Common Stock and Stock Options

9 Months Ended

Sep. 30, 2022

Common Stock and Stock Options

Common Stock and Stock Options

Note 4.  Common Stock and Stock Options

Stock based compensation cost for all stock awards is based on the grant date fair value and recognized over the required service (vesting) period. Noncash stock-based compensation expense was $8,670 for the three months ended September 30, 2022, and 2021. Noncash stock-based compensation expense was $40,642 and $39,233 for the nine months ended September 30, 2022, and 2021, respectively.

Unrecognized compensation expense was $2,758 as of September 30, 2022 and will be recognized through the second quarter of 2023. There was no tax benefit recorded for this compensation cost as the expense relates to incentive stock options that do not qualify for a tax deduction until, and only if, a qualifying disposition occurs.

The non-employee Board members received compensation of 6,550 and 7,605 aggregate shares of common stock of the Company during the nine months ended September 30, 2022 and 2021, respectively. The stock had an aggregate value of $22,470 and $22,475 for the nine months ended September 30, 2022 and 2021, respectively, and was recorded as non-cash stock compensation expense in the financial statements.

Employees received compensation of 4,500 and 4,804 aggregate shares of common stock of the Company during the nine months ended September 30, 2022 and 2021, respectfully. These shares had an aggregate value of $14,625 and $13,211 and was recorded as non-cash stock compensation expense in the financial statements for the nine months ended September 30, 2022 and 2021, respectively. In addition, during the nine months ended September 30, 2021, a total of 30,181 stock options were exercised by management.

The cumulative status of options granted and outstanding at September 30, 2022, and December 31, 2021, as well as options which became exercisable in connection with the Company’s stock option plans is summarized as follows:

Employee Stock Options

		Weighted
		Average
	Stock	Exercise
	Options	Price
Outstanding at January 1, 2021	76,037	$	1.03
Exercised	(34,733)		1.00
Outstanding at December 31, 2021	41,304	$	1.05
Exercised	—		—
Outstanding at September 30, 2022	41,304	$	1.05
Options exercisable at December 31, 2021	27,418	$	0.95
Options exercisable at September 30, 2022	34,361	$	1.01

Note 4.  Common Stock and Stock Options (continued)

Exercise prices for options ranged from $0.84 to $1.25 at September 30, 2022. The weighted average option price for all options outstanding at September 30, 2022, was $1.05 with a weighted average remaining contractual life of 3.9 years.