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DEFERRED COMPENSATION PLAN
12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
DEFERRED COMPENSATION PLAN

NOTE 8. DEFERRED COMPENSATION PLAN

 

During 2021, the Company established a nonqualified deferred compensation plan under Section 409(a) of the Internal Revenue Code for eligible senior staff of the Company, to which the Company makes contributions. Benefits are earned over a 15-year cliff vesting period, which the Company ratable recognizes as expense over the vesting period. During the year ended December 31, 2021, the Company contributed $100,000 to the Plan, which was recorded in other assets in the accompanying consolidated balance sheets for the year ended December 31, 2024, net of accumulated vested earnings of $13,333. Assets designated for this plan consist of mutual funds and exchange traded funds. The plan was cancelled in March 2024.

 

 

During 2021, the Company purchased company owned life insurance contracts on certain employees that are key members of the management team and are important to the success of the Company. These policies had a death benefit of $4,590,214 with the Company as the sole beneficiary and a cash value of life insurance of $12,390 as of December 31, 2023. The cash value of the company owned life insurance policy is shown in other assets in the accompanying consolidated balance sheets, and the gain (loss) on cash value is shown in other income in the accompanying consolidated income statements. The plan was cancelled in March 2024.