Stock-Based Compensation
On December 9, 2019, the Board of Directors of the Company adopted the 2019 Long Term Incentive Plan (the “2019 Plan”). The 2019 Plan provides for the award of Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Stock Awards, Dividend Equivalents, Other Stock-Based Awards, Cash Awards, Substitute Awards and Performance Awards. Awards may be granted under the 2019 Plan to employees, officers and directors of the Company and our Affiliates, and any other person who provides services to the Company or any of our Affiliates.
The 2019 Plan succeeds our 2007 Employee Stock Incentive Plan (the “2007 Plan”) and no further shares will be issued under the 2007 Plan.
The maximum number of shares of common stock available for issuance under the 2019 Plan is 1,675,000 shares.
As of December 31, 2019, no awards or units had been granted under the 2019 Plan.
Restricted Stock Awards
Independent directors receive 50% of their retainer fee as Restricted Stock Awards (“RSAs”). The RSAs are issued immediately upon grant and are subject to a one year vesting period and other restrictions.
During the year ended December 31, 2020, the Company granted 61,308 RSAs to independent directors under the 2019 Plan. The fair value of the RSAs on the date of grant was $150 thousand based on the previous day closing price of our common stock as reported on the OTCQX Best Market on the grant date, a weighted-average grant date fair value of $3.67 per award. The Company recognized $133 thousand in stock-based compensation costs for the year ended December 31, 2020, which is included in general and administrative expenses in the condensed consolidated statements of operations.
As of December 31, 2020, the Company had $17 thousand of unrecognized compensation costs related to our Board of Directors grants, which is expected to be recognized over a weighted average period of less than one year.
Restricted Stock Units
During the year ended December 31, 2020, the Company granted 781,000 Restricted Stock Units (“RSUs”) to employees under the 2019 Plan. The fair value of the RSUs on the date of grant was $1.4 million based on the previous day closing price of our common stock as reported on the OTCQX Best Market on the grant date, a weighted-average grant date fair value of $1.75 per unit. The Company recognized $397 thousand in stock-based compensation costs for the year ended December 31, 2020, which is included in general and administrative expenses in the condensed consolidated statements of operations. The Company recognized 2,500 forfeitures, at a weighted-average grant date fair value of $1.75 per unit, as a reduction of expense previously recorded as general and administrative expenses in the condensed consolidated statements of operations during the year ended December 31, 2020. No awards vested during the year ended December 31, 2020 and there were 778,500 RSUs outstanding as of December 31, 2020. All units are expected to vest.
As of December 31, 2020, the Company had $965 thousand of unrecognized compensation costs related to our RSUs, which is expected to be recognized over a weighted average period of less than three years.