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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation In January 2019, the Company’s board of directors adopted the 2019 Stock Incentive Plan (the “Plan”). A total of 2,000,000 shares of common stock were authorized and reserved for issuance under the Plan in the form of incentive or
nonqualified stock options and stock awards. A committee appointed by the board of directors of the Company determines the terms and conditions of each grant under the Plan. Employees, directors, and consultants are eligible to receive stock options and stock awards under the Plan. The aggregate number of shares available under the Plan and the number of shares subject to outstanding options may be increased or decreased by the Plan administrator to reflect any changes in the outstanding common stock by reason of any recapitalization, reorganization, reclassification, stock split, reverse split, combination of shares, exchange of shares, stock dividend or other distribution payable in capital stock or similar transaction.
The exercise price of incentive stock options may not be less than the fair market value of the common stock at the date of grant. The exercise price of incentive stock options granted to individuals that own greater than 10% of the voting stock may not be less than 110% of the fair market value of the common stock at the date of grant.
The term of each incentive and nonqualified option is based upon conditions as determined by the option agreement; however, the term can be no more than ten years from the date of the grant. In the case of an incentive stock option granted to an optionee who, at the time the option is granted, owns stock representing more than 10% of the voting power of all classes of stock of the Company or any parent or subsidiary, the term of the option will be a shorter term as provided in the option agreement, but not more than five years from the date of the grant.

As of December 31, 2022, a total of 1,322,349 shares of common stock was available for further award grants under the Plan. For the years ended December 31, 2022 and 2021, the Company recognized a total of $2,047,000 and $2,026,000 in stock-based compensation expense, respectively. The restricted stock units and stock options granted prior to April 15, 2021 were subjected to vesting conditions contingent upon the closing of an initial public offering of the Company. Such awards began vesting on April 15, 2021 when the Company completed its initial public offering. The Company recognizes stock-based compensation over the vesting period, which is generally 3 years for both the restricted stock units and stock options. The Company recognized a net tax benefit of $89,000 and $237,000 from compensation expense related to stock options and restricted stock units during the years ended December 31, 2022 and 2021, respectively.
Stock Options
A summary of the Company’s stock option activity under the Plan for the years ended December 31, 2022 and 2021 is as follows:
Number of Options
Weighted-Average Exercise Price
Weighted-Average Remaining Contract Life (In Years)
Aggregate Intrinsic Value
Outstanding at December 31, 202015,000$10.00 8.0$— 
Granted430,00018.86 
Exercised(10,000)10.00 $116,000 
Outstanding at December 31, 2021435,000 $18.76 9.7$632,000 
Granted 50,000 16.53 
Exercised (5,000)10.00 
Forfeited(60,000)18.86 
Outstanding at December 31, 2022420,000 $18.58 8.8$— 
Expected to vest at December 31, 2022420,000 $18.58 8.8$— 
Exercisable at December 31, 2022123,333 18.86 8.8$— 
The weighted-average grant-date fair value of stock options granted during the years ended December 31, 2022 and 2021 was $5.18 and $5.74 respectively. At December 31, 2022, total remaining stock-based compensation cost for unvested stock options under the Plan was approximately $792,000. The cost is expected to be recognized over a weighted-average period of 1.4 years.
The aggregate intrinsic value is calculated by subtracting the exercise price of the option from the closing price of the Company’s common stock on December 31, 2022, multiplied by the number of shares per each option.
The assumptions that were used to calculate the grant date fair value of the Company’s stock option grants for the year ended December 31, 2022 were as follows:
Year Ended December 31,
20222021
Risk-free interest rate1.70 %1.22 %
Expected term (years)6.25 years6.25 years
Volatility30 %30 %
Dividend yield0.40 %0.40 %
Restricted Stock Units
The Company issued restricted stock units to its employees. The following table summarizes the unvested restricted stock units for the years ended December 31, 2022 and 2021:
Number of Shares Outstanding
Weighted Average Grant Date Fair Value
Unvested at December 31, 2020256,000$10.00 
Granted40,00017.98 
Vested(84,917)11.55 
Forfeited(52,083)11.14 
Unvested at December 31, 2021159,000 $11.08 
Granted 9,900 16.69 
Vested(75,588)10.72 
Forfeited (11,166)15.54 
Unvested at December 31, 202282,146 $11.47 
The weighted-average grant-date fair value of restricted stock units granted during the years ended December 31, 2022 and 2021 was $16.69 and $17.98 respectively. The total fair value of restricted stock units, as of their respective vesting date, during the years ended December 31, 2022 and 2021 was $1,156,000 and $1,884,000, respectively. In September 2021, the Company’s board of directors accelerated the vesting of the Company’s restricted stock units, with each tranche of award vesting 6 months earlier than the original vesting date. The acceleration of the restricted stock units vesting was treated as an award modification under ASC 718, resulting in an additional stock-based compensation expense of approximately $719,000 recognized during the year ended December 31, 2021. At December 31, 2022, total remaining stock-based compensation cost for unvested restricted stock units was approximately $327,000. The cost is expected to be recognized over a weighted-average period of 0.9 years.