On June 22, 2018, the Company's stockholders adopted the FalconStor Software, Inc. 2018 Incentive Stock Plan (the "2018 Plan"). The 2018 Plan is administered by the Compensation Committee (the “Compensation Committee”) of the Company’s Board of Directors (the “Board”) and initially provided for the issuance of up to 1,471,997 shares of the Company's common stock upon the grant of shares with such restrictions as determined by the Compensation Committee to the employees and directors of, and consultants providing services to, the Company or its affiliates. In June 2021, the Company's stockholders approved an amendment to increase the number of shares of our common stock authorized and reserved for issuance under the 2018 Plan by 220,800 shares to a total of 1,692,797 shares. Exercise prices of the options are determined by the Compensation Committee, subject to the consent of Hale Capital. The vesting terms are performance based and determined by the Compensation Committee, subject to the consent of Hale Capital, based on various factors, including (i) the return of capital to the holders of the Series A Preferred Stock and the Company’s common stock in the event of a change of control, (ii) the repayment of the Company’s obligations under its senior secured debt, and (iii) the Company’s free cash flow.

The following table summarizes the 2018 Plan, which was the only plan under which the Company was able to grant equity compensation as of December 31, 2022:

Name of Plan

Shares
Authorized

Shares Available
for Grant

Shares
Outstanding

FalconStor Software, Inc. 2018 Incentive Stock Plan

1,692,797

241,899

1,316,933

The following table summarizes the Company’s equity plans that have terminated or expired but that still have equity awards outstanding as of December 31, 2022:


Name of Plan	Shares Available for Grant		Shares Outstanding
FalconStor Software, Inc., 2016 Incentive Stock Plan		—		2,250
FalconStor Software, Inc., 2006 Incentive Stock Plan		—		2,365

All outstanding options granted under the Company’s equity plans have terms of ten years.

A summary of the Company’s stock option activity for 2022 is as follows:


	Number of Options			Weighted Average Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value
Options Outstanding at December 31, 2021		5,690		$	110.10	3.28			—
Granted		—		$	—
Exercised		—		$	—
Forfeited		(1,075	)	$	193.59
Expired		—		$	—
Options Outstanding at December 31, 2022		4,615		$	98.29	2.67			—
Options Exercisable at December 31, 2022		4,615		$	98.29	2.67			—
Options Expected to Vest after December 31, 2022		—		$	—		—		—

The following table summarizes the share-based compensation expense for all awards issued under the Company’s stock equity plans in the following line items in the consolidated statements of operations:


	Year Ended December 31,
	2022	2021
Cost of revenue - Support and Service	$242	$1,656
Research and development costs	6,607	2,088
Selling and marketing	19,226	11,812
General and administrative	12,695	5,622
	$38,770	$21,178

The Company did not recognize any tax benefits related to share-based compensation expense during the years ended December 31, 2022 and 2021.

The Company has the ability to issue both restricted stock and restricted stock units. The restricted stock awards and restricted stock units are expensed at the fair value per share at date of grant for directors, officers and employees. A summary of the total stock-based compensation expense related to restricted stock units, which is included in the Company’s total share-based compensation expense for each respective year, is as follows:

A summary of the Company’s restricted stock activity for 2022 is as follows: Such restricted stock did not bestow any voting or dispositive power and is not deemed outstanding until they vest.


	Number of Restricted Stock Awards
Non-Vested at December 31, 2021		1,513,380
Granted		113,230
Vested		(37,365	)
Forfeited		(272,312	)
Non-Vested at December 31, 2022		1,316,933

Restricted stock units are fulfilled with new shares of common stock. The total intrinsic value of restricted stock for which the restrictions lapsed during the years ended was $41,102 and $93,043 for the years ended December 31, 2022 and 2021, respectively.

As of December 31, 2022, total unrecognized compensation costs for unvested restricted stock unit awards was $1,102,692, including $1,073,505 relating to performance-based awards. The performance condition for such awards was not deemed probable at grant dates or at December 31, 2022 and the cost related to such awards will begin to be recognized once the performance condition is deemed probable. The remaining amount of $29,187 relating to time-based awards is expected to be recognized over a weighted-average period of 0.7 years as of December 31, 2022.

As of December 31, 2022, the Company had 1,563,797 shares of common stock reserved for issuance upon the exercise or vesting of stock options and restricted stock.