Note 8 - Stock Plans

6 Months Ended

Jun. 30, 2026

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

8. STOCK PLANS

On January 22, 2026, the Board of Directors of the Company declared a 5% stock dividend payable March 25, 2026 to shareholders of record as of February 27, 2026. All stock options and restricted stock amounts outstanding have been adjusted to give retroactive effect to stock dividends.

The following table presents the activity related to stock options for the three months ended June 30, 2026.

														*Weighted*
						*Weighted*								*Average*
						*Average*				*Aggregate*				*Remaining*
		*Number of*				*Exercise*				*Intrinsic*				*Contractual*
		*Shares*				*Price*				*Value*				*Term (in years)*
Options outstanding at Beginning of Period			369,975			$	8.21
Granted			—				—
Expired			—				—
Cancelled / Forfeited			—				—
Exercised			—				—
Options outstanding at End of Period			369,975			$	8.21			$	3,601,400				3.00
Exercisable (vested) at End of Period			369,975			$	8.21			$	3,601,400				3.00

The following table presents the activity related to stock options for the six months ended June 30, 2026.

														*Weighted*
						*Weighted*								*Average*
						*Average*				*Aggregate*				*Remaining*
		*Number of*				*Exercise*				*Intrinsic*				*Contractual*
		*Shares*				*Price*				*Value*				*Term (in years)*
Options outstanding at Beginning of Period			422,527			$	7.80
Granted			—				—
Expired			—				—
Cancelled / Forfeited			—				—
Exercised			(52,552	)			4.90
Options outstanding at End of Period			369,975			$	8.21			$	3,601,400				3.00
Exercisable (vested) at End of Period			369,975			$	8.21			$	3,601,400				3.00

The intrinsic value of options exercised was $466,000 and $268,000 during the six months ended June 30, 2026 and June 30, 2025, respectively. The fair value of awards vested was $25,000 during each of the six-month periods ended June 30, 2026 and June 30, 2025. The intrinsic value of options exercised was $0 and $90,000 during the three months ended June 30, 2026 and June 30, 2025, respectively. The fair value of awards vested was $0 during each of the three-month periods ended June 30, 2026 and June 30, 2025.

As of June 30, 2026, there was no unrecognized compensation cost related to non-vested stock options.

There was $0 and $6,000 of recognized compensation cost related to stock options granted for the three months ended June 30, 2026 and June 30, 2025, respectively. There was $6,000 and $12,000 of recognized compensation cost related to stock options granted for the six months ended June 30, 2026, and June 30, 2025, respectively.

The following table presents the activity related to non-vested restricted stock for the three months ended June 30, 2026.

														*Weighted*
						*Weighted*								*Average*
						*Average*				*Aggregate*				*Remaining*
		*Number of*				*Grant Date*				*Intrinsic*				*Contractual*
		*Shares*				*Fair Value*				*Value*				*Term (in years)*
Non-vested Restricted stock outstanding at Beginning of Period			286,274			$	9.21
Granted			500				17.55
Cancelled / Forfeited			(800	)			12.29
Exercised/Released/Vested			(1,820	)			7.60
Non-vested restricted stock outstanding at End of Period			284,154			$	9.23			$	5,097,723				3.00

The following table presents the activity related to non-vested restricted stock for the six months ended June 30, 2026.

														*Weighted*
						*Weighted*								*Average*
						*Average*				*Aggregate*				*Remaining*
		*Number of*				*Grant Date*				*Intrinsic*				*Contractual*
		*Shares*				*Fair Value*				*Value*				*Term (in years)*
Non-vested Restricted stock outstanding at Beginning of Period			283,907			$	8.05
Granted			60,579				14.02
Cancelled / Forfeited			(8,736	)			8.63
Exercised/Released/Vested			(51,596	)			8.46
Non-vested restricted stock outstanding at End of Period			284,154			$	9.23			$	5,097,723				3.00

The weighted average fair value of restricted stock granted during the six months ended June 30, 2026 was $14.02 per share.

As of June 30, 2026, there was $1,416,000 of total unrecognized compensation cost related to non-vested restricted stock. This cost is expected to be recognized over a weighted average period of approximately 3.00 years.

There was $140,000 and $150,000 of recognized compensation cost related to restricted stock awards for the three months ended June 30, 2026 and June 30, 2025, respectively. There was $234,000 and $334,000 of recognized compensation cost related to restricted stock awards for the six months ended June 30, 2026 and June 30, 2025, respectively.

The Company has an Employee Stock Purchase Plan (“ESPP”). There are 315,000 shares authorized for issuance under the ESPP. The total number of shares authorized has been adjusted to give retroactive effect to stock dividends and stock splits, including the 5% stock dividend declared on January 22, 2026, payable March 25, 2026 to shareholders of record as of February 27, 2026. The ESPP will expire on March 15, 2036.

The ESPP is implemented by participation periods of not more than twenty-seven months each. The Board of Directors determines the commencement date and duration of each participation period. The Board of Directors approved the current participation period of December 2, 2025 to November 23, 2026. An eligible employee is one who has been continually employed for at least 90 days prior to commencement of a participation period. Under the terms of the ESPP, employees can choose to have up to 10 percent of their compensation withheld to purchase the Company’s common stock each participation period. The purchase price of the stock is 85 percent of the lower of the fair value on the last trading day before the date of participation or the fair value on the last trading day during the participation period.

As of June 30, 2026, there was $31,000 unrecognized compensation cost related to ESPP issuances. This cost is expected to be recognized over a weighted average period of approximately 0.5 years.

There was $16,000 and $10,000 of recognized compensation cost related to ESPP issuances for the three months ended June 30, 2026 and June 30, 2025, respectively. There was $31,000 and $18,000 of recognized compensation cost related to ESPP issuances for the six months ended June 30, 2026 and June 30, 2025, respectively.

The weighted average fair value at issuance date during the six months ended June 30, 2026 was $2.79 per share.

A summary of the weighted average assumptions used in valuing ESPP issuances during the three and six months ended June 30, 2026 is presented below.

		*Three months ended*				*Six months ended*
		*June 30, 2026*				*June 30, 2026*
Risk Free Interest Rate			3.59	%			3.59	%

Expected Dividend Yield			0.00	%			0.00	%

Expected Life in Years			1.00				1.00

Expected Price Volatility			13.67	%			13.67	%