Note 18: Equity Incentive Plan

In May 2017, the Company’s stockholders approved the Cincinnati Bancorp 2017 Equity Incentive Plan (the “2017 Plan”). The 2017 Plan authorizes the issuance or delivery to participants of up to 117,940 shares of the Company’s common stock pursuant to the grants of restricted stock awards, restricted stock unit awards, incentive stock options, and non-qualified stock options. Of this number, the maximum number of shares of Company common stock that may be issued under the 2017 Plan pursuant to the exercise of stock options is 84,243 shares and the maximum number of shares of Company common stock that may be issued as restricted stock awards or restricted stock units is 33,697 shares. Stock options awarded to employees may be incentive stock options or non-qualified stock options. Shares subject to award under the 2017 Plan may be authorized but unissued shares or treasury shares. The 2017 Plan contains annual and lifetime limits on certain types of awards to individual participants.

Awards may vest or become exercisable only upon the achievement of performance measures or based solely on the passage of time after award. Stock options and restricted stock awards provide for accelerated vesting if there is a change in control (as defined in the 2017 Plan).

In June 2017, the Company granted stock options for 79,187 shares to members of the Board of Directors and certain members of management. Options granted in June 2017 have an exercise price of $9.55, as determined on the grant date and expire ten years from the grant date.


				Weighted-Average
				Remaining	Aggregate
		Weighted-Average		Contractual Term	Intrinsic
	Shares	Exercise Price		(Years)	Value
December 31, 2019
Outstanding, beginning of period	79,187	$	9.55	8.50	$	194,008
Granted	—		—
Exercised	(2,022)	$	9.55
Forfeited	(4,718)	$	9.55

Outstanding, end of period	72,447	$	9.55	7.50	$	521,618

Exercisable, end of period	28,979	$	9.55	7.50	$	208,647

December 31, 2018
Outstanding, beginning of period	79,187	$	9.55	9.50	$	69,685
Granted	—		—
Exercised	—		—
Forfeited	—		—

Outstanding, end of period	79,187	$	9.55	8.50	$	194,008

Exercisable, end of period	15,837	$	9.55	8.50	$	38,802

In June 2017, the Company awarded 33,697 restricted shares to members of the Board of Directors and certain members of management. The restricted stock awards have a five year vesting period. Shares of restricted stock granted to employees under the 2017 Plan are subject to vesting based on continuous employment for a specified time period following the date of grant. During the restricted period, the holder is entitled to full voting rights and dividends, thus are considered participating securities.

Total compensation expense recognized in the income statement for share-based payment arrangements was $103,152 for each of the years ended December 31, 2019 and 2018.

As of December 31, 2019, there was approximately $257,900 of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted-average period of 2.5 years.