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Note 8 - Shareholders' Equity
3 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Shareholders' Equity and Share-Based Payments [Text Block]

NOTE 8. STOCKHOLDERS EQUITY

 

Payment of cash dividends is within the discretion of the Company’s Board of Directors and is dependent on earnings, operations, capital requirements, general financial condition of the Company, and general business conditions. The dividend rate per share was $0.0075 per month for fiscal year 2025 and through  September 2025.

 

In September 2025, the Board authorized the continuance of the monthly dividend of $0.0075 per share from October through December 2025, at which time it will be considered for continuation by the Board.

 

The Company has a share repurchase program, approved by the Board of Directors, authorizing the Company to annually purchase up to $5.0 million of its outstanding common shares, as market and business conditions warrant, on the open market in compliance with Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934. The repurchase program has been in place since December 2012, and the Board of Directors has annually renewed the repurchase program each calendar year. The Company announced on February 25, 2022, that the Board of Directors of the Company approved an increase to the limit of its annual share buyback program from $2.75 million to $5.0 million. The Company announced on September 19, 2024, that the Board of Directors of the Company approved an update authorizing the Company to repurchase up to $5.0 million of its outstanding common shares between September 13, 2024, and December 31, 2024. The total amount of shares that may be repurchased under the program was $6.5 million in 2024 and is $5.0 million in 2025. The acquired shares may be used for corporate purposes, including shares issued to employees in the Company’s stock-based compensation programs. During the three months ended September 30, 2025, the Company repurchased 159,074 of its class A shares for $400,000. During the three months ended September 30, 2024, the Company repurchased 197,887 of its class A shares for $520,000.

 

The Inflation Reduction Act of 2022 imposes a 1% excise tax on stock buybacks by publicly traded corporations. Any excise tax incurred is recognized as part of the cost basis of the shares acquired in the Consolidated Statements of Shareholders' Equity. The impact of these provisions was $4,000 for the three months ended September 30, 2025, and $5,000 for the three months ended September 30, 2024. All amounts presented in this report related to the Company's share repurchases and the Company's share repurchase authorization exclude such excise taxes, to the extent applicable, unless otherwise indicated.

 

Stock Option Plans

 

The Company’s stock option plans allow for the granting of class A shares as either incentive or non-qualified stock options to employees and non-employee directors. The terms and conditions of these options, including exercise price, vesting schedule, and expiration, are determined by the Compensation Committee of the Board of Directors.

 

Under the 1989 Plan, there were 352,000 and 229,000 stock options outstanding and exercisable as of September 30, 2025, and 2024, respectively. The weighted average exercise prices of these options were $4.76 and $6.05, respectively. 

 

Under the 1997 Plan, there were 2,000 stock options outstanding and exercisable as of both September 30, 2025, and September 30, 2024, with a weighted average exercise price of $2.74.

 

Stock Option Activity

 

There were no stock options granted, forfeited or exercised during the three months ended September 30, 2025, or 2024.  

 

Share-Based Compensation Expense

 

The Company measures share-based compensation expense at the grant date, based on the fair value of the awards. This expense is recognized ratably over the awards’ vesting period. For the three months ended September 30, 2025, the Company recognized share-based compensation expense of $9,000. For the three months ended September 30, 2024, no share-based compensation expense was recognized. As of both September 30, 2025, and September 30, 2024, there were no unrecognized share-based compensation costs related to share-based awards under the plans.