Quarterly report pursuant to Section 13 or 15(d)

Stock Incentive Plan

v3.23.2
Stock Incentive Plan
 6 Months Ended
Jun. 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
six-month
periods ended June 30, 2023 and 2022:

 
 
  
Three Months Ended June 30,
 
  
Six Months Ended June 30,
 
 
  
2022
 
  
2023
 
  
2022
 
  
2023
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
  
(Dollars in thousands)
 
  
(Dollars in thousands)
 
Stock option compensation expense included in unallocated corporate expenses
   
$
34
 
  
$
83
 
  
$
36
 
  
$
118
 
Restricted stock shares compensation expense included in corporate expenses
   
 
—
  
 
  
 
—
  
 
  
 
54
 
  
 
—
  
  
Stock option compensation expense included in broadcast operating expenses
   
 
19
 
  
 
35
 
  
 
49
 
  
 
61
 
Stock option compensation expense included in digital media operating expenses
   
 
15
 
  
 
16
 
  
 
35
 
  
 
29
 
Stock option compensation expense included in publishing operating expenses
   
 
—
  
 
  
 
2
 
  
 
—
  
 
  
 
3
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Total stock-based compensation expense,
pre-tax
   
$
68
 
  
$
136
 
  
$
174
 
  
$
211
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Tax expense for stock-based compensation expense
   
 
(18
) 
  
 
(35
) 
  
 
(45
) 
  
 
(55
) 
    
 
 
     
 
 
     
 
 
     
 
 
  
Total stock-based compensation expense, net of tax
   
$
50
 
  
$
101
 
  
$
129
 
  
$
156
 
    
 
 
     
 
 
     
 
 
     
 
 
  
 
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
six-month
periods ended June 30, 2023 and 2022:

 
 
  
Three Months Ended
June 30, 2022
 
  
Six Months Ended
June 30, 2022
 
 
Three Months Ended
June 30, 2023
 
  
Six Months Ended
June 30, 2023
 
Expected volatility
  
 
n/a
 
  
 
84.69
% 
 
 
n/a
 
  
 
87.94
%
Expected dividends
  
 
n/a
 
  
 
0.00
% 
 
 
n/a
 
  
 
0.00
% 
Expected term (in years)
  
 
n/a
 
  
 
9.5
 
 
 
n/a
 
  
 
8.4
 
Risk-free interest rate
  
 
n/a
 
  
 
1.61
% 
 
 
n/a
 
  
 
3.69
% 
Activity with respect to our option awards during the
six-month
period ended June 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
   
 
(123,247
) 
 
 
4.90
 
  
 
1.43
 
  
 
 
 
  
 
—  
 
    
 
 
                                     
Outstanding at June 30, 2023
  
 
2,832,593
 
 
 
1.88
 
  
 
1.07
 
  
 
5.8
 years
 
  
$
—
  
 
    
 
 
                                     
Exercisable at June 30, 2023
   
 
1,079,843
 
 
 
2.76
 
  
 
1.20
 
  
 
2.9
years
 
  
 
—  
 
    
 
 
                                     
Expected to Vest
  
 
1,664,236
 
 
 
1.90
 
  
 
1.07
 
  
 
5.7
years
 
  
$
—
  
 
    
 
 
                                     
Activity with respect to our restricted stock awards during the
six-month
period ended June 30, 2023 is as follows:

 
Restricted Stock Awards
  
Shares
 
  
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
   
 
14,854
 
  
 
3.66
 
  
 
1.20
 
  
$
16
 
Granted
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Lapsed
   
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Forfeited
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
    
 
 
                             
Outstanding at June 30,
2023
  
 
14,854
 
  
 
3.66
 
  
 
0.7
 
  
$
14
 
    
 
 
                             
The aggregate intrinsic value represents the difference between the company’s closing stock price on June 30, 2023 of $
0.96
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 June 30, 2023 and 2022, was $
0.1
 million and $
0.3
 million, respectively.
As of June 30
, 2023, there was $1.2 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 3.1 years.