Ideal Power Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Equity Incentive Plan

Equity Incentive Plan

3 Months Ended

Mar. 31, 2023

Note 7 — Equity Incentive Plan

In May 2013, the Company adopted the 2013 Equity Incentive Plan (as amended and restated, the “Plan”) and reserved shares of common stock for issuance under the Plan, which was last amended in June 2021. The Plan is administered by the Compensation Committee of the Company’s Board of Directors. At March 31, 2023, 136,880 shares of common stock were available for issuance under the Plan.

A summary of the Company’s stock option activity and related information is as follows:


				Weighted
		Weighted		Average
		Average		Remaining
	Stock	Exercise		Life
	Options	Price		(in years)
Outstanding at December 31, 2022	513,948	$	7.59	6.6
Granted	12,000	$	11.96
Outstanding at March 31, 2023	525,948	$	7.69	6.4
Exercisable at March 31, 2023	451,617	$	6.97	6.0

A summary of the Company’s restricted stock unit (RSU) and performance stock unit (PSU) activity is as follows:


	RSUs	PSUs
Outstanding at December 31, 2022	183,666	114,000
Granted	27,550	—
Vested	(6,889)	—
Outstanding at March 31, 2022	204,327	114,000

During the three months ended March 31, 2023, the Company granted 27,550 RSUs to Board members and 12,000 stock options to employees under the Plan. The estimated fair value of these equity grants, calculated using the Black-Scholes option valuation model for the stock options, was $409,376, $78,043 of which was recognized during the three months ended March 31, 2023.

At March 31, 2023, there was $3,073,279 of unrecognized compensation cost related to non-vested equity awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 0.9 years.