XML 39 R19.htm IDEA: XBRL DOCUMENT
v3.25.1

Note 11 - Share-Based Compensation | 12 Months Ended
--- | ---
Dec. 31, 2024
Notes to Financial Statements |
Share-Based Payment Arrangement [Text Block] | 11. Share-Based Compensation Stock Options The Company has an employee and non-employee director incentive compensation equity plan. Related to these programs, the Company recorded $286 and $200 of share-based employee compensation expense related to stock options during the years ended December 31, 2024 and 2023, respectively, which is included as a component of cost of products and SG&A expenses in the accompanying consolidated statements of operations. No amount of share-based employee compensation expense was capitalized as part of capital expenditures or inventory for the years presented. The Company uses the Black-Scholes-Merton option valuation model to calculate the fair value of a stock option grant. The share-based employee compensation expense recorded in the years ended December 31, 2024 and 2023 was calculated using the assumptions noted in the following table. Expected volatilities are based on the historical volatility of the Company’s common stock over the period of time, commensurate with the expected life of the stock options. The dividend yield assumption is based on the Company’s expectations of dividend payouts at the grant date. The Company has estimated its future stock option exercises. The expected term of option grants is based upon the observed and expected time to the date of post vesting exercises and forfeitures of options by the Company’s employees. The risk-free interest rate is derived from the average U.S. Treasury rate for the period, which approximates the rate at the time of the stock option grant.
|  | FY 2024 |  |  | FY 2023 |
Expected Volatility |  |  | 56.8 | % |  |  | 55.8 | %
Expected Dividends |  |  | 0 | % |  |  | 0 | %
Expected Term (in years) |  |  | 6.5 |  |  |  | 6.5 |
Risk-Free Rate |  |  | 4.08 | % |  |  | 3.67 | %
Estimated Forfeitures |  |  | 0.0 | % |  |  | 0.0 | %
A summary of stock option activity under the Company’s equity compensation plans as of December 31, 2024, and changes during the year ended December 31, 2024, are presented below:
|  |  |  |  |  | Wgt. Avg. |  |  | Wgt. Avg. |  |  | Wgt Avg. |  |  |  |  |
|  |  |  |  |  | Exercise |  |  | Remaining |  |  | Grant Date |  |  | Aggregate |
|  |  |  |  |  | Price ($) |  |  | Contractual |  |  | Fair Value ($) |  |  | Intrinsic |
|  | Stock Options |  |  | Per Share |  |  | Life (Years) |  |  | Per Share |  |  | Value ($) |
As of January 1, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Outstanding |  |  | 202,600 |  |  |  | 14.76 |  |  |  | 7.60 |  |  |  | 5.94 |  |  |  | 37,773 |
Vested |  |  | 105,313 |  |  |  | 16.01 |  |  |  | 6.80 |  |  |  | 5.78 |  |  |  | 9,661 |
Nonvested |  |  | 97,287 |  |  |  | 13.41 |  |  |  | 8.47 |  |  |  | 6.12 |  |  |  | 28,112 |
Period activity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Issued |  |  | 115,900 |  |  |  | 12.31 |  |  |  | — |  |  |  | 7.29 |  |  |  | — |
Exercised |  |  | 6,200 |  |  |  | 13.57 |  |  |  | — |  |  |  | 6.01 |  |  |  | — |
Forfeited |  |  | 27,200 |  |  |  | 16.25 |  |  |  | — |  |  |  | 6.98 |  |  |  | — |
Expired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
As of December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Outstanding |  |  | 285,100 |  |  |  | 13.65 |  |  |  | 7.72 |  |  |  | 6.39 |  |  |  | 5,884,764 |
Vested |  |  | 109,840 |  |  |  | 15.23 |  |  |  | 6.25 |  |  |  | 5.46 |  |  |  | 2,093,685 |
Nonvested |  |  | 175,260 |  |  |  | 12.66 |  |  |  | 8.63 |  |  |  | 6.97 |  |  |  | 3,791,078 |
Outstanding:
|  |  |  |  |  |  |  |  |  |  | Wgt. Avg. |  |  | Wgt. Avg. |
|  |  |  |  |  |  |  |  |  |  | Exercise |  |  | Remaining |
