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STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION

NOTE 10. STOCK-BASED COMPENSATION

 

The Company recorded pre-tax compensation expense related to the grant of stock options and restricted stock issued of $13,824 and $40,695 for the three months ended March 31, 2025 and 2024, respectively.

 

As of March 31, 2025, 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 6,852 shares remained available for awards under the various Plans as of March 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 three months ended March 31, 2025 and 2024 is reflected in the following table:

 

Options  Number of
Shares		  

Weighted

Average
Exercise Price

 
Outstanding at January 1, 2025   2,625   $902.80 
Granted   —    — 
Exercised   —    — 
Forfeited   —    — 
Outstanding at March 31, 2025   2,625   $902.80 
Exercisable at March 31, 2025   2,625   $902.80 

 

Options  Number of
Shares		  

Weighted

Average
Exercise Price

 
Outstanding at January 1, 2024   2,280   $911.00 
Granted   —    — 
Exercised   —    — 
Forfeited   —    — 
Outstanding at March 31, 2024   2,280   $911.00 
Exercisable at March 31, 2024   2,280   $911.00 

 

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 three months ended March 31, 2025 and 2024.

 

At March 31, 2025 and December 31, 2024, 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 March 31, 2025:

 

    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 $999.99    1,850   5.4 years   1,850   5.4 years
$1,000.00 to $1,399.99    700   3.5 years   700   3.5 years
$1,400.00 to $1,799.99    75   1.1 years   75   1.1 years
                   
 Total    2,625   4.7 years   2,625   4.7 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 three months ended March 31, 2025 and 2024 is as follows:

 

   Number of
Restricted
shares		  

Weighted

average
grant date
fair value

 
Nonvested balance, January 1, 2025   2,537   $109.60 
Granted   —    — 
Vested   (1,687)   (70.60)
Forfeited   —    — 
Nonvested balance, March 31, 2025   850   $187.20 

 

   Number of
Restricted
shares		  

Weighted

average
grant date
fair value

 
Nonvested balance, January 1, 2024   2,694   $225.40 
Granted   4,010    42.40 
Vested   (1,538)   (201.20)
Forfeited   (56)   (444.00)
Nonvested balance, March 31, 2024   5,110   $86.80 

 

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 March 31, 2025, there was $44,710 of total unrecognized compensation costs related to all remaining non-vested restricted stock grants, which will be amortized over the next thirty-four months in accordance with their respective vesting scale.

 

The nonvested balance of restricted stock vests as follows:

 

Years ended  Number of
shares		 
     
2025 (April 1, 2025 to December 31, 2025)   75 
2026   325 
2027   250 
2028   200 
2029   —