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Note 12 - Share-based Incentive Plan
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

12. SHARE-BASED INCENTIVE PLAN

 

The Company maintains a restricted stock incentive plan for the purpose of attracting and retaining officers, employees, and non-employee board members. Share awards generally vest in equal annual installments over a three-to-ten year period from date of issuance. Non-vested shares have voting rights and are eligible for any dividends paid on shares of common stock. The Company recognized compensation cost for these fixed awards over the service vesting period, which represents the requisite service period, using the straight-line method. Prior to our IPO, the value of non-vested shares was calculated based on the offering price of the shares in the most recent private placement offering of $20.00, adjusted for stock dividends since granted and assumed selling costs, which management believed approximated fair market value as of the date of grant. Upon our IPO, the value of non-vested shares granted is generally calculated based on the closing price of our common stock on the date of the grant.  During our Annual Stockholders meeting, held on May 26, 2022, the Company's 2017 Incentive Award Plan was amended to increase the available shares for issuance from 1.1 million to 2.5 million and at our Annual Stockholders meeting, held on June 1, 2023, the Company's 2017 Incentive Award Plan was amended to increase the available shares for issuance from 2.5 million to 3.5 million and add an evergreen provision to, on April 1st and October 1st of each year, automatically increase the maximum number of shares of common stock available under the plan to 15% of the Company’s outstanding shares of common stock, if on such date 3,500,000 (as adjusted for any reverse splits) is less than 15% of the Company’s then-outstanding shares of common stock.

 

During our Annual Stockholders meeting, held on May 26, 2022, the Company's 2017 Incentive Award Plan was amended to increase the available shares for issuance from 1.1 million to 2.5 million and at our Annual Stockholders meeting, held on June 1, 2023, the Company's 2017 Incentive Award Plan was amended to increase the available shares for issuance from 2.5 million to 3.5 million and add an evergreen provision to, on April 1st and October 1st of each year, automatically increase the maximum number of shares of common stock available under the plan to 15% of the Company's outstanding shares of common stock, if on such date 3,500,000 (as adjusted for any reverse splits) is less than 15% of the Company's then-outstanding shares of common stock.

 

A summary of the activity for the Company’s restricted stock was as follows:

 

Outstanding shares:

 

Common Shares

 
     

Balance at December 31, 2023

  760,995 

Granted

  1,288,493 

Forfeited

  (205,019)

Vested

  (673,664)

Balance at December 31, 2024

  1,170,805 

   

The non-vested restricted shares outstanding as of December 31, 2024, will vest over the next one to four years.  As of  December 31, 2024, there were approximately 213,000 shares available to grant under the Company's 2017 Incentive Award Plan.  Removed from the Granted and Vested totals noted above are 149,253 shares of common stock that were granted to the CEO in connection to his annual bonus in March 2024, as set by the Board of Directors, that vested immediately.  These 149,253 shares were voluntarily returned to the Company in December 2024 by the CEO so they could be distributed to the employees as part of their annual grants in 2025. 

 

Share-based compensation expense was approximately $1.4 million and $1.0 million for the years ended December 31, 2024 and 2023, respectively.  As of December 31, 2024, future unrecognized stock compensation related to unvested shares totaled approximately $1.4 million.