Stock-Based Compensation

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

Plan Information

The 2015 Incentive Stock Plan (the “Plan”) provides for awards of stock options and restricted stock to officers, directors, key employees and consultants. In September 2022, at the Company's annual meeting of shareholders, the shareholders authorized an additional 1,000,000 shares of common stock be added to the Plan.

At December 31, 2022, 3,100,415 shares of common stock were reserved for stock award grants under the Plan.  Of these reserved shares, 1,072,304 shares were available for future grants.

Stock Options

As of September 30, 2021 there were 50,000 stock options with a weighted average exercise price of $1.28 per share and an aggregate intrinsic value of $54 thousand outstanding under the Plan. As of December 31, 2021, there were 50,000 stock options with a weighted average exercise price of $1.28 per share and an aggregate intrinsic value of $22 thousand outstanding under the Plan. There were 50,000 stock options exercised during the year ended December 31, 2022 with a weighted average exercise price of $1.28 per share and an aggregate intrinsic value of $47 thousand. As of December 31, 2022, no stock options remained outstanding.

Restricted stock awards

A summary of the Company's non-vested restricted share awards at December 31, 2022 and changes during the transition period of three months ended December 31, 2021 and the year ended December 31, 2022 is presented in the following table ($ in thousands):

	Shares	Fair Value
Non-vested at September 30, 2021	739,913	$	1,706
Granted	130,111	$	333
Vested	(112,390)	$	(230)
Forfeited	(20,000)	$	(41)
Non-vested at December 31, 2021	737,634	$	1,768
Granted	260,391	361
Vested	(354,634)	(857)
Forfeited	(111,666)	(256)
Non-vested at December 31, 2022	531,725	$	1,016

Compensation expense related to restricted stock recorded for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021 is as follows, in thousands:

	Year Ended		Three Months Ended		Year Ended
	December 31,		December 31,		September 30,
	2022		2021		2021
Fiscal year 2020 grant	$	36	$	37	$	450
Fiscal year 2021 grant	252		125		556
2021 Transition period grant	87		119		—
Fiscal year 2022 grant	195		—		—
Total restricted stock compensation expense	$	570	$	281	$	1,006

Valuation of time vesting restricted stock awards for all periods presented is equal to the quoted market price for the shares on the date of the grant. The Company amortizes the fair value of the restricted share awards, graded, over the vesting period of the awards.

The Company did not recognize a tax benefit for compensation expense recognized during the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021.

At December 31, 2022, unrecognized compensation expense related to non-vested stock-based compensation awards not yet recognized in the consolidated statements of operations was $0.4 million. That cost is expected to be recognized over a period of 2.50 years.