock-based compensation expense, respectively. During the six months ended June 30, 2024 and 2023, the Company recorded $115 thousand and $90 thousand of stock-based compensation expense, respectively. During the three months ended June 30, 2024 and 2023, the Company recorded $96 thousand and $0 thousand of director stock compensation expense, respectively, which was determined using the fair value of the stock on the dates of the awards. During the six months ended June 30, 2024 and 2023, the Company recorded $96 thousand and $95 thousand, respectively, of director stock compensation expense, which was determined using the fair value of the stock on the dates of the awards.

As of June 30, 2024, 269,111 shares had been awarded under the Amended and Restated LTIP and 380,027 shares were available to be awarded. The following tables present stock award activity during the three and six months ended June 30, 2024 and 2023:

	Three months ended
	June 30, 2024			June 30, 2023
	(In thousands)
Outstanding at the beginning of the period		225,047			37,922
Granted during period		19,832			92,700
Forfeited during period		(27,149	)		(977	)
Vested during period		(40,215	)		–
Outstanding at the end of the period		177,515			129,645

	Six months ended
	June 30, 2024			June 30, 2023
	(In thousands)
Outstanding at the beginning of the period		111,723			52,953
Granted during period		145,890			101,930
Forfeited during period		(27,149	)		(1,360	)
Vested during period		(52,949	)		(23,878	)
Outstanding at the end of the period		177,515			129,645

No stock options were granted, exercised or expired during the three and six months ended June 30, 2024 or 2023. During the three and six months ended June 30, 2024, 18,750 stock options were forfeited.

Options outstanding and exercisable at June 30, 2024 were as follows:

Outstanding							Exercisable
Number Outstanding		Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Aggregate Intrinsic Value		Number Outstanding		Weighted Average Exercise Price		Aggregate Intrinsic Value
	12,500	1.65 years	$	12.96	$	–		12,500	$	12.96	$	–

The Company did not record any stock-based compensation expense related to stock options during the three and six months ended June 30, 2024 and 2023.

All common stock share amounts above have been retroactively adjusted, as applicable, for the 1-for-8 reverse stock split effective November 1, 2023. See Note 1.