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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2024
Share-Based Payment Arrangement, Noncash Expense [Abstract] |
Stock-Based Compensation | Note 17 - Stock-Based Compensation The Company’s incentive compensation plan, titled “The 2022 Long Term Incentive Plan” (as amended to date, the “2022 Plan” or “Incentive Plan”) provides for the grant to eligible persons of stock options, share appreciation rights (“SAR”), restricted shares, restricted share units, performance shares, performance units, dividend equivalents and other share-based awards, referred to collectively as the awards. Time-vested stock option awards generally vest based on one to three years of service and have 10-year contractual terms. Share awards generally vest over one to three years. Certain option and share awards provide for accelerated vesting if there is a change in control (as defined in the Incentive Plan). The Company accounts for forfeitures of stock‑based awards as incurred. The 2022 Plan will terminate as to future awards on May 12, 2032. A proposal to increase the shares of Common Stock reserved for issuance under the 2022 Plan by 3,000,000 shares was approved by the Company’s Board and ratified by the stockholders on May 14, 2024. As a result, 5,804,977 shares of Common Stock have been reserved for general use issuance under the 2022 Plan, of which 3,125,031 were available for issuance as of December 31, 2024. Under the 2022 Plan, 2,132,113 shares of Common Stock have been reserved for issuance for settlement of stock appreciation rights outstanding, of which 1,791,660 were available for issuance as of December 31, 2024. Stock Options Time-Vested Options The Company recognizes stock-based compensation expense for time-vested stock option awards based on the fair value of the award on the grant date using the Black-Scholes option valuation model. Expected life in years for time-vested stock option awards was determined using the simplified method. The Company believes that it is appropriate to use the simplified method in determining the expected life for time-vested stock options because the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term for time-vested stock options. Expected volatility was based on the historical volatility of the Company’s stock. The risk-free interest rate was based on the United States Treasury bond rate for the expected life of the option. The expected dividend yield was based on the latest annualized dividend rate and the current market price of the underlying Common Stock on the date of the grant. Grant date fair values of time-vested stock option awards were estimated using the Black-Scholes option valuation model with the following assumptions:
|  |  |  |  |  |  |  | Expected |  | Risk Free |  | Grant Date |
|  |  |  |  |  | Expected |  | Dividend |  | Interest |  | Fair Value |
Grant Year |  | Grant Date |  | Expected Life |  | Volatility |  | Yield |  | Rate |  | Per Award |
2024 |  | 1/4/2024 |  | 6 years |  | 77.71% |  | 0.00% |  | 3.97% |  | $ | 1.94 |
2024 |  | 4/12/2024 |  | 6 years |  | 77.71% |  | 0.00% |  | 4.53% |  | $ | 2.57 |
2024 |  | 5/1/2024 |  | 6 years |  | 78.00% |  | 0.00% |  | 4.64% |  | $ | 2.50 |
2024 |  | 8/12/2024 |  | 6 years |  | 78.00% |  | 0.00% |  | 3.78% |  | $ | 2.51 |
2024 |  | 10/2/2024 |  | 6 years |  | 78.00% |  | 0.00% |  | 3.60% |  | $ | 7.64 |
2024 |  | 10/22/2024 |  | 6 years |  | 78.00% |  | 0.00% |  | 4.04% |  | $ | 8.86 |
A summary of the Company’s time-vested stock options activity and related information as of December 31, 2024 and 2023, and changes during the years then ended, is presented below:
|  |  |  |  | December 31, |  |  |  |
|  | 2024 |  |  | 2023 |
|  |  |  |  | Weighted- |  |  |  |  |  | Weighted- |
|  |  |  |  | Average |  |  |  |  |  | Average |
|  |  |  |  | Exercise |  |  |  |  |  | Exercise |
|  | Options |  |  | Price |  |  | Options |  |  | Price |
|  | Outstanding |  |  | (per share) |  |  | Outstanding |  |  | (per share) |
Outstanding at the beginning of the year |  |  | 1,330,381 |  |  | $ | 4.33 |  |  |  | 898,814 |  |  | $ | 5.12 |
