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SHAREHOLDERS’ EQUITY
 3 Months Ended
Mar. 31, 2026
Equity [Abstract]  
SHAREHOLDERS’ EQUITY

NOTE 10 – SHAREHOLDERS’ EQUITY

 

Common Stock

 

At the Company’s Annual Meeting of Shareholders held in July 2020, the Company approved the Restated 2014 Omnibus Long Term Incentive Plan (the “2014 LTIP”) in which the Company’s directors, officers, employees and consultants are eligible to participate. The 2014 LTIP terminated as to future awards on September 3, 2024. Previously granted awards under the 2014 LTIP will remain outstanding until they expire by their terms or under the terms of the 2014 LTIP.

 

On June 12, 2024, the Company’s shareholders approved the 2024 Omnibus Long-Term Incentive Plan (the “2024 LTIP”), which went into effect upon shareholder approval. The maximum number of shares of the Company’s common stock that may be delivered pursuant to awards granted under the 2024 LTIP is 1,000,000, subject to increase by any awards under the 2014 LTIP (i) that were outstanding on or after June 12, 2024, and that, on or after such date, are forfeited, expire or are canceled, and (ii) any shares subject to awards relating to common stock under the 2014 LTIP that are settled in cash on or after June 12, 2024 (the “Prior LTIP Awards”). The 2024 LTIP also provides that, to the extent an award under the 2024 LTIP or a Prior LTIP Award is forfeited, expires or is canceled, in whole or in part, the shares subject to such forfeited, expired or canceled award may again be awarded under the 2024 LTIP. For the three months ended March 31, 2026, a total of 215 shares were forfeited under the 2014 LTIP, a total of 241,612 shares, net of forfeitures of 2,997, had been issued under the 2024 LTIP and 565,903 were available for issuance under the 2024 LTIP.

 

Restricted Stock Awards

 

During the three months ended March 31, 2026, the Company issued restricted stock awards under the 2024 LTIP which are subject to certain vesting provisions and other terms and conditions set forth in each recipient’s respective restricted stock agreement. The Company issued 241,612 shares, net of forfeitures of 2,997, under the 2024 LTIP, of restricted common stock to employees, directors and certain advisors of the Company during the three months ended March 31, 2026. The fair value of these awards was $4,423,702 based on the closing price of the Company’s common stock on the respective grant dates, which will be recognized as compensation expense on a straight-line basis over the vesting period of the awards.

 

 

Share-based compensation expense of $1,028,335 and $1,175,496 was recognized in operating expenses in the accompanying Consolidated Statements of Operations during the three months ended March 31, 2026 and 2025, respectively. Share-based compensation expense related to THP of zero and $129,408 was recognized in discontinued operations in the accompanying Consolidated Statements of Operations during the three months ended March 31, 2026 and 2025, respectively.

 

At March 31, 2026, there was $9,088,245 of total unrecognized share-based compensation expense related to unvested share-based equity awards. Unrecognized share-based compensation expense is expected to be recognized over a weighted-average period of 2.3 years.

 

A summary of restricted stock activity is presented below:

 

   Three Months Ended March 31, 
   Shares  

Weighted Average

Grant Date Fair Value

 
Nonvested at beginning of period   257,989   $34.99 
Granted   241,612    18.66 
Vested   (72,823)   36.61 
Forfeited   (3,212)   26.31 
Nonvested at March 31, 2026   423,566   $25.46 

 

Stock Options

 

A summary of the status of outstanding stock options and changes is presented below:

 

  

Three Months Ended March 31,

     
   Options  

Weighted Average

Exercise

Price

  

Weighted Average

Remaining

Contract Life

  

Aggregate

Intrinsic

Value

 
Outstanding at beginning of period   10,218   $10.13           
Granted or assumed   -    -           
Exercised   -    -           
Forfeited   -    -           
Expired   -    -           
Outstanding at March 31, 2026   10,218   $10.13    4.7   $71,995 
                     
Exercisable at March 31, 2026   10,218   $10.13    4.7   $71,995