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Note 14 - Share-based Compensation

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

14.

SHARE-BASED COMPENSATION:

The Company has one active stock incentive plan for employees and directors, the 2022 Stock Incentive Plan, which provides for awards of stock options to purchase shares of common stock, stock appreciation rights, restricted and unrestricted shares of common stock, RSUs, and PSAs. In addition, the Company had one inactive stock incentive plan, the 2007 Stock Incentive Plan, under which previously granted awards vested on April 1, 2024.

The following table summarizes share-based compensation expense recorded (in thousands):

		*Year Ended December 31,*
		*2024*				*2023*				*2022*

Cost of sales		$	1,511			$	1,027			$	1,320
Selling, general, and administrative expense			3,550				2,645				2,382
Total		$	5,061			$	3,672			$	3,702

There were 591,806 shares of common stock available for future issuance under the Company’s stock incentive plan as of December 31, 2024, assuming the outstanding PSAs vest at the target level of 100%.

Restricted Stock Units and Performance Share Awards

The Company’s stock incentive plan provides for equity instruments, such as RSUs and PSAs, which grant the right to receive a specified number of shares at specified times. RSUs and PSAs are service-based awards that vest according to the terms of the grant. PSAs have performance-based payout conditions.

The following table summarizes the Company’s RSU and PSA activity:

		*Number of RSUs and PSAs (1)*				*Weighted- Average Grant Date Fair Value*

Unvested RSUs and PSAs as of December 31, 2023			226,391			$	29.66
RSUs and PSAs granted			120,143				34.68
Unvested RSUs and PSAs canceled			(3,197	)			29.15
RSUs and PSAs vested (2)			(103,266	)			30.35
Unvested RSUs and PSAs as of December 31, 2024			240,071				31.89

	(1)	The number of PSAs disclosed in this table are at the target level of 100%.

	(2)	For the PSAs vested on April 1, 2024, the actual number of common shares that were issued was determined by multiplying the PSAs at the target level of 100%, as disclosed in this table, by a payout percentage based on the performance-based conditions achieved. The payout percentage was 123% for the 2021-2023 performance period, 110% for the 2022-2023 performance period, and 90% for the 2023 performance period.

The unvested balance of RSUs and PSAs as of December 31, 2024 includes approximately 180,000 PSAs at the target level of 100%. The vesting of these awards is subject to the achievement of specified performance-based conditions, and the actual number of common shares that will ultimately be issued will be determined by multiplying this number of PSAs by a payout percentage ranging from 0 - 200%.

The weighted-average grant date fair value of RSUs and PSAs granted during the years ended December 31, 2024, 2023, and 2022 was $34.68, $28.41, and $30.68, respectively. The total fair value of RSUs and PSAs vested during the years ended December 31, 2024, 2023, and 2022 was $4.1 million, $4.4 million, and $2.4 million, respectively.

Based on the estimated level of achievement of the performance targets associated with the PSAs as of December 31, 2024, unrecognized compensation expense related to the unvested portion of the Company’s RSUs and PSAs was $3.8 million, which is expected to be recognized over a weighted-average period of 1.5 years.

Stock Awards

For the years ended December 31, 2024, 2023, and 2022, stock awards of 14,424 shares, 15,904 shares, and 11,380 shares, respectively, were granted to non-employee directors, which vested immediately upon issuance. The Company recorded compensation expense based on the weighted-average fair market value per share of the awards on the grant date of $33.27 in 2024, $29.51 in 2023, and $30.75 in 2022.