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STOCK-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION

NOTE 16. STOCK-BASED COMPENSATION

 

The Company recorded pre-tax compensation expense related to the grant of stock options and restricted stock issued of $128,519 and $452,071 for the years ended December 31, 2024 and 2023, respectively.

 

As of December 31, 2024, the Company had adopted ten separate stock option and restricted stock plans: (i) the 2005 Stock Option and Restricted Stock Plan (the “2005 Plan”), (ii) the 2006 Stock Option and Restricted Stock Plan (the “2006 Plan”), (iii) the 2007 Stock Option and Restricted Stock Plan (the “2007 Plan”), (iv) the 2008 Stock Option and Restricted Stock Plan (the “2008 Plan”), (v) the 2011 Stock Option and Restricted Stock Plan (the “2011 Plan”), (vi) the 2013 Stock Option and Restricted Stock Plan (the “2013 Plan”), (vii) the 2015 Stock Option and Restricted Stock Plan (the “2015 Plan”), (viii) the 2018 Stock Option and Restricted Stock Plan (the “2018 Plan”), (ix) the 2020 Stock Option and Restricted Stock Plan (the “2020 Plan”), and (x) the 2022 Stock Option and Restricted Stock Plan (the “2022 Plan”). The 2005 Plan, 2006 Plan, 2007 Plan, 2008 Plan, 2011 Plan, 2013 Plan, 2015 Plan, 2018 Plan, 2020 Plan and 2022 Plan are referred to as the “Plans.”

 

 

Stock option grants. The Company believes that such awards better align the interests of our employees with those of its stockholders. Option awards have been granted with an exercise price equal to the market price of its stock at the date of grant with such option awards generally vesting based on the completion of continuous service and having ten-year contractual terms. These option awards typically provide for accelerated vesting if there is a change in control (as defined in the Plans). The Company has registered all shares of common stock that are issuable under its Plans with the SEC. A total of 137,042 shares remained available for awards under the various Plans as of December 31, 2024.

 

The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model.

 

Activity in the various Plans during the years ended December 31, 2024 and 2023 is reflected in the following table:

 

Options  Number of
Shares		   Weighted
Average
Exercise Price		 
Outstanding at January 1, 2024   53,600   $45.55 
Granted   —    — 
Exercised   —    — 
Forfeited   (1,100)   (65.00)
Outstanding at December 31, 2024   52,500   $45.14 
Exercisable at December 31, 2024   52,500   $45.14 

 

Options  Number of
Shares		   Weighted
Average
Exercise Price		 
Outstanding at January 1, 2023   53,950   $45.80 
Granted   —    — 
Exercised   —    — 
Forfeited   (350)   (83.20)
Outstanding at December 31, 2023   53,600   $45.55 
Exercisable at December 31, 2023   53,600   $45.55 

 

The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model

 

The Plans allow for the cashless exercise of stock options. This provision allows the option holder to surrender/cancel options with an intrinsic value equivalent to the purchase/exercise price of other options exercised. There were no shares surrendered pursuant to cashless exercises during the years ended December 31, 2024 and 2023.

 

At December 31, 2024 and 2023, the aggregate intrinsic value of options outstanding was approximately $-0- and $-0-, respectively, and the aggregate intrinsic value of options exercisable was approximately $-0- and $-0-, respectively.

 

 

The following table summarizes the range of exercise prices and weighted average remaining contractual life for outstanding and exercisable options under the Company’s option plans as of December 31, 2024:

 

    Outstanding options  Exercisable options
Exercise price
range		   Number of
options		   Weighted
average
remaining
contractual life		  Number of
options		   Weighted average
remaining
contractual life
                
$0.01 to $49.99    37,000   5.6 years   37,000   5.6 years
$50.00 to $69.99    14,000   3.8 years   14,000   3.8 years
$70.00 to $89.99    1,500   1.4 years   1,500   1.4 years
                   
 Total    52,500   5.0 years   52,500   5.0 years

 

Restricted stock grants. The Board of Directors has granted restricted stock awards under the Plans. Restricted stock awards are valued on the date of grant and have no purchase price for the recipient. Restricted stock awards typically vest over one to four years corresponding to anniversaries of the grant date. Under the Plans, unvested shares of restricted stock awards may be forfeited upon the termination of service to or employment with the Company, depending upon the circumstances of termination. Except for restrictions placed on the transferability of restricted stock, holders of unvested restricted stock have full stockholder’s rights, including voting rights and the right to receive cash dividends.

 

A summary of all restricted stock activity under the equity compensation plans for the years ended December 31, 2024 and 2023 is as follows:

 

   Number of
Restricted
shares		   Weighted
average
grant date
fair value		 
Nonvested balance, January 1, 2024   53,875   $11.27 
Granted   80,197    2.12 
Vested   (33,375)   (11.25)
Forfeited   (49,947)   (2.48)
Nonvested balance, December 31, 2024   50,750   $5.48 

 

   Number of
Restricted
shares		   Weighted
average
grant date
fair value		 
Nonvested balance, January 1, 2023   79,125   $21.73 
Granted   35,000    5.00 
Vested   (56,625)   (21.29)
Forfeited   (3,625)   (22.41)
Nonvested balance, December 31, 2023   53,875   $11.27 

 

The Company estimated the fair market value of these restricted stock grants based on the closing market price on the date of the grant. As of December 31, 2024, there was $58,534 of total unrecognized compensation costs related to all remaining non-vested restricted stock grants, which will be amortized over the next thirty-seven months in accordance with their respective vesting scale.

 

The nonvested balance of restricted stock vests as follows:

 

Years ended  Number of
shares		 
     
2025   35,250 
2026   6,500 
2027   5,000 
2028   4,000 
2029   —