Range of Exercise Prices |  |  |  |  |  |  | Stock Options |  |  | Price ($) |  |  | Contractual |
($) Per Share |  |  |  |  |  |  | Outstanding |  |  | Per Share |  |  | Life (Years) |
11.51 |  |  | - | 15.53 |  |  |  | 247,300 |  |  |  | 12.82 |  |  |  | 8.21 |
16.20 |  |  | - | 25.50 |  |  |  | 37,800 |  |  |  | 19.06 |  |  |  | 4.50 |
|  |  |  |  |  |  |  | 285,100 |  |  |  | 13.65 |  |  |  | 7.72 |
Exercisable:
|  |  |  |  |  |  |  |  |  |  | Wgt. Avg. |
|  |  |  |  |  |  |  |  |  |  | Exercise |
Range of Exercise Prices |  |  |  |  |  |  | Stock Options |  |  | Price ($) |
($) Per Share |  |  |  |  |  |  | Exercisable |  |  | Per Share |
11.51 |  |  | - | 15.53 |  |  |  | 76,240 |  |  |  | 13.39 |
16.20 |  |  | - | 25.50 |  |  |  | 33,600 |  |  |  | 19.41 |
|  |  |  |  |  |  |  | 109,840 |  |  |  | 15.23 |
The weighted-average grant-date fair value per option granted during the years ended December 31, 2024 and 2023 was $6.39 and $5.94, respectively. There were 6,200 and 4,000 stock options exercised during the years ended December 31, 2024 and 2023, respectively. Restricted Stock Units In connection with the restricted stock units (sometimes referred to as "RSUs") granted to non-employee directors, the Company accrues compensation expense based on the estimated number of shares expected to be issued, utilizing the most current information available to the Company at the date of the consolidated financial statements. The Company estimates the fair value of the restricted stock unit awards based upon the market price of the underlying common stock on the date of grant. A summary of non-vested restricted stock units under the Company’s non-employee director share-based incentive compensation plan is as follows:
|  |  |  |  |  | Weighted Average |
|  |  |  |  |  | Grant Date |
Year ended December 31, 2024 |  | Number of Shares |  |  | Price per Share |
Unvested as of January 1, 2024 |  |  | 19,587 |  |  | $ | 13.22 |
Granted |  |  | 58,760 |  |  |  | 12.20 |
Vested and issued |  |  | (33,801 | ) |  |  | 11.74 |
Cancelled/forfeited |  |  | — |  |  |  | — |
Unvested as of December 31, 2024 |  |  | 44,546 |  |  | $ | 12.99 |
|  |  |  |  |  | Weighted Average |
Year ended December 31, 2023 |  | Number of Shares |  |  | Price per Share |
Unvested at January 1, 2023 |  |  | 41,129 |  |  | $ | 13.20 |
Granted |  |  | 45,412 |  |  | $ | 12.37 |
Vested and issued |  |  | (66,954 | ) |  | $ | 12.63 |
Cancelled/forfeited |  |  | — |  |  |  | — |
Unvested at December 31, 2023 |  |  | 19,587 |  |  | $ | 13.22 |
During the year ended December 31, 2024 and 2023, the Company also issued 8,960 RSUs under a consulting agreement for advisory services to the Board of Directors. The principal of the consulting firm was elected as the Chairman of the Board of Directors in December 2023. During 2024 and 2023, the Company’s Board of Directors approved the Executive Salary Swap Plan to prospectively swap a portion of certain executive’s salaries for a 12 month period (10% minimum, up to 50%) otherwise payable in cash for a grant of RSUs (with each RSU representing a contingent right to receive one share of the Company’s Common Stock) at a fixed rate of $10 per share, rounded down to the nearest whole RSU. The Restricted Stock Units vested at the date of the grant. The Company issued 13,979 and 6,739 RSUs under this arrangement during December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, there was approximately $1,419 and $682, respectively, of total unrecognized compensation cost related to non-vested share-based compensation arrangements, including stock options and restricted stock units. This compensation cost is expected to be recognized approximately over one to four years.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration