11. Stock-Based Compensation

Equity Incentive Plans – The Company’s 2013 Equity Compensation Plan (the “2013 Plan”) was adopted for the purpose of providing equity incentives to employees, officers, directors and consultants including options, restricted stock, restricted stock units, stock appreciation rights, other equity awards, annual incentive awards and dividend equivalents. Through a series of amendments to the 2013 Plan, the number of authorized shares available for issuance of common stock under the Plan is 1,500,000 shares.

Stock Options

The fair value of options is estimated on the date of grant using the Black-Scholes option pricing model. The valuation determined by the Black-Scholes pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. The risk-free rate is based on the U.S. Treasury rate for the expected life at the time of grant, volatility is based on the average long-term implied volatilities of peer companies, the expected life is based on the estimated average of the life of options using the simplified method, and forfeitures are estimated on the date of grant based on certain historical data. The Company utilizes the simplified method to determine the expected life of its options due to insufficient exercise activity during recent years as a basis from which to estimate future exercise patterns. The expected dividend assumption is based on the Company’s history and expectation of dividend payouts.

Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

The following table summarizes the Company’s stock option activity for the three months ended Mach 31, 2022 and 2021:

 Schedule of Stock Option Activity

Total unrecognized stock-based compensation expense related to unvested stock options at March 31, 2022 was approximately $24,000 and is expected to be recognized through the second quarter of 2024.

Warrants

As of March 31, 2022 and December 31, 2021, there were no warrants outstanding or exercisable.

Restricted Stock

As of March 31, 2022 and 2021, the following is a summary of restricted stock activity:

 Schedule of Restricted Stock Award Activity

Additionally, the Company had no non-cash stock-based compensation expense recorded for the three months ended March 31, 2022 and 2021, respectively, as a component of general and administrative expenses in the accompanying statements of operations, pertaining to restricted stock.

Total unrecognized stock-based compensation expense related to unvested restricted stock at March 31, 2022 was approximately $117,000 and is expected to be recognized through the second quarter of 2022.