v3.26.1
StockBased Compensation
3 Months Ended
Mar. 31, 2026
StockBased Compensation  
Stock-Based Compensation

Note 7 – Stock-Based Compensation

 

We maintain a stock-based compensation program intended to attract, retain and provide incentives for talented employees and directors and align stockholder and employee interests. During the 2026 and 2025 periods, we granted restricted stock units (“RSUs”) from the 2017 Equity Compensation Plan, as amended (“2017 ECP”) and the 2025 Omnibus Incentive Compensation Plan (“2025 Plan”). RSU vesting periods are generally up to three years and/or achieving certain financial targets.

 

On March 21, 2025, the Board of Directors adopted the 2025 Plan, approved by stockholders at the annual meeting held on May 22, 2025. The 2025 Plan replaced the 2017 ECP for purposes of new awards. All awards granted under the 2017 ECP prior to approval of the 2025 Plan remain outstanding and continue in full force and effect under the terms of the 2017 ECP; however, no new awards may be granted under the 2017 ECP following the effective date of the 2025 Plan.

 

As of March 31, 2026, shares subject to outstanding awards under the 2017 ECP and 2025 Plan were 515,147 and 238,000 shares, respectively. Shares available for future grant under the 2025 Plan at March 31, 2026, were 881,885.

 

As of March 31, 2026, the total share reserve authorized under the 2025 Plan was 1,119,885.

 

Compensation Expense

 

For the three months ended March 31, 2026 and March 31, 2025, we recorded stock-based compensation expense for all equity incentive plans of $302,719 and $304,284, respectively. Total compensation cost not yet recognized at March 31, 2026 was $1,416,123, which will be recognized over a weighted-average recognition period of approximately 1.2 years.

 

The following table summarizes the stock grants outstanding under 2017 ECP and 2025 Plan as of March 31, 2026:

 

 

 

Options Outstanding

 

 

RSUs Outstanding

 

 

Options and RSUs Exercised/Vested

 

 

Available Shares

 

 

Total Awards (Outstanding + Available)

 

Total

 

 

 

 

 

753,147

 

 

 

 

 

 

881,885

 

 

 

1,635,032

 

 

The fair value of restricted stock units is determined using market value of the common stock on the date of the grant. The fair value of stock options is determined using the Black-Scholes-Merton valuation model. The use of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense and include the expected life of the option, stock price volatility, risk-free interest rate, dividend yield, and exercise price. The company accounts for forfeitures as they occur.

 

There were no options granted in the period ended March 31, 2026.

 

The following table summarizes our restricted stock unit activity for the three months ended March 31, 2026:

 

 

 

RSUs

 

 

 

Number of Shares

 

 

Weighted Average Grant Date Fair Value

 

Outstanding, beginning of period

 

 

779,979

 

 

$3.32

 

Granted

 

 

84,000

 

 

$2.14

 

Vested

 

 

(110,832)

 

$4.20

 

Outstanding, end of period

 

 

753,147

 

 

$3.06