STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2021

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

NOTE 3 – STOCK-BASED COMPENSATION

There were no options granted or issued during the nine-month period ended September 30, 2021.

The following is a summary of the changes in outstanding options during the nine-month period ended September 30, 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	6,180		7.61	—		—
Expired	16,199		4.37	—		—
Outstanding, September 30, 2021	178,499	$	6.76	3.7	$	83,910
Vested, September 30, 2021	175,831	$	6.73	3.6	$	83,910

NOTE 3 – STOCK-BASED COMPENSATION - (Continued)

		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, September 30, 2021	2,668	$	4.60

On April 22, 2021, the Company’s Board of Directors (the “Board”) approved the amendment and restatement of the P&F Industries, Inc. 2012 Stock Incentive Plan, (the “2012 Plan”) to be renamed the P&F Industries, Inc. 2021 Stock Incentive Plan (the “2021 Plan”) following the approval and recommendation of the Compensation Committee of the Board (the “Compensation Committee”). The 2021 Plan amends and restates the 2012 Plan in its entirety and, among other things, incorporates the following key changes: (i) it increases the aggregate share reserve by an additional 175,000 shares for a total share reserve of 500,000 shares; (ii) it limits the aggregate amount of stock-based and cash-based awards to any non-employee director with respect to any fiscal year for service to the Board at $300,000 (or $450,000 for a non-employee director serving in a lead role); and (iii) extends the term from April 20, 2022 to April 22, 2031. The amendment and restatement was approved by the Board and was approved by the Company’s shareholders during its 2021 Annual Meeting of Stockholders held on May 26, 2021. As a result of the foregoing, the remaining number of shares of Common Stock available for issuance under the 2021 Plan at September 30, 2021, was 203,037.

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.