Cash Dividend

For the six months ending  June 30, 2025 and 2024 the company has paid cash dividends totaling $185,579 and $46,437, respectively.  The 2025 dividends were declared on  February 28 and  May 5, 2025 with payment dates of  March 28 and  June 13, 2025, respectively.  The 2024 dividend was declared on  March 14,2024 with a payment date of  April 19, 2024.  

Stock Compensation

On  May 14, 2021, the Company's Board of Directors approved the 2021 Stock Incentive Plan (the "Plan").  The Plan provides for the issuance of incentive and other equity-based awards to its employees. Options issued under the Plan are exercisable for periods not to exceed ten years, and vest and contain such other terms and conditions as specified in the applicable award document. Options to buy common stock are issued under the Plan, with exercise prices equal to the closing price of shares of the Company’s common stock on the OTCQX Exchange at closing on the trading day of the date of award. The Company had 500,000 shares initially available for grant.

On  May 14, 2021, the Company's Board of Directors awarded 70,000 stock options as follows: 20,000 to Chad Hoehne; 20,000 to former COO Robert Siqveland and 30,000 to Randy Gilbert. These shares are subject to a vesting schedule as follows: 25% immediately and 25% in each subsequent year. Grant date fair value of $128,726 will be recognized over the vesting period as stock compensation expense as a component of selling, general and administration expense.

On  March 25, 2022, the Company's Board of Directors awarded Randy Gilbert 87,500 Restricted Stock shares and former COO Robert Siqveland 12,500 Restricted Stock shares. These shares are subject to a five-year vesting schedule as follows: 20,000 shares vest annually beginning on  March 25, 2023.  Grant date fair value of $349,000 will be recognized ratably over the vesting period as stock compensation expense as a component of selling, general and administration expense.

On  December 15, 2022, former COO Robert Siqveland agreed to and accepted a separation agreement from the Company. Included in this agreement were terms which immediately vested the remaining unvested 12,500 Restricted Stock shares from the  March 25, 2022 grant and the unvested stock options to purchase 20,000 shares that were awarded to him on  May 14, 2021.  In addition, this agreement modified the exercise period of the stock options which expired on  March 31, 2024.  This was determined to be a modification under ASC 718 and the incremental compensation costs of $39,000 and $37,000, respectively, for the restricted stock and options were recognized immediately in 2022 as a component of selling, general and administrative expenses.  Lastly, Mr. Siqveland received twelve months of severance in two payments.  $100,500 on  April 15, 2023 and $33,500 on  January 15, 2024.  

On  December 17, 2021, the Company awarded 15,000 stock options to be distributed to most of its current employees.  These options vested immediately. Grant date fair value of $22,919 was recognized during 2021 as stock compensation expense as a component of selling, general and administration expense.

On  December 16, 2022, the Company awarded 16,500 stock options to be distributed to most of its current employees.  These options vested immediately. Grant date fair value of $37,969 was recognized during 2022 as stock compensation expense as a component of selling, general and administration expense.

On March 12, 2023, the Company awarded 10,000 Restricted Stock shares to an employee out of treasury stock. These shares are subject to a three year vesting period.  Grant date fair value of $50,500 was recognized over the vesting period as stock compensation expense as a component of selling, general and administrative expense. 

On  December 19, 2023, the Company awarded 19,500 stock options to be distributed to most of its current employees.  These options vested immediately. Grant date fair value of $38,331 was recognized during 2023 as stock compensation expense as a component of selling, general and administration expense.

On September 30, 2024 the Company awarded 703 Restricted Stock shares to a non-employee out of treasury stock. These shares are not subject to a vesting period.  Grant date fair value of $2,700 was recognized as legal expense as a component of selling, general and administrative expense.

On March 5, 2025 Chad Hoehne and Randy Gilbert elected to be paid in the form of 2,100 and 1,855 shares of the Company’s treasury stock as part of their 2024 Executive bonus plan, respectively.  Per this plan, each officer may obtain shares in an amount not to exceed 25% of their declared bonus. Additionally, these shares were valued at 90% of the weighted average trade value from the fourth quarter of 2024.

The Company has 39,500 shares of restricted stock outstanding as of June 30, 2025. There were 60,500 shares of restricted stock outstanding at June 30, 2024.

For the three months and six months ending June 30, 2025 and 2024, the Company recorded compensation expense related to restricted stock granted of $19,477 and $38,954, respectively, as a component of selling, general and administrative expenses.  

The unvested stock compensation expense is expected to be recognized over a weighted average period of approximately two years. As of  June 30, 2025 and 2024, the remaining unrecognized stock compensation expense for stock options and restricted stock was approximately $115,298 and $294,000, respectively.

The following table summarizes additional information about stock options outstanding and exercisable at June 30, 2025:

The following table summarizes the activity of all stock options outstanding for the six months ended June 30, 2025 and 2024.