Share-Based Compensation |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Compensation |
NOTE 9 – SHARE-BASED COMPENSATION
2022 Equity Incentive Plan
On January 24, 2022 the CSI board of directors adopted, and on March 16, 2022 the Company’s shareholders approved, the Company’s 2022 Equity Incentive Plan (“2022 Plan”), which became effective on March 28, 2022. The 2022 Plan authorizes incentive awards to officers, key employees, non-employee directors, and consultants in the form of options (incentive and non-qualified), stock appreciation rights, restricted stock awards, stock unit awards, and other stock-based awards. Following an amendment approved on December 7, 2022, the 2022 Plan authorizes the issuance of up to 83,333 shares of common stock (1,250,000 prior to the Reverse Stock Split). At June 30, 2024, 30,693 shares had been issued under the 2022 Plan, 20,650 shares were subject to currently outstanding unvested restricted stock units (“RSUs”), and 31,990 shares were available for grant under future awards.
Inducement Grants On October 10, 2022, the board of directors approved an inducement grant of 5,485 RSUs in connection with the hiring of a new Chief Financial Officer. On November 6, 2022, the board of directors approved inducement grants totaling 8,970 RSUs in connection with the hiring of Senior Vice Presidents in connection with the SUNation acquisition.
Changes in Restricted Stock Units Outstanding
The following table summarizes the changes in the number of RSUs during the six months ended June 30, 2024:
All RSUs and weighted average grant date fair value per share values have been adjusted to reflect the impact of the Reverse Stock Split of the common stock at a ratio of that became effective on June 12, 2024. See Note 1, "Nature of Operations," for further details.
Compensation Expense
Share-based compensation expense recognized for the three months ended June 30, 2024 and 2023 was $(11,583) and $300,537, respectively, and $185,723 and $612,982 for the six months ended June 30, 2024 and 2023. Unrecognized compensation expense related to outstanding RSUs was $341,490 at June 30, 2024 and is expected to be recognized over a weighted-average period of 1.5 years. Share-based compensation expense is recorded as a part of selling, general and administrative expenses.
Employee Stock Purchase Plan On December 7, 2022, the Company’s shareholders approved an Employee Stock Purchase Plan (“ESPP”), pursuant to which eligible employees are able to acquire shares of common stock at a purchase price determined by the board of directors or compensation committee prior to the start of each six-month plan phase, which price may not be less than 85% of the fair market value of the lower of the value on the first day or the last day of the phase, or the value on the last day of the phase. The ESPP is considered compensatory under current Internal Revenue Service rules. At June 30, 2024, 20,001 shares remained available for purchase under the ESPP. |
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