NOTE 11 – EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN

Compensation expense charged against income for share-based awards during the three and nine months ended September 30, 2022 was $1,543,033 and $4,964,188, respectively, compared to $777,461 and $1,484,730 for the three and nine months ended September 30, 2021. These amounts are included in General and administrative expense in the accompanying financial statements.

In 2011, the Company’s board of directors and stockholders approved and adopted a long-term incentive plan which allowed for the issuance of up to 2,500,000 shares of common stock through the grant of qualified stock options, non-qualified stock options and restricted stock. In 2013, the Company’s board of directors and stockholders approved an amendment to the long-term incentive plan, increasing the number of shares eligible under the plan to 5,000,000 shares. There were 341,155 shares remaining eligible for grant, either as stock options or as restricted stock, as of September 30, 2022.

In May 2021, the Company’s board of directors and stockholders approved and adopted a long-term incentive plan (the “2021 Plan”) which allowed for the issuance of up to 9,900,000 shares, including 341,155 shares that were reserved but unissued under the prior plan, of common stock subject to the grant of qualified stock options, non-qualified stock options, restricted stock units and restricted stock. There were 5,577,843 shares eligible for grant under the 2021 Plan as of September 30, 2022.

Stock Options

A summary of the stock option activity as of September 30, 2022 and 2021, respectively, and changes during the three and nine months then ended is as follows:

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The intrinsic values were calculated using the closing price on September 30, 2022 of $2.32 and the closing price on September 30, 2021 of $2.95. As of September 30, 2022, there was $0 of unrecognized compensation cost related to stock options.

Restricted Stock

A summary of the restricted stock activity as of September 30, 2022 and 2021, and changes during the three and nine months then ended is as follows:

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As of September 30, 2022 there was $3,468,926 of unrecognized compensation cost related to restricted stock grants that will be recognized over a weighted average period of 1.90 years.

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Grant activity for the nine months ended September 30, 2022 was primarily restricted shares for the annual long-term incentive plan awards for employees.

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Performance Stock Units

A summary of the performance stock unit activity as of September 30, 2022 and 2021, and changes during the three and nine months then ended is as follows:

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As of September 30, 2022, there was $4,681,787 of unrecognized compensation cost related to performance stock units that will be recognized over a weighted average period of 1.79 years.