Granted |  |  | 829,012 |  |  |  | 3.07 |  |  |  | 503,417 |  |  |  | 3.20 |
Exercised |  |  | (105,839 | ) |  |  | 4.48 |  |  |  | - |  |  |  | - |
Forfeited or expired |  |  | (173,391 | ) |  |  | 3.96 |  |  |  | (71,850 | ) |  |  | 6.27 |
Outstanding at the end of the year |  |  | 1,880,163 |  |  | $ | 3.80 |  |  |  | 1,330,381 |  |  | $ | 4.33 |
Exercisable at the end of the year |  |  | 696,649 |  |  | $ | 4.80 |  |  |  | 448,880 |  |  | $ | 5.88 |
A summary of the Company’s time-vested stock options outstanding as of December 31, 2024 is presented below:
|  |  |  |  | Weighted- |  |  |  |  |  |  |
|  |  |  |  | Average |  |  | Weighted- |  |  |  |
|  |  |  |  | Remaining |  |  | Average |  |  |  |
|  |  |  |  | Contractual |  |  | Exercise |  |  | Aggregate |
|  | Options |  |  | Term |  |  | Price |  |  | Intrinsic |
|  | Outstanding |  |  | (in years) |  |  | (per share) |  |  | Value |
Options outstanding |  |  | 1,880,163 |  |  |  | 7.9 |  |  | $ | 3.80 |  |  | $ | 10,029 |
Vested or expected to vest |  |  | 1,880,163 |  |  |  | 7.9 |  |  | $ | 3.80 |  |  | $ | 10,029 |
Options exercisable |  |  | 696,649 |  |  |  | 6.5 |  |  | $ | 4.80 |  |  | $ | 3,172 |
The Company issued 33,581 shares of Common Stock as a result of cashless exercise of 88,817 time-vested stock options and 17,022 shares of Common Stock as a result of cash exercise of 17,022 time-vested stock options during the year ended December 31, 2024. There were no time-vested stock options exercised during the year ended December 31, 2023. As of December 31, 2024, there was $1,599 of total unrecognized compensation expense related to time-vested stock options, which will be recognized over the average remaining requisite service period of 23 months. Inducement Options On June 26, 2023 (the “Grant Date”), the Company issued 300,000 inducement stock options (the “Inducement Options”) outside of the 2022 Plan to one individual. The Inducement Options were issued at an exercise price of $2.73 and have a contractual life of 10 years. Vesting of the Inducement Options is contingent on the achievement of the later of (i) the first date the closing price of one share of the Company’s Common Stock is equal to or greater than 125% of the exercise price; and (ii) the vesting of one-third of the options per year for three consecutive years after, and on each anniversary of, the Grant Date. The Company measured the fair value of the Inducement Options as of the Grant Date using a Monte Carlo Simulation Model considering the following assumptions: trading stock price as of the Grant Date of $2.74, risk-free rate of 3.65%, volatility rate of 69.81%, and a term of 10 years. As the likelihood of achieving the market condition is factored into the Monte Carlo model, the stock-based compensation for the Inducement Options will be recognized ratably over the three-year service period. Stock-based compensation for Inducement Options was $229 for the year ended December 31, 2024. As of December 31, 2024, there was $135 of unrecognized compensation expense related to the Inducement Options, which will be recognized over the remaining requisite service period of 18 months. Stock Appreciation Rights During 2020 and 2021, the Company granted 1,164,464 and 1,735,500 cash settled stock appreciation rights, respectively, to certain employees. Each stock appreciation right represents the right to receive a payment measured by the increase in the fair market value of one share of the Company’s stock from the date of grant of the stock appreciation right to the date of exercise of the stock appreciation right. The cash settled stock appreciation rights were classified as liabilities upon grant. As such, the Company measures the fair value of unvested cash settled stock appreciation rights using the Black-Scholes option valuation model and remeasures the fair value of the award each reporting period until the award is vested. Effective May 11, 2023, the outstanding cash settled stock appreciation rights were amended to provide for such