v3.26.1
STOCK BASED AWARDS
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
STOCK BASED AWARDS

NOTE 6. STOCK BASED AWARDS

 

Stock-based compensation expense of $126 and $118 for the three months ended March 31, 2026 and 2025, respectively, was reported in the condensed consolidated statements of operations within general and administrative expenses.

 

Stock Options

 

Under the 2017 Stock Incentive Plan (“2017 Plan”), as amended, there are an aggregate of 775,000 shares authorized for issuance. As of March 31, 2026, there were 35,136 remaining authorized shares available for grant. On March 18, 2026, the Company’s Board of Directors approved the 2026 Equity Incentive Plan (the “2026 Plan”), subject to shareholder approval at the upcoming annual meeting in May 2026. The 2026 Plan would succeed the Company’s 2017 Stock Incentive Plan and authorize 250,000 shares for various equity- and cash-based awards.

 

 

The Company granted 30,000 stock options under the 2017 Plan which vest over 5 years. Weighted average stock option fair value assumptions and the weighted average grant date fair value of stock options granted were as follows:

  

   2026 
Stock option fair value assumptions:     
Risk-free interest rate   3.99%
Expected life (years)   6.2 
Dividend yield   -%
Expected volatility   58%
Weighted average grant date fair value of stock options granted  $7.14 

 

Total compensation expense related to stock options was $77 and $54 for the three months ended March 31, 2026, and 2025 respectively. As of March 31, 2026, there was $1,035 of unrecognized compensation related to stock options which will be recognized over a weighted average period of 2.4 years.

 

Following is a summary of stock option activity as of and for the three months ended March 31, 2026 and 2025:

  

   Shares  

Weighted-

Average

Exercise Price

Per Share

  

Weighted-

Average

Remaining

Contractual

Term

(in years)

  

Aggregate

Intrinsic Value

 
Outstanding – December 31, 2024   453,400   $6.79    5.70   $1,654 
Granted   -    -           
Exercised   (200)   9.37           
Forfeited   (4,400)   8.98           
Outstanding – March 31, 2025   448,800   $6.77    5.45   $1,508 
                     
Outstanding – December 31, 2025   490,182   $6.91    5.14   $828 
Granted   30,000    12.19           
Exercised   -    -           
Forfeited   (4,200)   9.94           
Outstanding – March 31, 2026   515,982   $6.65    4.77   $2,584 
Exercisable on March 31, 2026   331,100   $5.63    9.4   $2,180 

 

Restricted Stock Units

 

Total compensation expense related to restricted stock units (“RSUs”) was $49 and $64 for the three months ended March 31, 2026 and 2025, respectively. No RSUs were granted during the three-month periods ended March 31, 2026 and 2025. As of March 31, 2026, total unrecognized compensation expense related to the 43,664 outstanding RSUs was $207, which will vest over a weighted average period of 1.0 years. On March 18, 2026 these RSU’s were modified to allow full vesting upon a change of control, as defined in the amendment. Management concluded that no incremental compensation cost was required, as the added change-in-control provision did not impact the fair value of the awards at the modification date.