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Note 9 - Shareholders' Equity
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Equity [Text Block]

9. SHAREHOLDERS’ EQUITY

 

At September 30, 2024and December 31, 2023 the Company had 28,035,613 and 25,333,870 shares of common stock outstanding, respectively and 245,000,000 authorized shares. In addition, as of September 30, 2024, and December 31, 2023 the Company had 5,000,000 authorized but unissued shares of preferred stock.

 

Stock Option Plans

 

From time to time, the Company may grant stock options under its incentive plan covering shares of common stock to employees of the Company. Stock options, when exercised, are settled through the payment of the exercise price in exchange for new shares of stock underlying the option. These awards typically expire ten years from the grant date.

 

For the three and nine months ended September 30, 2024 and 2023, there was no compensation expense related to stock options. As of  September 30, 2024  and  September 30, 2023, all stock options had vested. No stock options were granted or exercised during the three and nine months ended September 30, 2024 and 2023.  Stock options for 1,000 shares expired during the three months ended September 30, 2024. The stock options had de minimis intrinsic values for the periods reported. Presented below is information for stock options outstanding and exercisable as of September 30, 2024, and December 31, 2023:

 

  

September 30, 2024

  

December 31, 2023

 
      Weighted      Weighted 
      Average      Average 
  Number of  Exercise  Number of  Exercise 
  

Shares

  

Price

  

Shares

  

Price

 
                 

Stock options outstanding and exercisable

  22,176  $30.48   23,176  $38.92 

 

The following table summarizes information for stock options outstanding and for stock options exercisable at September 30, 2024 by the remaining contractual term:

Options Outstanding and Exercisable

 
   

Exercise

  

Weighted

  

Remaining

 
   

Price

  

Average

  

Contractual

 

Number of

  

Range

  

Exercise

  

Term

 

Shares

  

Low

  

High

  

Price

  

(years)

 
                  
16,500  $7.20  $11.60  $10.00   3.0 
5,676   90.00   90.00   90.00   0.3 
                  
22,176  $7.20  $90.00  $30.48   2.3 

 

 

Restricted Stock

 

The Company grants restricted stock under its incentive plans covering shares of common stock to employees and directors of the Company.  Significantly all of the restricted stock awards are time-based awards and are amortized ratably over a requisite service period. Time-based awards vest ratably following the grant date, provided the grantee is employed on the vesting dates.  The Company has one restricted stock award that vests if the Company's share price is equal to or greater than $2.00 for 20 consecutive trading days within the period beginning March 19, 2025 and ending March 18, 2027.  The grant date fair value of this award is amortized over a derived requisite service period from the fair value model.  Forfeitures of restricted stock awards are recognized as they occur.  Restricted stock granted to employees, when vested, may be settled through the net issuance of shares, reduced by the number of shares required to pay withholding taxes. Non-vested shares of restricted stock are not included in common shares outstanding until vesting has occurred.

 

The following table presents the changes in non-vested restricted stock awards to all employees and directors for the nine months ended September 30, 2024:

 

      

Weighted-Avg.

 
      

Grant Date

 
      

Fair Value

 
  

Shares

  

Per Share

 
         

Non-vested restricted stock as of December 31, 2023

  855,236  $2.63 

Granted

  1,303,000  $0.96 

Vested

  (673,041) $2.12 

Modifications (accelerated vesting)

  (20,000) $1.64 

Forfeited

  (117,500) $1.18 

Non-vested restricted stock as of September 30, 2024

  1,347,695  $1.41 

 

For the nine months ended September 30, 2024 and 2023, the Company recognized $0.9 million and $2.0 million, respectively, of stock compensation expense related to restricted stock grants.  Total compensation cost related to non-vested awards not yet recognized in the Company’s Condensed Consolidated Statements of Operations as of September 30, 2024 was $0.7 million. This cost is expected to be recognized over a weighted average period of 1.5 years.

 

Dividends

 

On August 9, 2023, the Board of Directors suspended the Company’s dividend payment program.  As a result, no dividends were paid for the nine months ended September 30, 2024.  During the three-month periods ended March 31, 2023, and  June 30, 2023, the Company declared and paid dividends of $0.0225 per share of common stock. Dividends paid for the three and six months ended June 30, 2023, were $0.6 million and $1.2 million, respectively.

 

Share Repurchase Program

 

On April 26, 2023, the Board of Directors of the Company authorized and approved a share repurchase program for up to $5.0 million of the outstanding shares of the Company’s common stock.  On March 19, 2024, the Board of Directors authorized and approved an extension of the ongoing share repurchase program.  Subject to any future extensions, the repurchase program is scheduled to expire on the earlier of  June 30, 2025, when a maximum of $5.0 million of the Company’s common stock has been repurchased, or when the program is discontinued by the Board of Directors.

 

Under the stock repurchase program, shares are repurchased from time to time in the open market or through negotiated transactions at prevailing market prices, or by other means in accordance with federal securities laws. Repurchases are made at management’s discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. The repurchase program is funded using the Company’s working capital. The repurchased shares are cancelled and therefore will not be held in treasury or reissued.

 

The following table presents the activity in the share repurchase program for the three and nine months ended September 30, 2024 and 2023:

 

  

Three Months Ended September 30,

  

Nine Months Ended September 30,

 
  

2024

  

2023

  

2024

  

2023

 
  

(in thousands)

         
                 

Shares repurchased

  19,000   -   482,500   163,300 

Weighted average price per share

 $1.050  $-  $1.090  $1.480 

Value of shares repurchased

 $19,950  $-  $525,925  $240,793