XML 33 R18.htm IDEA: XBRL DOCUMENT v3.25.0.1
STOCKHOLDERS’ EQUITY (DEFICIT)
 12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
STOCKHOLDERS’ EQUITY (DEFICIT)

NOTE 9— STOCKHOLDERS’ EQUITY (DEFICIT)

 

(a) Summary Employee Option Information

 

The Company’s stock option plans provide for the grant to officers, directors and employees of options to purchase shares of common stock. The purchase price may be paid in cash or, if the option is “in-the-money” at the end of the option term, it is automatically exercised “net.” In a net exercise of an option, the Company does not require a payment of the exercise price of the option from the option holder but reduces the number of shares of common stock issued upon the exercise of the option by the smallest number of whole shares that has an aggregate fair market value equal to or in excess of the aggregate exercise price for the option shares covered by the option exercised. Each option is exercisable for one share of the Company’s common stock. Most options expire within five to ten years from the date of the grant and generally vest over a three-year period from the date of the grant.

 

 

At December 31, 2024, 70,806 options were available for grant under the Amended and Restated 2006 Stock Incentive Plan and no options were available for grant under the 2006 Stock Option Plan for Non-Employee Directors. In 2024 and 2023, 8,350 (6,900 to directors and executive officers and 1,450 to other employees) and 14,936 (11,874 to directors and executive officers and 3,062 to other employees) options, respectively, were granted. In 2024 and 2023, there were no grants to non-employees (other than the non-employee directors and executive officers). The fair value of the options issued was $53,000 and $47,000 in 2024 and 2023, respectively.

 

7,708 options were exercised in the year ended December 31, 2024. 2,187 warrants and no options were exercised in the year ended December 31, 2023. The intrinsic value of options outstanding and of options exercisable at December 31, 2024 was $806,000 and $758,000, respectively. The intrinsic value of options outstanding and of options exercisable at December 31, 2023 was $40,000 and $35,000, respectively.

 

The Company utilized the Black-Scholes option-pricing model to estimate fair value, utilizing the following assumptions for the respective years (all in weighted averages):

 

   2024   2023 
Risk-free interest rate   3.9%   4.0%
Expected term of options, in years   4.88    4.01 
Expected annual volatility   195.5%   85.0%
Expected dividend yield   —%   —%
Determined weighted average grant date fair value per option  $6.29   $3.16 

 

The expected term of the options is the length of time until the expected date of exercising the options. The Company estimated volatility by considering historical stock volatility over the expected term of the option. The risk-free interest rates are based on the U.S. Treasury yields for a period consistent with the expected term. The Company expects no dividends to be paid. The Company believes that the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in determining the estimated fair value of the Company’s stock options granted in the years ended December 31, 2024 and 2023. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by persons who receive equity awards.

 

(b) Summary Option Information

 

A summary of the Company’s option plans as of December 31, 2024 and 2023, as well as changes during each of the years then ended, is presented below:

 

   2024   2023 
  

Number of

Options

(in shares)

  

Weighted

Average

Exercise

Price Per Share

  

Number of

Options

(in shares)

  

Weighted

Average

Exercise

Price

 
Outstanding at beginning of year   71,893   $6.41    58,966   $6.72 
Granted at market price   8,350   $6.48    14,936   $5.33 
Exercised   7,708   $5.28    —   $— 
Forfeited or expired   2,386   $7.23    2,009   $7.15 
Outstanding at end of year   70,149   $6.52    71,893   $6.41 
Exercisable at end of year   66,032   $6.52    64,366   $6.44 

 

 

Summary information regarding the options outstanding and exercisable at December 31, 2024 is as follows:

 

    Outstanding   Exercisable 

Range of

Exercise Prices

  

Number

Outstanding

  

Weighted

Average

Remaining

Contractual

Life

  

Weighted

Average

Exercise

Price

  

Number

Exercisable

  

Weighted

Average

Exercise

Price

 
    (in shares)   (in years)       (in shares)     
$2.88 – $6.08    34,817    3.33   $5.16    32,150   $5.14 
$6.10 – $10.08    35,332    3.48   $7.86    33,882   $7.83 
      70,149              66,032      

 

Stock-based compensation expense included in selling, general and administrative expense in the Company’s consolidated statements of operations was $56,000 and $55,000 for the years ending December 31, 2024 and 2023, respectively.

 

The total compensation cost related to non-vested awards not yet recognized was $19,000 and $18,000 as of December 31, 2024 and 2023, respectively.

 

(c) Warrants

 

The Company has issued warrants at exercise prices equal to or greater than the market value of the Company’s common stock at the date of issuance. A summary of warrant activity follows:

 

   2024   2023 
  

Number of

Shares

Underlying

Warrants

  

Weighted

Average

Exercise

Price

  

Number of

Shares

Underlying

Warrants

  

Weighted

Average

Exercise

Price

 
Outstanding at beginning of year   —   $—    2,187   $2.08 
Granted   —   $—    —   $— 
Exercised   —   $—    (2,187)  $(2.08)
Forfeited or expired   —   $—    —   $— 
Outstanding and exercisable at end of year   —   $—    —   $—