Stockholders' Equity

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' EQUITY

Note 9 — Stockholders’ Equity

The Company has authorized 50,000,000 shares of common stock, of which 16,694,311 were issued and 16,617,274 were outstanding at December 31, 2021; 16,564,311 shares were issued and 16,491,103 were outstanding as of December 31, 2020.

Warrants

In 2016, investors in the Company’s initial public offering (the “IPO”), received three-year warrants to purchase 2,300,000 shares of common stock at an exercise price of $6.75 per share; the warrants were exercisable through June 8, 2019. In 2019, the Company entered into an amendment to the Warrant Agreement to extend the expiration date of the investor warrants from June 8, 2019 until June 8, 2020.

In addition, the underwriters of the IPO received four-year warrants to purchase up to 138,000 units, consisting of one share of common stock and one warrant to purchase one share of common stock. The warrants, with an exercise price of $6.75 per unit, expired on June 2, 2021.

The following table summarizes the Company’s warrant activity:

	Warrants
	Number of Warrants			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In Years)
Outstanding – December 31, 2019		2,032,187		$	6.75		0.51
Granted		—			—		—
Exercised		(83	)		—		—
Expired		(1,894,104	)		—		—
Outstanding – December 31, 2020		138,000		$	6.75		0.44
Exercisable – December 31, 2020		138,000		$	6.75		0.44
Granted		—			—		—
Exercised		—			—		—
Expired		(138,000	)		6.75		—
Outstanding – December 31, 2021		—		$	—		—
Exercisable – December 31, 2021		—		$	—		—

2016 and 2017 Equity Incentive Plans

The Company has limited the aggregate number of shares of common stock to be awarded under the 2016 Equity Incentive Plan to 397,473 shares. The Company has limited the aggregate number of shares of common stock to be awarded under the 2017 Equity Incentive Plan to 500,000 shares. In addition, unless the Compensation Committee specifically determines otherwise, the maximum number of shares available under the 2016 and 2017 Plans and the awards granted under those plans will be subject to appropriate adjustment in the case of any stock dividends, stock splits, recapitalizations, reorganizations, mergers, consolidations, exchanges or other changes in capitalization affecting our common stock.

On February 1, 2020, a total of 35,000 shares of restricted stock were issued to employees and were recorded at the fair value of $4.11 per share. The restricted shares vest 25% per year over a four-year vesting period and are being recognized as expense on a straight-line basis over the vesting period of the awards.

On July 21, 2021, a total of 130,000 shares of restricted stock were issued to employees and board members and were recorded at the fair value of $3.84 per share. The restricted shares vest 25% at grant date and 25% per year over a three-year vesting period and are being recognized as expense on a straight-line basis over the vesting period of the awards.

Restricted stock activity for the years ended December 31, 2021 and 2020 is summarized below:

Outstanding at	Restricted Stock			Weighted-  Average Grant Date Fair Value
December 31, 2019		80,417		$	5.70
Granted		35,000			4.11
Vested		(66,667	)		5.24
Forfeited		(11,250	)		8.58
December 31, 2020		37,500		$	4.17
Granted		130,000			3.84
Vested		(43,750	)		3.96
Forfeited		-			-
December 31, 2021		123,750		$	3.90

The Company recognizes forfeitures as they occur. The reduction of stock compensation expense related to the forfeitures was $0 for the years ended December 31, 2021 and 2020, respectively.

Unrecognized stock compensation expense was approximately $403 thousand as of December 31, 2021, which will be recognized over a weighted-average period of 2.26 years. The stock compensation expense was approximately $415 thousand and $386 thousand, for the years ended December 30, 2021 and 2020.

The following table summarizes the Company’s stock option activity:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term  (In Years)
Outstanding – December 31, 2019		229,334	$	5.55		8.07
Granted		—		—		—
Exercised		—		—		—
Expired		—		—		—
Outstanding – December 31, 2020		229,334	$	5.55		7.07
Exercisable – December 31, 2020		229,334		5.55		7.07
Granted		—		—		—
Exercised		—		—		—
Expired		—		—		—
Outstanding – December 31, 2021		229,334	$	5.55		6.07
Exercisable – December 31, 2021		229,334		5.55		6.07

The stock options had an intrinsic value of $382 thousand and $0 as of December 31, 2021 and December 31, 2020, respectively.

Treasury Stock

The Company accounts for purchases of treasury stock under the cost method with the cost of such share purchases reflected in treasury stock in the accompanying consolidated balance sheet. As of December 31, 2021 and 2020, the Company had 77,037 and 73,208 treasury shares, respectively.