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Note 7 - Share-Based Compensation

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

7.	Share-Based Compensation

Stock Options

For the three months ended September 30, 2025 and 2024, the Company recognized share-based compensation expense related to stock options of $0 and $(20,000), respectively. For the nine months ended September 30, 2025 and 2024, the Company recognized share-based compensation expense related to stock options of $2,237 and $14,000, respectively. For the three months ended September 30, 2025 and 2024, the tax benefit available from share-based compensation expense related to stock options was $0 and $1,470, respectively. For the nine months ended September 30, 2025 and 2024, the tax benefit available from share-based compensation expense related to stock options was $0 and $4,380, respectively.

Restricted Stock Units

For the three months ended September 30, 2025 and 2024, the Company recognized share-based compensation expense related to restricted stock units of $84,000 and $(129,000), respectively. For the nine months ended September 30, 2025 and 2024, the Company recognized share-based compensation expense related to restricted stock units of $136,886 and $93,000, respectively. For the three months ended September 30, 2025 and 2024, the tax benefit available from share-based compensation expense related to restricted stock units was $21,804 and $6,872, respectively. For the nine months ended September 30, 2025 and 2024, the tax benefit available from share-based compensation expense related to restricted stock units was $34,221 and $28,985, respectively.

Phantom Stock Awards

On and effective as of March 24, 2022, the Corporation issued an award of 111,111 Phantom Stock Units to each of its executives: Kori G. Belzer; William Linnane; and Ron Lutz. Each Phantom Stock Unit represents the right of the grantee to receive cash payments based on the fair market value of the Corporation's common stock at the time of vesting. Vesting will occur in three tranches of one-third each over the three (3) year period following the grant date, provided that (i) the Grantee is an employee of the Company at the time and (ii) the Corporation has achieved 90% of the agreed upon the applicable financial target for the year commencing with 2022 (which was EBITDA for 2022), but tranches will rollover to the following year and be payable upon achievement of 120% of the agreed upon applicable financial target for such following year. The Phantom Stock Units do not possess the rights of common stockholders of the Corporation, including any voting or dividend rights, and cannot be exercised or traded for the Corporation's common stock. Due to the cash settlement feature, the Phantom Stock Units are classified as liabilities in accrued expenses and other current liabilities and other long-term liabilities in the consolidated balance sheet.

On and effective as of September 20, 2023, the Corporation issued an award of 181,818 Phantom Stock Units to each of its executives: Kori G. Belzer; William Linnane; and Ron Lutz. Each Phantom Stock Unit represents the right of the grantee to receive cash payments based on the fair market value of the Corporation's common stock at the time of vesting. Vesting will occur in three tranches of one-third each over the three (3) year period following the grant date, provided that (i) the Grantee is an employee of the Company at the time and (ii) the Corporation has achieved 70% of the agreed upon applicable financial target for the year commencing with 2023 (which was EBITDA for 2023), with the first criteria having been achieved, the second has respectively vested on the second and will vest on the third anniversary dates of the vesting of the first year’s tranche with no additional vesting criteria. The Phantom Stock Units do not possess the rights of common stockholders of the Corporation, including any voting or dividend rights, and cannot be exercised or traded for the Corporation's common stock. Due to the cash settlement feature, the Phantom Stock Units are classified as liabilities in accrued expenses and other current liabilities and other long-term liabilities in the consolidated balance sheet.

During the three months ended September 30, 2025 and September 30, 2024 the Company has recognized compensation expense of $233,334 and $0, respectively, related to the 2022 and 2023 Phantom Stock Awards. During the nine months ended September 30, 2025 and September 30, 2024, the Company has recognized compensation expense of $699,635 and $0, respectively related to the 2022 and 2023 Phantom Stock Awards. Amounts expensed during the three months ended September 30, 2025 include final cash payments included in the severance agreements of certain executives. Remaining amounts owed under these agreements after payments to retired executives are approximately $62 thousand and are reflected within accrued expenses and other current liabilities on the condensed consolidated balance sheets as of September 30, 2025.