STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION We maintain, as approved by the board of directors and the stockholders, the 2017 Incentive Stock Plan and the 2019 Incentive Stock Plan (the “Plans”) providing for the issuance of stock-based awards to employees, officers, directors or consultants of the Company. Non-qualified stock options may only be granted with an exercise price equal to the market value of our common stock on the grant date. Awards under the Plan may be either vested or unvested options, or unvested restricted stock. The Plans have authorized 13.0 million shares for issuance of stock-based awards. As of March 31, 2023 there were approximatel y 8.8 thousand shares available for issuance of future stock awards under the Plans. Subsequent to March 31, 2023, the 2023 Long-Term Incentive Plan was approved by the board of directors and the stockholders, providing 4.5 million shares available for issuance of future stock awards. Stock-based compensation expense The following table summarizes stock-based compensation expense for the periods indicated: Three Months Ended March 31, 2023 2022 Stock options $ 240,538 $ 232,378 Restricted stock awards 2,061,838 1,679,244 Performance-based restricted stock awards 722,013 438,671 Total stock-based compensation expense $ 3,024,389 $ 2,350,293 Stock options A summary of stock option activity for the three months ended March 31, 2023 is as follows: Number of Options Weighted Weighted Balance, December 31, 2022 423,626 $ 7.60 6.7 Exercised (200) 1.81 Balance, March 31, 2023 423,426 $ 7.63 6.7 Number of options exercisable at March 31, 2023 271,210 $ 6.29 5.4 As of March 31, 2023, unrecognized compensation expense was $1.4 million for unvested options which is expected to be recognized over the next 1.4 years. Restricted stock awards A summary of restricted stock award activity for the three months ended March 31, 2023 is as follows: Number of Unvested Shares Weighted Average Grant Date Fair Value per Share Balance, December 31, 2022 3,511,598 $ 4.86 Granted 1,980,722 2.02 Vested (811,650) 4.13 Forfeited (19,065) 4.32 Balance, March 31, 2023 4,661,605 $ 3.71 As of March 31, 2023, unrecognized compensation expense was $15.5 million for unvested restricted stock awards which is expected to be recognized over the next 1.9 years. Performance share units ( “ PSUs ” ) We have 1.2 million PSUs issued to certain executives. The vesting of the PSUs is conditioned upon achievement of certain performance objectives over a performance period ending December 31, 2024 as defined in each award agreement. Fifty percent of the PSUs vest based upon the Company’s total shareholder return as compared to a group of peer companies (“TSR PSUs”), and fifty percent of the PSUs vest based upon our performance on certain measures including a cumulative adjusted EBITDA target (“EBITDA PSUs”). Depending on the actual achievement on the performance objectives, the grantee may earn between 0% and 200% of the target PSUs. A summary of the activity for PSU awards with total shareholder return performance objectives for the three months ended March 31, 2023 is as follows: Number of Unvested Shares Weighted Average Grant Date Fair Value per Share Balance, December 31, 2022 738,751 $ 11.79 Granted — — Forfeited — — Balance, March 31, 2023 738,751 $ 11.79 The grant date fair value of $11.79 per TSR PSU was estimated using a Monte-Carlo simulation model using a volatility assumption of 117% and risk-free interest rate of 0.69%. As of March 31, 2023, unrecognized compensation expense was $5.1 million for unvested TSR PSUs, which is expected to be recognized over the next 1.8 years. A summary of the PSU awards with cumulative adjusted EBITDA targets for the three months ended March 31, 2023 is as follows: Number of Unvested Shares Balance, December 31, 2022 432,546 Granted — Forfeited — Balance, March 31, 2023 432,546 |