XML 26 R14.htm IDEA: XBRL DOCUMENT

Note 6 - Stock-based Compensation

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Shareholders' Equity and Share-Based Payments [Text Block]

Note 6 – Stock-Based Compensation

We recorded non-cash stock compensation expense in each period as follows:

		Year ended December 31,
		2024				2023
Stock options		$	640			$	522
Restricted stock			58				6
Total		$	698			$	528

We have various stock-based employee compensation plans, for which compensation cost is recognized in the financial statements. The cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity award).

Our stockholders have approved various equity-based plans that permit the grant of stock options, restricted stock and other equity-based awards. In addition, our stockholders have approved the grant of stock options outside of these plans.

On July 16, 2024, our stockholders approved the 2024 Long-Term Incentive Plan (“2024 LTIP”) as the successor plan to the 2014 Long-Term Incentive Plan (“2014 LTIP”) that expired on June 2, 2024. Under the 2024 LTIP, a total of 2,000,000 shares of common stock were made available for grant of awards.. Of the total number of shares of common stock available for awards under the 2024 LTIP, no more than 800,000 shares of common stock may be used for awards other than stock options and stock appreciation rights. Grants under the 2024 LTIP may be awarded through July 15, 2034.

Stock options granted under the 2024 LTIP and 2014 LTIP are either Incentive Stock Options (“ISOs”) or Non-Qualified Stock Options (“NQSOs”). Key employees are eligible to receive ISOs and NQSOs; however, directors and consultants are eligible to receive only NQSOs. Stock options vest in equal installments on the first, second and third anniversaries of the grant date and expire on the seventh anniversary of the grant date. As of December 31, 2024, there were 258,060 stock options outstanding under the 2024 LTIP and 848,376 stock options outstanding under the 2014 LTIP.

As of December 31, 2024, there was $1,108 of total unrecognized compensation costs related to outstanding stock options, which we expect to recognize over a weighted average period of 2.1 years.

We use the Black-Scholes option-pricing model to estimate fair value of stock-based awards. The following weighted average assumptions were used to value options granted during the years ended December 31, 2024 and 2023:

		Year ended December 31,
		2024				2023
Risk-free interest rate			4.3	%			4.1	%
Volatility factor			58	%			57	%
Weighted average expected life (years)			4.7				4.9
Forfeiture rate			10.0	%			10.0	%
Dividends			0.0	%			0.0	%

We calculate expected volatility for stock options by taking an average of historical volatility over the expected term. The computation of expected term was determined based on historical experience of similar awards and consideration of the contractual terms of the stock-based awards and vesting schedules. The interest rate for periods within the contractual life of the award is based on the U.S. Treasury yield in effect at the time of grant. Forfeiture rates are calculated by dividing unvested shares forfeited by beginning shares outstanding. The pre-vesting forfeiture rate is calculated yearly and is determined based on historical experience.

The following tables summarize data for the stock options issued by us:

Year ended December 31, 2024
		Number of shares				Weighted average exercise price per share				Weighted average remaining contractual term				Aggregate intrinsic value
Shares under option – January 1			1,250,595			$	7.10
Options granted			261,520				7.85
Options exercised			(298,293	)			7.08
Options forfeited or expired			(107,386	)			8.41
Shares under option – December 31			1,106,436			$	7.15				4.53			$	741
Vested and expected to vest - December 31			1,003,942			$	7.17				4.36			$	674

Options exercisable – December 31			625,826			$	7.18				3.18			$	477

Year ended December 31, 2023
		Number of shares				Weighted average exercise price per share
Shares under option – January 1			1,425,693			$	6.72
Options granted			231,650				6.69
Options exercised			(254,393	)			5.83
Options forfeited or expired			(152,355	)			5.06
Shares under option – December 31			1,250,595			$	7.10

Options exercisable – December 31			789,209			$	7.56

The following table represents additional information about stock options outstanding at December 31, 2024:

				Option outstanding												Options exercisable
Range of exercise prices				Number of outstanding options				Weighted- average remaining contractual life				Weighted- average exercise price				Number of options exercisable				Weighted- average exercise price
$4.07	-	$6.51			316,702				4.01			$	5.68				235,589			$	5.83
$6.84	-	$6.97			317,594				5.21				6.88				176,157				6.92
$7.86	-	$7.86			258,060				6.95				7.86				0				0
$8.25	-	$9.85			214,080				1.37				8.89				214,080				8.89

$4.07	-	$9.85			1,106,436				4.53			$	7.15				625,826			$	7.18

The weighted average fair value of options granted during the years ended December 31, 2024 and 2023 was $4.08 and $3.48, respectively. The total intrinsic value of options (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) exercised during the years ended December 31, 2024 and 2023 was $1,007 and $556, respectively.

Cash received from stock option exercises under our stock-based compensation plans for the years ended December 31, 2024 and 2023 was $1,999 and $1,248, respectively.

Restricted stock awards vest in equal annual installments over three years. The Company granted restricted stock awards of 35,700 shares and 4,029 shares for the years ended December 31, 2024 and 2023, respectively. The average grant date fair value of restricted stock awards was $8.71 and $7.45 for the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024, there was $280 of total unrecognized compensation costs related to outstanding restricted shares.

There were 1,707,440 shares of common stock available for future issuance under equity compensation plans as of December 31, 2024.