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Note 13 - Stock-based Compensation
 3 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

Note 13 – Stock–Based Compensation

 

NHC recognizes stock–based compensation expense for all stock options granted over the requisite service period using the fair value at the date of grant using the Black–Scholes pricing model. Stock–based compensation totaled $793,000 and $639,000 for the three months ended March 31, 2024 and 2023, respectively. Stock–based compensation is included in “Salaries, wages and benefits” in the interim condensed consolidated statements of operations.

 

At March 31, 2024, the Company had $7,652,000 of unrecognized compensation cost related to unvested stock–based compensation awards. This unrecognized compensation cost will be amortized over an approximate three-year period.

 

Stock Options

 

The following table summarizes the significant assumptions used to value the options granted for the three months ended March 31, 2024 and for the year ended December 31, 2023.

 

  

March 31,

2024

  

December 31,
2023

 

Risk–free interest rate

  4.33%   4.52% 

Expected volatility

  24.1%   29.3% 

Expected life, in years

  2.9   2.9 

Expected dividend yield

  2.64%   4.41% 

 

The following table summarizes our outstanding stock options for the three months ended March 31, 2024 and for the year ended December 31, 2023.

 

  

Number of

Shares

  

Weighted

Average

Exercise Price

  

Aggregate

Intrinsic

Value

 

Options outstanding at January 1, 2023

  445,144  $66.62  $– 

Options granted

  299,278   54.44   – 

Options exercised

  (103,481)  64.72   – 

Options cancelled

  (52,407)  60.58   – 

Options outstanding at December 31, 2023

  588,534   61.30   – 

Options granted

  245,726   94.07   – 

Options exercised

  (137,874)  60.95   – 

Options outstanding at March 31, 2024

  696,386  $72.93  $15,025,015 
             

Options exercisable at March 31, 2024

  174,105  $68.48  $4,531,876 

 

 

Options

Outstanding

March 31, 2024

  

Exercise Prices

 

Weighted Average

Exercise Price

  

Weighted Average

Remaining

Contractual

Life in Years

 

377,405

  

53.94

-

69.19

  

58.92

   

3.5

 

318,981

  

71.64

-

94.10

  

89.51

   

4.0

 

696,386

       

72.93

   

3.7