STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

STOCK-BASED COMPENSATION

19. STOCK-BASED COMPENSATION

The Company provides stock-based compensation to directors, employees and consultants under the 2021 Stock Incentive Plan, which was approved by stockholders on August 13, 2021 at the 2021 Annual Meeting of Stockholders and which reserved 7,500,000 shares of common stock for grant of awards under the plan.

Options granted under the plan have an exercise price equal to or greater than the fair value of the underlying common stock at the date of grant and become exercisable based on a vesting schedule determined at the date of grant. Typically, options granted generally become fully vested after four years. Any options that are forfeited or cancelled before expiration become available for future grants. The options expire between 5 and 10 years from the date of grant. Restricted stock awards granted under the plan are subject to a vesting period determined at the date of grant. As of December 31, 2021, an aggregate of 2,841,699 shares of the Company’s common stock were available for future grant.

The options outstanding as of December 31, 2021, have been classified by exercise price, as follows:

Outstanding							Exercisable
			Weighted
			Average		Weighted				Weighted
			Remaining		Average				Average
Exercise	Number		Contractual		Exercise		Number		Exercise
Price	Outstanding		Life (Years)		Price		Exercisable		Price
$2.15 - $2.62		3,395,000		9.75	$	2.35		266,152	$	2.51
$480 - $560		894		3.95	$	537.34		814	$	535.12
$1,208 - $1,352		25		2.25	$	1,336.00		25	$	1,336.00
$2.15 - $1,352		3,395,919		9.75	$	2.50		266,991	$	4.26
Issuances outside of the Plan
1.79		850,000		8.72	$	1.79		708,221	$	1.79
$2.46 - $2.55		2,150,000		9.33	$	2.54		-		-
$1.79 - $2.55		3,000,000		9.16	$	2.33		708,221	$	1.79
Total Options
$1.79 - $1,352		6,395,919		9.47	$	2.42		975,212	$	2.47

The total stock-based compensation expense related to stock options and stock awards issued to the Company’s employees, consultants and directors, included in reported net loss for the year ended December 31, 2021 and 2020, was comprised as follows:

	Year Ended December 31,
	2021		2020
General and administrative	$	7,750,000	$	1,106,000
Total stock-based compensation	$	7,750,000	$	1,106,000

A summary of option activity under the Company’s stock option plans as of December 31, 2021 and 2020, and changes during the years ended are as follows:

		Outstanding Options
				Weighted
			Weighted	Average
	Shares		Average	Remaining	Aggregate
	Available	Number	Exercise	Contractual	Intrinsic
	for Grant	of Options	Price	Life (years)	Value
January 1, 2020	103,105	1,388	$636	6.33	$0
Restricted stock awards	(96,875)	—
Forfeited	463	(463)	$781
January 1, 2021	6,693	925	$564	4.87	$0
Authorized	7,500,000
Stock options granted	(3,395,000)	3,395,000	$2.35
Restricted stock awards	(1,270,000)	—
Forfeited	6	(6)	$1,352
December 31, 2021	2,841,699	3,395,919	$2.52	9.75	$0

As of December 31, 2021, there was $11.6 million of unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under the plan. That cost is expected to be recognized over a weighted average period of 2.1 years.

Enertec Stock-Based Compensation

On December 31, 2020, Enertec issued its Chief Executive Officer a warrant to purchase 27,889 shares of Enertec common stock. The stock-based compensation expense related to the warrant included in reported net loss for the year ended December 31, 2020 was $813,405, based on the estimated fair value of the warrants on the date of issuance.

GWW Stock-Based Compensation

On May 25, 2021, GWW issued its executives options to purchase an aggregate total of 100,000 shares of GWW Class A common stock, at an exercise price per share of $14.64. The options vest over a four-year period. Additionally, the executives were granted a restricted stock award to acquire an aggregate of 50,000 shares of GWW Class A common stock, vesting annually over a three-year term. The stock-based compensation expense related to the options included in reported net loss for the year ended December 31, 2021 was $629,000, based on the estimated fair value of the options on the date of issuance. As of December 31, 2021, there was $429,000 of unrecognized compensation cost related to non-vested stock-based compensation arrangements with Messrs. Read and Long. That cost is expected to be recognized over a weighted average period of 2.4 years.