XML 30 R14.htm IDEA: XBRL DOCUMENT

Stock-based Compensation

12 Months Ended

Dec. 31, 2024

Note 8. Stock-Based Compensation

The 2013 Equity Incentive Plan (the “2013 Plan”) authorizes the issuance of nonqualified stock options and restricted stock units. Payment for the shares may be made in cash, shares of the Company’s common stock or a combination thereof. Under the terms of the 2013 Plan, incentive stock options and non-qualified stock options are granted at a minimum of 100% of fair market value on the date of grant and may be exercised after vesting at various times depending upon the terms of the option. All existing options expire 10 years from the date of grant or one year from the date of death. The terms of the grants require an acceleration of vesting upon a change in control of the Company.

Under the 2013 Plan, the Company is authorized to issue up to 600,000 shares through stock options and awards such as restricted stock or restricted stock units. As of December 31, 2024, under the 2013 Plan, 46,000 shares had been issued, options to purchase an aggregate of 185,000 shares were outstanding, of which options to purchase 97,000 shares were exercisable. As of December 31, 2024, the Company also had 84,000 restricted stock units outstanding. There are 285,000 additional shares available for issuance pursuant to awards that may be granted under the 2013 Plan in the future.

Stock Options

In 2024, the Company granted 25,000 non-qualified stock options to one of its non-employee board members and 10,000 non-qualified stock options to an employee. In 2023, the Company granted 25,000 non-qualified stock options each to its Chief Executive Officer and to three of its four non-employee board members. All of the options vest 20% on the grant date, with an additional 20% vesting annually thereafter.

The weighted average assumptions made in estimating the fair value of the options on the grant date based upon the BSM option-pricing model for the year ended December 31, 2024 and 2023 are as follows:

	2024	2023
Dividend Yield	0.00%	0.00%
Expected Volatility	25.06%	25.56%
Risk Free Interest Rate	4.49%	4.35%
Expected Life	6 Years	6 Years

The Company calculates expected volatility for stock options and other awards using the Company's historical volatility as the Company believes the expected volatility will approximate historical volatility.

There were no options exercised during the years ended December 31, 2024 and 2023. The Company had 25,000 and 225,000 options expire during the years ended December 31, 2024 and 2023, respectively.

The following table summarizes the activity for outstanding incentive stock options under the 2013 Plan:

	Options Outstanding
	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Balance at December 31, 2022		300,000		$	4.35		1.4
Granted		100,000			4.25		9.7
Exercised		0
Expired		(225,000	)		4.57		0.0
Balance at December 31, 2023		175,000			4.06		6.8
Granted		35,000			4.05		9.6
Exercised		0
Expired		(25,000	)		4.39		0.0
Balance at December 31, 2024		185,000		$	3.99		7.8	$	219
Vested and exercisable as of December 31, 2024		97,000		$	3.80			$	132

As of December 31, 2024, the unrecognized compensation expense related to outstanding stock options was $115, which the Company expects to recognize over the four year vesting period. To the extent the forfeiture rate is different than we have anticipated, stock-based compensation related to the awards will be different from expectations. The Company recognized compensation expense in connection with the vesting of options of $46 and $38 during the years ended December 31, 2024 and 2023, respectively.

Restricted stock units

The 2013 Plan authorizes the issuance of restricted stock units. Stock-based compensation expense is determined on the grant date based on the closing market value of our common stock. The amount of expense is calculated based on an estimate of the number of awards expected to vest at the end of each vesting period and is expensed evenly over the vesting period. In connection with the time of vesting and issuance of shares, an eligible recipient of common stock may elect to have some shares withheld by the Company to satisfy any requirement for withholding taxes.

In 2023, the Company granted 35,000 restricted stock units to its Chief Executive Officer and 17,500 restricted stock units to each of its four non-employee board members. The restricted stock units vest 20% on the first anniversary of the grant and 20% annually thereafter.

The following table summarizes restricted stock unit activity for the year ended December 31, 2024:

	Unvested Restricted Stock Units
	Number of Shares			Weighted-Average Grant-Date Fair Value
Unvested as of December 31, 2023	105,000		$	4.11
Granted	0			0.00
Vested	(21,000	)		4.11
Forfeited/canceled	0			0.00
Unvested as of December 31, 2024	84,000		$	4.11

As of December 31, 2024, the unrecognized compensation expense related to outstanding restricted stock units was $316, which the Company expects to recognize over a period of four years. The Company recognized compensation expense in connection with the vesting of restricted stock units of $86 and $29 for years ended December 31, 2024 and 2023, respectively.