NOTE 3 – STOCK-BASED COMPENSATION

There were no options granted or issued during the three-month period ended March 31, 2021.

The following is a summary of the changes in outstanding options during the three-month period ended March 31, 2021:


		Weighted		Weighted average
		average		remaining	Aggregate
		exercise		contractual life	intrinsic
	Option shares	price		(years)	value
Outstanding, January 1, 2021	200,878	$	6.59	4.1	$	85,663
Granted	—		—	—		—
Exercised	—		—	—		—
Forfeited	—		—	—		—
Expired	—		—	—		—
Outstanding, March 31, 2021	200,878	$	6.59	3.8	$	118,716
Vested, March 31, 2021	198,210	$	6.56	3.8	$	118,716


		Weighted
		average grant-
	Option shares	date fair value
Non-vested options, January 1, 2021	5,334	$	4.60
Granted	—		—
Vested	(2,666)		4.60
Forfeited	—		—
Non-vested options, March 31, 2021	2,668	$	4.60

The remaining number of shares of Common Stock available for issuance under the P&F Industries, Inc. 2012 Stock Incentive Plan (the “2012 Plan”) as of March 31, 2021 was 21,158. At March 31, 2021, there were 185,378 options outstanding issued under the 2012 Plan and 15,500 options outstanding issued under the 2002 Stock Incentive Plan.

Restricted Stock

On February 16, 2021, the Company granted 25,000 restricted shares of its Common Stock to its Chief Financial Officer. The Company determined that the fair value of these shares was $6.36 per share, which was the closing price of the Company’s Common Stock on the date of the grant. The Company will ratably amortize over a five-year vesting period, the total non-cash compensation expense of approximately $159,000, or $32,000 per annum, to selling, general and administrative expenses.

On May 20, 2020, the Company granted 1,250 restricted shares of its Common Stock to each non-employee member of its Board of Directors, totaling 6,250 restricted shares. The Company determined that the fair value of these shares was $5.14 per share, which was the closing price of the Company’s Common Stock on the date of the grant. These shares cannot be traded earlier than the first anniversary of the grant date. The Company will ratably amortize the total non-cash compensation expense of approximately $32,000 to selling, general and administrative expenses through May 2021.