Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Stock Based Compensation

v3.21.2
Note 6 - Stock Based Compensation
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Share-based Payment Arrangement [Text Block]

Note 6 - STOCK BASED COMPENSATION

 

Restricted Stock Units

 

During the nine months ended September 30, 2021, the Company granted 39,849 RSUs to an officer and certain of our directors of the Company. Total outstanding RSUs as of September 30, 2021 are 127,176. All outstanding RSUs became fully vested and expensed upon the IPO. The granting of these restricted stock units are not pursuant to a formal plan. Restricted stock units were subject to restrictions on transfer and were generally subject to a risk of forfeiture if the award recipient ceased to be an employee or director of the Company prior to vesting of the award. Each RSU represents the right to receive one share of common stock. Each RSU is also entitled to receive a dividend equivalent payment equal to the dividend paid on one share of common stock. The amortization of compensation costs for the awards of RSUs are included in stock-based compensation in the accompanying consolidated statements of operations and amount to $1,820,060 and $20,427 for the nine months ended September 30, 2021 and 2020, respectively. The amortization of compensation costs for the awards of RSUs amount to $816,482 and $7,655 for the three months ended September 30, 2021 and 2020, respectively.

 

The following table sets forth our unvested restricted stock activity from April 9, 2019 (Inception) through September 30, 2021:

 

   

 

Number of Unvested

Shares of RSUs

   

Weighted-Average

Grant

Date Fair Value Per

Share

 
                 

Granted

    3,000     $ 20.00  

Vested

    -     $ -  

Balance at December 31, 2019

    3,000     $ 20.00  

Granted

    84,327     $ 21.09  

Vested

    (39,924 )   $ 21.12  

Balance at December 31, 2020

    47,403     $ 20.99  

Granted

    39,849     $ 21.15  

Vested

    (87,252 )   $ 21.06  

Balance at September 30, 2021

    -     $ -  

 

Stock Options

 

The fair value of each option award was estimated on the date of grant using the Black- Scholes model. Expected volatilities were based on historical daily volatilities of publicly traded guideline companies. The expected term of options granted was based on the “simplified” method for options and represents the period of time that options granted were expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option was based on the U.S. Treasury yield. The stock price at date of issuance and exercise price are $20.00 and $24.00, respectively. The expected volatility was 52.5% and the expected life was 4.5 years. The risk- free interest rate was 1.56% and the expected dividend yield was 6.0%. The options were fully vested at December 31, 2020. No options have been granted or been exercised during the period ended September 30, 2021. The value for Options issued in connection with the Internalization are included in stock-based compensation in the accompanying consolidated statements of operations and amount to $0 and $3,863,935 for the nine months ended September 30, 2021 and 2020, respectively. The value for Options issued in connection with the Internalization amount to $0 and $3,863,935 for the three months ended September 30, 2021 and 2020, respectively. See Note 4.

 

The following table summarizes stock option activity during the nine months ended September 30, 2021 and the year ended December 31, 2020:

 

   

Number of

Shares

   

Weighted Average

Exercise Price

 

Outstanding at January 1, 2020

    -     $ -  

Granted

    791,790     $ 24.00  

Exercisable

    (527,862 )   $ 24.00  

Non Exercisable at December 31, 2020

    263,928     $ 24.00  

Granted

    -       -  

Exercisable

    (87,976 )   $ 24.00  

Non Exercisable at September 30, 2021

    175,952     $ 24.00