STOCK-BASED COMPENSATION PLANS

3 Months Ended

Mar. 31, 2024

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS

(10)   STOCK-BASED COMPENSATION PLANS

In June 2017, our stockholders approved the 2017 Stock Incentive Plan (the “2017 Stock Plan”) with a maximum of 5,500,000 shares reserved for issuance. Awards permitted under the 2017 Stock Plan include: Stock Options and Restricted Stock. Awards issued under the 2017 Stock Plan are at the discretion of the Board of Directors. As applicable, awards are granted with an exercise price equal to the closing price of our common stock on the date of grant and generally vest over four years. Restricted Stock Awards are issued to the recipient upon grant and are not included in outstanding shares until such vesting and issuance occurs.

During the three months ended March 31, 2024 and 2023, no stock option awards were granted under the 2017 Stock Plan. At March 31, 2024, the Company had 0.3 million stock options outstanding and 0.3 million exercisable under the following plans:

	Outstanding Number of Options	Exercisable Number of Options
	(in thousands)	(in thousands)
Plan Category
2005 Stock Option Plan	1	1
2017 Stock Option Plan	341	341
Total	342	342

During the three months ended March 31, 2024, 67,000 shares of restricted stock were granted under the 2017 Stock Plan. During the three months ended March 31, 2023, 62,000 shares of restricted stock were granted to the Board of Directors and management under the 2017 Stock Plan. The fair market value of restricted shares for share-based compensation expensing is equal to the closing price of our common stock on the date of grant. The vesting on restricted stock awards typically occur quarterly over three years for the Board of Directors and quarterly or annually over two to four years for management.

The following summarizes stock-based compensation expenses recorded in the condensed consolidated statements of income (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Cost of Revenue	$	8	$	8
Sales and marketing expense		160		61
General, and administrative		566		238
Total stock-based compensation expense	$	734	$	307

The Company received proceeds of $0.1 million related to option exercises during the three months ended March 31, 2024 and 2023.

A summary of stock option activity under all equity compensation plans for the three months ended March 31, 2024, is presented below:

				Weighted-
		Weighted-		Average	Aggregate
	Number of	Average		Remaining	Intrinsic
	Shares	Exercise		Contractual	Value
	(in thousands)	Price		Term (Years)	(in thousands)
Outstanding at December 31, 2023	349	$	1.82	4.12	$	3,163
Granted	—	$	—	—		—
Forfeited	—	$	—	—		—
Exercised	(7)	$	2.46	—		—
Outstanding at March 31, 2024	342	$	1.81	3.85	$	3,614
Exercisable at March 31, 2024	342	$	1.81	3.85	$	3,614

A summary of restricted stock award activity under all equity compensation plans for the three months ended March 31, 2024, is presented below:

	Number of
	Shares	Weighted Average
	(in thousands)	Grant Date Fair Value
Outstanding at December 31, 2023	502	$	10.73
Granted	67		11.68
Forfeited	(3)		12.55
Vested	(65)		12.09
Outstanding at March 31, 2024	501	$	10.73

As of March 31, 2024, the Company had approximately $4.4 million of unrecognized compensation expense related to stock options and restricted stock awards that will be recognized over a weighted average period of approximately 2.3 years.