15.   Stock-Based Compensation and Employee Benefits

Stock-Based Compensation

On October 27, 2016, the Company adopted the 2016 Equity Compensation Plan (the “Plan”), the purpose of which is to align the interests of the Company’s officers, other employees, advisors and consultants or any subsidiary, if any, with those of the Company’s shareholders and to afford an incentive to such officers, employees, consultants and advisors to continue as such, to increase their efforts on the Company’s behalf and to promote the success of the Company’s business. The Plan is administered by the Compensation Committee. The maximum number of common shares reserved for the grant of awards under the Plan is 1,500,000, subject to adjustment as provided in Section 5 of the Plan. The number of securities remaining available for future issuance under the Plan as of June 30, 2024 was 781,262.

During the six months ended June 30, 2024 and 2023, the Company granted an aggregate of 212,857 and 183,390, respectively, restricted common shares under the Plan, including restricted common shares granted to the Company’s Chief Executive Officer (see Note 12). Such shares had a fair value of approximately $0.8 million and approximately $0.7 million, respectively.

With respect to the restricted common shares granted during the six months ended June 30, 2024, (i) 33,666 shares vested on May 9, 2024; (ii) 33,667 shares will vest on May 1, 2025 and 2026, respectively; (iii) 37,285 shares will vest on January 1, 2025; and (iv) 37,286 shares will vest on January 1, 2026 and 2027, respectively.

Stock-based compensation for the three months ended June 30, 2024 and 2023 was $0.2 million for both periods, which is included in compensation and employee benefits on the accompanying consolidated statements of operations. Stock-based compensation for the six months ended June 30, 2024 and 2023 was $0.4 million for both periods. As of June 30, 2024, there was unrecorded stock-based compensation expense of $1.1 million.

Employee Benefits

On April 16, 2018, the Company’s Board of Directors approved the adoption of the Sachem Capital Corp. 401(k) Profit Sharing Plan (the “401(k) Plan”). All employees, who meet the participation criteria, are eligible to participate in the 401(k) Plan. Under the terms of the 401(k) Plan, the Company is obligated to contribute 3% of a participant’s compensation to the 401(k) Plan on behalf of an employee-participant. For the three months ended June 30, 2024 and 2023, the 401(k) Plan expense was $0.03 million and $0.03 million, respectively, which is included within compensation and employee benefits in the accompanying consolidated statements of operations. For the six months ended June 30, 2024 and 2023, the 401 (k) Plan expense was $0.08 million and $0.08 million, respectively, which is included within compensation and employee benefits in the accompanying consolidated statements of operations.