Stock-Based Compensation

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

8.STOCK-BASED COMPENSATION

The LINKBANCORP, Inc. 2019 Equity Incentive Plan (the "2019 Plan") authorized the issuance or delivery to participants of up to 450,000 shares of LINKBANCORP common stock pursuant to grants of incentive and non-statutory stock options. The Plan is administered by the members of LINKBANCORP’s Compensation Committee (the "Committee"). Unless the Committee specified a different vesting schedule, awards under the Plan were granted with a vesting rate of 20 percent per year. Vesting may be accelerated under certain conditions or at the discretion of the Committee at any time. Employees and directors of LINKBANCORP or its subsidiaries were eligible to receive awards under the plan, except that nonemployees were not granted incentive stock options. Stock options are either “incentive” stock options or “nonqualified” stock options. Incentive stock options have certain tax advantages and must comply with the requirements of Section 422 of the Internal Revenue Code. The 2019 Plan was frozen such that no new awards would be granted under the 2019 Plan following receipt of shareholder approval of the LINKBANCORP, Inc. 2022 Equity Incentive Plan described within this footnote.

On May 26, 2022, the Company's shareholders approved the LINKBANCORP, Inc. 2022 Equity Incentive Plan (the "2022 Plan"). The 2022 Plan authorizes the issuance or delivery to participants of up to 475,000 shares of the Company's common stock pursuant to grants of restricted stock, restricted stock units, stock options, and non-qualified stock options. The 2022 Plan is administered by the members of LINKBANCORP’s Compensation Committee (the "Committee"). At least 95% of the awards under the 2022 Plan will vest no earlier than one year after the grant date.

The table below provides details of the Company's stock options at September 30, 2023.

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term in Years		Aggregate Intrinsic Value (in ‘000s)
Outstanding, December 31, 2022		490,000		$	10.11		7.0	$	33
Granted		60,000			7.00		9.9		—
Expired/terminated		(36,000	)		10.45		—
Exercised		—			—		—
Outstanding, September 30, 2023		514,000		$	9.72		7.0	$	—
Exercisable at period end		260,000		$	10.16		5.8	$	—

The exercise prices for options outstanding as of September 30, 2023 ranged from $7.00 to $14.50.

The table below provides details of the Company's restricted shares activity at September 30, 2023.

	Number of Shares		Average Market Price at Grant
Outstanding, December 31, 2022		—
Granted		87,000	$	7.00
Expired/terminated		—
Outstanding, September 30, 2023		87,000	$	7.00

The Company recognized stock-based compensation expense of $38 and $96 for the three and nine months ended September 30, 2023 and $19 and $59 for the three and nine months ended September 30, 2022, respectively. At September 30, 2023, the total unrecognized stock-based compensation costs totaled $200 and will be recognized ratably as expense through December 31, 2027.