Stock-Based Compensation

12 Months Ended

Dec. 31, 2021

17. Stock-Based Compensation

Long-term incentive plan

During 1995, we established the 1995 Long-Term Incentive Stock Option Plan (the “Plan”), which permits the granting of stock options (including incentive stock options and nonqualified stock options) stock appreciation rights, restricted or unrestricted stock awards, phantom stock, performance awards or any combination of these to employees, directors or consultants. The Plan was amended and restated effective April 22, 2016 and expires on April 21, 2026; the total number of shares that could be issued under the Plan is 7,500,000. As of December 31, 2021, 4,637,856 shares have been issued under the Plan, zero stock options and 1,595,665 restricted stock units (RSUs) were outstanding under the Plan, while 1,266,479 shares remain for future grants under the Plan.

We recognize compensation expense on a pro rata straight-line basis over the requisite service period for stock-based compensation awards with both graded and cliff vesting terms. We recognize the cumulative effect of a change in the number of awards expected to vest in compensation expense in the period of change. We have not capitalized any portion of its stock-based compensation. Our forfeiture rate is based on actuals.

During the years ended December 31, 2021 and 2020, we recognized $1.0 million and $0.4 million, respectively, of stock-based compensation expense under the fair value method. Accordingly, we recognized associated deferred income tax expense (benefits) of $111 thousand and $220 thousand before valuation allowance, respectively, during the years ended December 31, 2021 and 2020. During the years ended December 31, 2021 and 2020, there were no stock-based compensation expense related to the change in fair value of cash-settled RSUs, which we account for as a liability.

On February 23, 2022, we entered into a Securities Purchase Agreement with Lind Global Fund II LP (“Lind Global”), pursuant to which we issued to Lind Global a two-year, secured, interest-free convertible promissory note in the amount of $5.75 million (the “Convertible Note”) and a common stock purchase warrant to acquire 1,283,732 shares of our common stock (the “Warrant”) (See Note 24).

Restricted Stock Units

During the years ended December 31, 2021 and 2020, we issued RSUs to employees which vest upon the achievement of specific market-based or time-based measures. The fair value for RSU's is calculated based on the stock price on the grant date and expensed ratably over the requisite service period as market-based results achieved, which ranges between one year and five years. The following table summarizes the information about vested and unvested restricted stock units for the years ended December 31, 2021 and 2020.

	Number of Shares			Weighted Average Fair Value

Nonvested RSUs at January 1, 2020		1,973,725		$	1.49
RSUs granted		689,000			1.09
RSUs forfeited		(534,052	)		2.49
RSUs vested		(408,941	)		1.67

Nonvested RSUs at December 31, 2020		1,719,732		$	1.36

Nonvested RSUs at January 1, 2021		1,719,732		$	1.36
RSUs granted		983,661			1.69
RSUs forfeited		(631,367	)		0.88
RSUs vested		(476,361	)		1.71

Nonvested RSUs at December 31, 2021		1,595,665		$	1.77

As of December 31, 2021, we had $0.7 million of unrecognized compensation expense related to the RSUs expected to be recognized on a pro-rata straight line basis over a weighted average remaining service period of approximately 1.2 years.