v3.26.1
Note 14 - Stock-based Compensation
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

Note 14 StockBased Compensation

 

NHC recognizes stock–based compensation expense for all stock options granted over the requisite service period using the fair value at the date of grant using the Black–Scholes pricing model. Stock–based compensation totaled $1,986,000 and $1,233,000 for the three months ended June 30, 2026 and 2025, respectively. Stock-based compensation totaled $3,266,000 and $2,260,000 for the six months ended June 30, 2026 and 2025, respectively. Stock–based compensation is included in “Salaries, wages and benefits” in the interim condensed consolidated statements of operations.

 

At June 30, 2026, the Company had $13,849,000 of unrecognized compensation cost related to unvested stock–based compensation awards. This unrecognized compensation cost will be amortized over an approximate two-year period.

 

Stock Options

 

The following table summarizes the significant assumptions used to value the options granted for the six months ended June 30, 2026 and for the year ended December 31, 2025.

 

  

June 30,

2026

  

December 31,
2025

 

Risk–free interest rate

  3.5%  4.1%

Expected volatility

  29.0%  27.0%

Expected life, in years

  2.9   2.9 

Expected dividend yield

  1.7%  2.8%

 

The following table summarizes our outstanding stock options for the six months ended June 30, 2026 and for the year ended December 31, 2025.

 

  

Number of

Shares

  

Weighted

Average

Exercise Price

  

Aggregate

Intrinsic

Value

 

Options outstanding at January 1, 2025

  631,242  $74.73  $ 

Options granted

  306,148   91.42    

Options exercised

  (202,281)  70.17    

Options cancelled

  (87,134)  85.94    

Options outstanding at December 31, 2025

  647,975   82.53    

Options granted

  316,804   159.28    

Options exercised

  (247,157)  78.20    

Options outstanding at June 30, 2026

  717,622  $117.91  $67,063,000 
             

Options exercisable at June 30, 2026

  191,793  $78.19  $25,540,000 

 

Options

Outstanding

June 30, 2026

  

Exercise Prices

  

Weighted Average

Exercise Price

  

Weighted Average

Remaining

Contractual

Life in Years

 
400,818  $53.94-$96.03  $85.21   2.9 
316,804  $130.41-$171.42   159.28   4.6 
717,622       $117.91   3.7