Quarterly report pursuant to Section 13 or 15(d)

Stock Incentive Plan

v3.23.3
Stock Incentive Plan
9 Months Ended
Sep. 30, 2023
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Incentive Plan
NOTE 14. STOCK INCENTIVE PLAN
The following table reflects the components of stock-based compensation expense recognized in the Condensed Consolidated Statements of Operations for the three and nine-month periods ended September 30, 2023 and 2022:
 
    
Three Months Ended
September 30,
    
Nine Months Ended

September 30,
 
    
2022
    
2023
    
2022
    
2023
 
                                     
    
(Dollars in thousands)
    
(Dollars in thousands)
 
Stock option compensation expense included in unallocated corporate expenses
   $ 24     
$
83
 
   $ 60     
$
201
 
Restricted stock shares compensation expense included in corporate expenses
     —         —         54        —   
Stock option compensation expense included in broadcast operating expenses
     18     
 
34
 
     67     
 
95
 
Stock option compensation expense included in digital media operating expenses
     12     
 
10
 
     47     
 
39
 
Stock option compensation expense included in publishing operating expenses
     —      
 
2
 
     —      
 
5
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total stock-based compensation expense,
pre-tax
   $ 54     
$
129
 
   $ 228     
$
340
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Tax expense for stock-based compensation expense
     (14   
 
(33
     (59   
 
(88
    
 
 
    
 
 
    
 
 
    
 
 
 
Total stock-based compensation expense, net of tax
   $ 40     
$
96
 
   $ 169     
$
252
 
    
 
 
    
 
 
    
 
 
    
 
 
 
The weighted-average assumptions used to estimate the fair value of the stock options using the Black-Scholes valuation model were as follows for the three and nine-month periods ended September 30, 2023 and 2022:
 
 
  
Three Months Ended
September 30, 2022
 
Nine Months Ended
September 30, 2022
 
Three Months Ended
September 30, 2023
  
Nine Months Ended
September 30, 2023
Expected volatility
   85.94%   84.90%  
n/a
  
87.94%
Expected dividends
   0.00%   0.00%  
n/a
  
0.00%
Expected term (in years)
   7.5   9.2  
n/a
  
8.4
Risk-free interest rate
   3.10%   1.86%  
n/a
  
3.69%
Activity with respect to our option awards during the nine-month period ended September 30, 2023 is as follows:
 
Options
   Shares     Weighted
Average
Exercise Price
     Weighted
Average Grant
Date
Fair Value
     Weighted Average
Remaining
Contractual Term
     Aggregate
Intrinsic
Value
 
                                             
    
(Dollars in thousands, except weighted average exercise price and weighted
average grant date fair value)
 
Outstanding at January 1, 2023
     1,706,340     $ 2.68      $ 1.23        4.2 years      $ —   
Granted
     1,249,500       1.06        0.87                 —   
Exercised
     —        —         —                  —   
Forfeited or expired
     (153,997     4.90        1.43                 —   
    
 
 
                                    
Outstanding at September 30, 2023
  
 
2,801,843
 
 
 
1.89
 
  
 
1.07
 
  
 
5.5 years
 
  
$
—   
    
 
 
                                    
Exercisable at September 30, 2023
  
 
1,101,843
 
 
 
2.75
 
  
 
1.20
 
  
 
2.7 years
 
     —   
    
 
 
                                    
Expected to Vest
  
 
1,614,150
 
 
 
1.91
 
  
 
1.07
 
  
 
5.5 years
 
  
$
—   
    
 
 
                                    
Activity with respect to our restricted stock awards during the nine-month period ended September 30, 2023 is as follows:
 
Restricted Stock Awards
  
Shares
 
  
Weighted Average
Grant Date Fair
 
  
Weighted Average
Remaining Contractual Term
 
  
Aggregate
Intrinsic Value
 
  
  
  
  
 
  
(Dollars in thousands, except weighted average exercise price and weighted average
grant date fair value)
 
Outstanding at January 1, 2023
     14,854        3.66        1.20      $ 16  
Granted
     —         —         —         —   
Lapsed
     —      
 
— 
 
     —         —   
Forfeited
     —      
 
— 
 
     —         —   
    
 
 
                            
Outstanding at September 30, 2023
  
 
14,854
 
  
 
3.66
 
  
 
0.5
 
  
$
9
 
    
 
 
                            
The aggregate intrinsic value represents the difference between the company’s closing stock price on September 30, 2023 of $0.59 and the option exercise price of the shares for stock options that were in the money, multiplied by the number of shares underlying such options. The total fair value of options vested during the periods ended September 30, 2023 and 2022, was $0.2 million.
As of September 30, 2023, there was $1.1 million of total unrecognized compensation cost related to
non-vested
stock option awards. This cost is expected to be recognized over a weighted-average period of 2.9 years.