awards to be settled in shares of the Company’s Common Stock rather than in cash as they were initially structured, resulting in a modification of the classification of these awards from liability to equity. The estimated fair value of the stock appreciation rights immediately preceding the modification was $1,738, estimated using the Black-Scholes option valuation model. Stock-based compensation for stock appreciation rights was $4 and $(1,058) for the year ended December 31, 2024 and 2023, respectively. A summary of the Company’s stock appreciation rights activity and related information as of December 31, 2024 and 2023 and changes during the year is presented below:
|  |  |  |  | December 31, |  |  |  |
|  | 2024 |  |  | 2023 |
|  |  |  |  | Weighted- |  |  |  |  |  | Weighted- |
|  |  |  |  | Average |  |  |  |  |  | Average |
|  |  |  |  | Exercise |  |  |  |  |  | Exercise |
|  | SARS |  |  | Price |  |  | SARS |  |  | Price |
|  | Outstanding |  |  | (per share) |  |  | Outstanding |  |  | (per share) |
Outstanding at the beginning of the year |  |  | 2,068,705 |  |  | $ | 2.20 |  |  |  | 2,132,113 |  |  | $ | 2.20 |
Granted |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Exercised |  |  | (415,702 | ) |  |  | 2.33 |  |  |  | (35,522 | ) |  |  | 2.24 |
Forfeited or expired |  |  | (8,188 | ) |  |  | 2.14 |  |  |  | (27,886 | ) |  |  | 2.20 |
Outstanding at the end of the year |  |  | 1,644,815 |  |  | $ | 2.17 |  |  |  | 2,068,705 |  |  | $ | 2.20 |
Exercisable at the end of the year |  |  | 1,644,815 |  |  | $ | 2.17 |  |  |  | 1,564,300 |  |  | $ | 2.15 |
The Company issued 39,640 shares of Common Stock as a result of cashless exercise of 115,702 cash settled stock appreciation rights and 300,000 shares of Common Stock as a result of cash exercise of 300,000 cash settled stock appreciation rights during the year ended December 31, 2024. As of December 31, 2024, the Company had 1,644,815 SARS outstanding, vested or expected to vest, and exercisable with a weighted average remaining contractual term of 5.7 years, a weighted average exercise price of $2.17 per share, and an aggregate intrinsic value of $11,166. Restricted Shares The Company recognizes stock-based compensation for restricted stock awards over the vesting period based on the fair market value of the stock on the date of the award, calculated as the average of the high and low trading prices for the Company’s Common Stock on the award date. A summary of the Company’s non-vested restricted shares as of December 31, 2024 and 2023, and changes during the years then ended is presented below:
|  |  |  |  | December 31, |  |  |  |
|  | 2024 |  |  | 2023 |
|  |  |  |  | Weighted- |  |  |  |  |  | Weighted- |
|  |  |  |  | Average |  |  |  |  |  | Average |
|  |  |  |  | Grant Date |  |  |  |  |  | Grant Date |
|  |  |  |  | Fair Value |  |  |  |  |  | Fair Value |
|  | Shares |  |  | (per share) |  |  | Shares |  |  | (per share) |
Non-vested at the beginning of the year |  |  | 857,583 |  |  | $ | 3.44 |  |  |  | 689,862 |  |  | $ | 3.20 |
Granted |  |  | 774,795 |  |  |  | 2.98 |  |  |  | 453,258 |  |  |  | 3.06 |
Vested |  |  | (283,282 | ) |  |  | 3.25 |  |  |  | (285,537 | ) |  |  | 2.24 |
Forfeited |  |  | (106,789 | ) |  |  | 3.19 |  |  |  | - |  |  |  | - |
Non-vested at the end of the year |  |  | 1,242,307 |  |  | $ | 3.22 |  |  |  | 857,583 |  |  | $ | 3.44 |
Expected to vest |  |  | 1,242,307 |  |  | $ | 3.44 |  |  |  | 857,583 |  |  | $ | 3.44 |
The fair value of stock awards vested during the years ended December 31, 2024 and 2023, was $900 and $905, respectively, based on the value at vesting date. As of December 31, 2024, there was $1,628 of unrecognized compensation expense related to non-vested restricted stock awards, which will be recognized over the average remaining requisite service period of 19 months. Stock-based compensation expense of $3,110 and $1,240 is included within selling, general and administrative expense for the years ended December 31, 2024 and 2023, respectively.

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