STOCK- BASED COMPENSATION

3 Months Ended

Mar. 31, 2022

STOCK- BASED COMPENSATION [Abstract]

STOCK-BASED COMPENSATION

8.      STOCK-BASED COMPENSATION

The 2017 Equity Compensation Plan (the “2017 Plan”) has a maximum number of 750,000 shares reserved for issuance. The purpose of the 2017 Plan is to promote the success of the Company by providing greater incentives to employees, non-employee directors, consultants and advisors to associate their personal interests with the long-term financial success of the Company, including its subsidiaries, and with growth in stockholder value, consistent with the Company’s risk management practices.

A summary of stock option activity for the three months ended March 31, 2022 follows:

				Weighted
		Weighted		Average	Aggregate
		Average		Remaining	Intrinsic
		Exercise		Contractual	Value
	Shares	Price		Term	(in thousands)
Options outstanding, beginning of period	283,800	$	10.98	2.2	$	1,153
Expired	(2,000)		6.24
Options outstanding, end of period	281,800	$	11.01	1.9	$	834
Exercisable at end of period	281,800	$	11.01	1.9	$	834

There was no stock-based compensation expense associated with stock options for the three months ended March 31, 2022 and 2021. As of March 31, 2022, we do not have any unrecognized compensation expense associated with the stock options.

A summary of time vested restricted stock awards for 2022 follows:

		Weighted		Weighted
		Average		Average
		Grant-Date		Remaining
		Fair Value		Contractual
	Shares	Per Share		Term
Unvested restricted stock outstanding, beginning of period	98,050	$	14.58	3.3
Granted	48,658		13.85
Vested	(67,008)		14.19
Unvested restricted stock outstanding, end of period	79,700	$	14.15	3.1

Stock-based compensation expense for time vested restricted stock awards totaled $0.8 million and $0.5 million for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, unrecognized compensation expense associated with restricted stock awards was $1.0 million, which is expected to be recognized over a weighted average period of 3.1 years.

A summary of performance-based restricted stock units (the “Units”) for 2022 follows:

			Weighted	Weighted
			Average	Average
			Grant-Date	Remaining
			Fair Value	Contractual
	Shares		Per Share	Term
Unvested Units outstanding, beginning of period	59,335	$	15.00	4.0
Granted	—		—
Vested	—		—
Forfeited	—		—
Unvested Units outstanding, end of period	59,335	$	15.00	3.8

In September 2021, the Company issued 59,335 non-transferrable Units convertible, on a one-on-one basis, into shares of stock to eligible employees, granted pursuant to and subject to the provisions of the 2017 Plan.

These Units are subject to service and performance conditions. These Units vest based on the achievement of both conditions. Achievement of the performance condition will be determined at the end of the five-year performance period (the “Performance Period”) by evaluating the: 1) Company’s adjusted earnings per share compound annual growth measured for the Performance Period and 2) performance factor achieved. Payouts between performance levels will be determined based on straight line interpolation.

The Company did not recognize any stock-based compensation expense associated with these Units for the three months ended March 31, 2022 because it is not probable that these Units will vest. The grant date fair value of these Units was $15.00 per Unit. The potential unrecognized compensation expense associated with these Units is $1.3 million at March 31, 2022.