Fathom Holdings Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation

Stock-based Compensation

6 Months Ended

Jun. 30, 2023

Note 13. Stock-based Compensation

The Company’s 2019 Omnibus Stock Incentive Plan (the “2019 Plan”) provides for granting stock options, restricted stock awards, and restricted stock units to employees, directors, contractors and consultants of the Company. As of June 30, 2023, there were approximately 65,400 shares available for future grants under the 2019 Plan.

Restricted Stock Awards

Following is the restricted stock award activity for the three and six months ended June 30, 2023:


		Weighted Average
		Grant Date
	Shares	Fair Value
Nonvested at December 31, 2022	1,375,145	$	14.23
Granted	651,618		4.32
Released	(2,866)		6.55
Forfeited	(49,069)		12.77
Nonvested at March 31, 2023	1,974,828		10.98
Granted	61,514		4.51
Released	(27,464)		6.06
Forfeited	(29,300)		14.36
Nonvested at June 30, 2023	1,979,578		10.83

Restricted Stock Unit Awards

During 2022, the Company commenced granting restricted stock units to employees and agents.

Following is the restricted stock unit award activity for the three and six months ended June 30, 2023:


		Weighted Average
		Grant Date
	Shares	Fair Value
Nonvested at December 31, 2022	392,564	$	6.58
Granted	894,891		4.28
Released	—		—
Forfeited	(12,852)		6.05
Nonvested at March 31, 2023	1,274,603	$	4.97
Granted	88,481		4.53
Released	(17,080)		7.84
Forfeited	(45,510)		5.45
Nonvested at June 30, 2023	1,300,494	$	5.07

Stock Option Awards

There were no stock option awards granted during the six month period ended June 30, 2023.

Stock-based Compensation expense

Stock-based compensation expense related to all awards issued under the Company’s stock compensation plans for the three and six months ended June 30, 2023 and 2022 was as follows (amounts in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Commission and other agent-related cost	$	1,070	$	795	$	2,068	$	1,627
Operations and support		283		369		485		440
Technology and development		50		76		72		78
General and administrative		1,645		621		3,152		2,078
Marketing		137		80		228		125
Total stock-based compensation	$	3,185	$	1,941	$	6,005	$	4,348

The Company capitalized $0 of stock-based compensation expense associated with the cost of developing software for internal use during the three and six months ended June 30, 2023.

The Company capitalized approximately $0.1 million of stock-based compensation expense associated with the cost of developing software for internal use during each of the three and six months ended June 30, 2022.

At June 30, 2023, the total unrecognized compensation cost related to nonvested restricted stock awards was $8.7 million, which is expected to be recognized over a period of approximately 1.0 years.

At June 30, 2023, the total unrecognized compensation related to nonvested restricted stock units was $4.4 million which the Company expects to recognize over a period of approximately 1.4 years.

At June 30, 2023, the total unrecognized compensation related to nonvested stock option awards granted was approximately $0.1 million which the Company expects to recognize over a period of approximately 0.3 years.