v3.26.1
Equity
12 Months Ended
Dec. 31, 2025
Equity  
Equity

11. Equity

 

The Company has authorized 200,000,000 shares of no-par common stock at December 31, 2025 and 2024. In addition, the Company has authorized 1,000,000 shares of no-par preferred stock, none of which had been issued at December 31, 2025 or 2024.

 

Stock Purchase Warrants Outstanding

Transactions in common stock purchase warrants for the years ended December 31, 2025 and 2024 are as follows:

 

 

 

Number of Warrants

 

 

Exercise Prices

 

Balance December 31, 2023

 

 

289,294

 

 

$5.60-7.00

 

Exercised

 

 

(289,294)

 

$5.60-7.00

 

Balance December 31, 2024 and 2025

 

 

-

 

 

$-

 

 

Stock Options

In May 2023, the 2023 Equity Incentive Compensation Plan was voted on, and approved, by the shareholders of the Company. This plan allows for the issuance of up to 1,225,600 shares of the Company’s common stock in the form of stock options (which may be incentive stock options or nonqualified stock options) or other stock-based awards, such as stock appreciation rights, restricted stock, restricted stock units and performance shares.

 

On January 15, 2025, the Company granted 400,000 stock options to employees with an exercise price of $11.50. These options expire on January 17, 2028, and vest equally on June 30, 2025, December 31, 2025, June 30, 2026 and December 31, 2026. The stock-based compensation expense for these options in the current year was $1,505,244. The fair value of stock option awards granted, and the key assumptions used in the Black-Scholes valuation model to calculate the fair value of the options was as follow:

 

Fair value

 

$1,901,360

 

Options issued

 

 

400,000

 

Exercise price

 

$11.50

 

Expected term (in years)

 

 

3.0

 

Risk-free rate

 

 

4.34%

Volatility

 

 

64.2%

 

Transactions in stock options for the years ended December 31, 2025 and 2024 are as follows:

 

 

 

Number of Options

 

 

Weighted

Average

Exercise Prices

 

Balance December 31, 2023

 

 

477,449

 

 

$5.47

 

Exercised

 

 

(376,590)

 

$5.53

 

Forfeited

 

 

(23,859)

 

$5.51

 

Balance December 31, 2024

 

 

77,000

 

 

$5.17

 

Granted

 

 

400,000

 

 

$11.50

 

Exercised

 

 

(144,625)

 

$8.26

 

Expired

 

 

(3,000)

 

$5.25

 

Balance December 31, 2025

 

 

329,375

 

 

$11.50

 

 

At December 31, 2025, the outstanding stock options have an intrinsic value of approximately $9,486,000 ($387,880 in 2024) and have a weighted average remaining term of 2.04 years (0.69 in 2024). The intrinsic value of stock options exercised for cash in the year ended December 31, 2025 was $620,580 ($263,516 in 2024). Cashless options exercised in the year ended December 31, 2025 had an intrinsic value of $1,454,148 ($1,958,047 in 2024). Future stock-based compensation expense will be $138,641 for each of the first and second quarters of 2026, and $59,418 for each of the third and fourth quarters of 2026.