STOCK OPTIONS |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK OPTIONS |
In 2016 to compensate officers, directors and other key service providers with equity grants, the Board approved the 2016 Omnibus Equity Incentive Plan (“2016 Plan”), which initially allowed for shares of common stock, stock options, stock rights (restricted stock units), or stock appreciation rights to be granted by the Board in its discretion. This authorized amount was increased multiple times by Board resolution, most recently to shares on January 13, 2022. There are currently no shares available under the 2016 Plan for future issuance; however, the Board may increase the authorized shares under the 2016 Plan each year.
The Company issued stock options to purchase common stock to officers and directors of the Company during the three months ended March 31, 2022. These options have a year term. The options have the following vesting schedules:
One management team’s options has a performance related vesting schedule in which options are vested based on completion of performance requirements and options are vested based on standard vesting over months.
The aggregate intrinsic value of options exercised is the difference between the fair market value of the Company’s closing price of our common stock at each reporting date, less the exercise price multiplied by the number of options granted which was nil at March 31, 2022.
As of March 31, 2022, the unrecognized stock-based compensation of approximately $million is expected to be expensed over the next 24 to 36 months based on the option vesting requirements. The weighted average fair value of options granted was $per share for the three months ended March 31, 2022. For the three-month period ended March 31,2022, the stock-based compensation expense was $ which is included in compensation and related expenses.
We estimate the fair value of stock-based awards on the date of grant using the Black-Scholes option pricing model using the fair market value of our common stock on the date of grant and a number of other assumptions. These assumptions include estimates regarding the expected term of the awards, estimates of the stock volatility over a duration that approximates the expected term of the awards, estimates of the risk-free rate, and estimates of expected dividend rates.
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