On September 15, 2025, the stockholders of the Company approved the 2025 Equity Incentive Plan (the Plan) to provide a means to attract, retain, and reward individuals who contribute to that success and to further align their interests with those of the Company's stockholders through the ownership of shares of the Company. Awards that may be granted under the Plan include stock options, restricted stock awards, restricted stock units, and performance awards.

Total compensation cost that has been charged against income for the plan was $68,000 for the year ended December 31, 2025.

The Plan permits the grant of stock options to its employees for up to 555,947 shares of common stock. Any stock option may be either an incentive stock option or a non-qualified stock option. Option awards are generally granted with an exercise price equal to the market price of the Company's common stock at the date of grant; those option awards have vesting periods of 5 years and have 10-year contractual terms.

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company's common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The fair value of options was determined using the following weighted-average assumptions as of grant date.


	2025
Risk-Free Interest Rate	3.7	%
Expected Term (In Years)	6.5
Expected Price Volatility	20	%
Dividend Yield	—

A summary of the activity in the Plan as it relates to stock options for 2025 follows:


				Weighted			Weighted		Aggregate
				Average			Average		Intrinsic
		Shares		Exercise Price			Remaining Term		Value
Outstanding as of December 31, 2024		—		$	—		—		$	—
Granted		138,985			13.94		4.8			4.26
Exercised		—
Forfeited or Expired		—
Outstanding as of December 31, 2025		138,985			13.94					4.26
Fully Vested and Expected to Vest		—
Exercisable, End of Year		—

As of December 31, 2025, there was $562,744 total unrecognized compensation costs related to nonvested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of 5 years.

A Management Retention Plan (MRP) provides for the issuance of shares to directors and officers. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at issue date. The fair value of the stock was determined using the stock price at the grant date. MRP shares fully vest on the 5th anniversary of the grant date. Total shares issuable under the Plan are 222,378 and 55,595 shares were issued in 2025.




		Weighted
		Average
	Nonvested	Grant Date
	Shares	Fair Value
Unvested as of December 31, 2024	—	$	—
Granted	55,595		13.94
Forfeited	—		—
Vested	—		—
Unvested as of December 31, 2025	55,595	$	13.94

As of December 31, 2025, there was $736,000 total unrecognized compensation costs related to nonvested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 5 years.