STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2023

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

NOTE 15 – STOCK-BASED COMPENSATION

On May 13, 2021, the Company made effective the 2021 Omnibus Incentive Plan (the “Plan”) for purpose of attracting and retaining employees, consultants and directors of the Company and its affiliates by providing each the opportunity to acquire an equity interest in the Company or other incentive compensation in order to align the interests of such individuals with those of the Company’s stockholders. The Plan provides for a maximum number of shares to be issued, limitations of shares to be delivered for incentive stock options and a maximum compensation amount for any non-employee member of the board of directors, among other provisions. The form of grants under the Plan includes stock options, stock appreciation rights, restricted stock and RSUs. For the three months ended March 31, 2023 and 2022, stock-based compensation expense was $876,000 and $0, respectively.

The following table summarizes the activities for unvested Company RSUs granted to employees and Board of Directors members during the three months ended March 31, 2023:

	Unvested Restricted Stock Units
	Number of Shares		Weighted-Average Grant-Date Fair Value
Unvested as of December 31, 2022		1,931,187	$	2.87
Granted		4,920,000	$	0.36
Vested		(20,232)	$	1.73
Forfeited/canceled		—	$	-
Unvested as of March 31, 2023		6,830,955	$	1.07

RSUs granted as set out in the table above include RSUs representing 2,940,000 shares with vesting based on market conditions tied to the Company’s stock price achieving a stated price for 45 consecutive trading days. The requisite service period for grants, including derived service periods for RSUs with market conditions, is between one and three years. As of March 31, 2023, there was $5.1 million of unrecognized compensation cost related to unvested employee and Board of Directors members RSUs. The amount is expected to be recognized over a weighted average period of 0.9 years.

The following table summarizes the activities for unvested Company RSUs granted to non-employees, excluding Board of Directors members, during the three months ended March 31, 2023:

	Unvested Restricted Stock Units
	Number of Shares		Weighted-Average Grant-Date Fair Value
Unvested as of December 31, 2022		82,645	$	1.21
Granted		3,970,564	$	0.54
Vested		(70,423)	$	0.71
Forfeited/canceled		—	$	-
Unvested as of March 31, 2023		3,982,786	$	0.55

RSUs granted as set out in the table above include RSUs representing 960,000 shares with vesting based on market conditions tied to the Company’s stock price achieving a stated price for 45 consecutive trading days.  The requisite service period for grants, including derived service periods for RSUs with market conditions, is between one and three years.  As of March 31, 2023, there was $2.1 million of unrecognized compensation cost related to unvested non-employee, excluding Board of Director members, RSUs.  The amount is expected to be recognized over a weighted average period of 1.2 years.