v3.26.1
CAPITAL STOCK, STOCK PLANS, WARRANTS AND STOCK BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
SCHEDULE OF STOCK OPTIONS VALUATION ASSUMPTIONS

 

   2025   2024 
   Employee Stock Options Granted 
   2025   2024 
Weighted-average fair value per share  $5.98    4.90 
Risk -free interest rate (1)   4.45%   4.04%-4.11% 
Expected volatility of stock (2)   58.64%   59.07%-59.10%
Dividend yield (3)   None    None 
Expected option life (years) (4)   5.3    5.2 - 5.5 

 

   2025   2024 
   Outside Director Stock Options Granted 
   2025   2024 
Weighted-average fair value per share  $8.61   $6.87 
Risk -free interest rate (1)   4.43%   4.20%
Expected volatility of stock (2)   57.52%   56.00%
Dividend yield (3)   None    None 
Expected option life (years) (4)   9.6    9.5 

 

(1)The risk-free interest rate is based on the U.S. Treasury yield in effect at the grant date over the expected term of the option.

 

(2)The expected volatility is based on historical volatility from the Company’s traded Common Stock over the expected term of the option.

 

(3)The Company has never paid any dividends on its Common Stock. Our Loan Agreement prohibits the Company from paying any cash dividends without prior approval from our lender.

 

(4)The expected option life is based on historical exercises and post-vesting data.
SCHEDULE OF SHARE-BASED COMPENSATION, ALLOCATION OF RECOGNIZED PERIOD COSTS

The following table summarizes stock-based compensation recognized (within SG&A expenses) for fiscal years 2025 and 2024.

 

   2025   2024 
   Year Ended 
   2025   2024 
Employee Stock Options  $419,000   $358,000 
Director Stock Options   399,000    298,000 
Total  $818,000   $656,000 
SCHEDULE OF STOCK OPTIONS ROLL FORWARD

The summary of the Company’s total plans as of December 31, 2025, and 2024, and changes during the period then ended are presented as follows:

 

   Shares   Weighted Average Exercise Price   Weighted Average Remaining Contractual Term (years)   Aggregate Intrinsic Value (5) 
Options outstanding January 1, 2025   1,000,900   $6.18           
Granted   120,000   $11.59           
Exercised   (121,900)  $4.24        $885,880 
Forfeited   (17,000)  $8.72           
Options outstanding end of period (1)   982,000   $7.04    4.6   $5,444,728 
Options exercisable at December 31, 2025(2)   474,000   $6.69    4.2   $2,963,467 

 

   Shares   Weighted Average Exercise Price   Weighted Average Remaining Contractual Term (years)   Aggregate Intrinsic Value (5) 
Options outstanding January 1, 2024   994,500   $5.57         -  
Granted   150,500   $9.43           
Exercised   (97,700)  $5.16        $662,524 
Forfeited   (46,400)  $5.93           
Options outstanding end of period (3)   1,000,900   $6.18    4.7   $4,894,634 
Options exercisable at December 31, 2024(4)   401,000   $5.62    3.9   $2,183,072 

 

(1) Options with exercise prices ranging from $3.31 to $12.23.
(2) Options with exercise prices ranging from $3.31 to $10.20.
(3) Options with exercise prices ranging from $3.15 to $10.20.
(4) Options with exercise prices ranging from $3.15 to $9.81.
(5) The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price.

SCHEDULE OF NON VESTED OPTIONS

The summary of the Company’s nonvested options as of December 31, 2025, and changes during the period then ended are presented as follows:

 

       Weighted Average 
       Grant-Date 
   Shares   Fair Value 
Non-vested options January 1, 2025   599,900   $3.79 
Granted   120,000   $7.51 
Vested   (194,900)  $3.77 
Forfeited   (17,000)  $4.45 
Non-vested options at December 31, 2025   508,000   $4.66