EQUITY- BASED COMPENSATION
|9 Months Ended|
Sep. 30, 2021
|EQUITY- BASED COMPENSATION|
|EQUITY- BASED COMPENSATION||
NOTE 12 – EQUITY- BASED COMPENSATION
On May 20, 2021, the stockholders of 22nd Century Group, Inc. (the “Company”) approved the 22nd Century Group, Inc. 2021 Omnibus Incentive Plan (the “Plan”). The Plan allows for the granting of equity awards to eligible individuals over the life of the Plan, including the issuance of up to 5,000,000 shares of the Company’s common stock and any remaining shares under the Company’s 2014 Omnibus Incentive Plan pursuant to awards under the Plan. The Plan has a term of ten years and is administered by the Compensation Committee of the Company’s Board of Directors to determine the various types of incentive awards that may be granted to recipients under the Plan and the number of shares of common stock to underlie each such award under the Plan. As of September 30, 2021, the Company had available 7,449,946 shares remaining for future awards under the Plan.
Restricted Stock Units (“RSUs”). We typically grant RSUs to employees and non-employee directors. The following table summarizes the changes in unvested RSUs from December 31, 2020 through September 30, 2021.
The fair value of RSUs that vested during the nine months ended September 30, 2021 was approximately $5,057 based on the stock price at the time of vesting.
Stock Options. Our outstanding stock options were valued using the Black-Scholes option-pricing model on the date of the award. A summary of all stock option activity since December 31, 2020 is as follows:
The intrinsic value of a stock option is the amount by which the current market value or the market value upon exercise of the underlying stock exceeds the exercise price of the option.
The weighted average of fair value assumptions used in the Black-Scholes option-pricing model for such grants were as follows:
Compensation Expense. The Company recognized the following compensation costs, net of actual forfeitures, related to RSUs and stock options:
As of September 30, 2021, unrecognized compensation expense amounted to $5,931 which is expected to be recognized over a weighted average period of approximately 1.1 years. In addition, there is approximately $517 of unrecognized compensation expense that requires the achievement of certain milestones which are not yet probable.
The entire disclosure for share-based payment arrangement.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef