The Company has options outstanding under two stock option plans, the 2016 Stock Option Plan and the 2022 Stock Option Plan. Options granted under both plans are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted and expire 10 years after the date of grant.

On December 2, 2024, options to purchase 10,000 shares of common stock at an exercise price of $9.99 per share were granted to an employee of the Company under the 2022 Stock Option Plan. Such options are exercisable as to 25% of the shares commencing on the first anniversary of the date of grant and as to an additional 25% on each yearly anniversary thereafter. The grant date fair value of these stock options was $2.94 per share and totaled approximately $29,000.

The fair value of stock options is estimated on the date of grant using a Black-Scholes option-pricing model that uses assumptions that relate to the expected volatility of the Company’s common stock, the expected dividend yield of the Company’s stock, the expected life of the options and the risk-free interest rate. The assumptions used for the above include a risk-free interest rate of 4.1%, volatility of 34.1%, a dividend yield of 3.7% and an expected life of 10 years.

During the 39-week period ended June 27, 2026, no options to purchase shares of common stock were issued by the Company.

The Company also maintains a Section 162(m) Cash Bonus Plan. Under the Company's Section 162(m) Cash Bonus Plan, compensation paid in excess of $1,000,000 to any employee who is the chief executive officer or one of the three highest paid executive officers on the last day of that tax year (other than the chief executive officer or the chief financial officer) is not tax deductible.


	2026
	Shares	Weighted Average Exercise Price	Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding, beginning of period	387,250	$17.66	5.5 years
Options:
Granted	—
Exercised	—
Canceled or expired	(17,750)	$16.96
Outstanding and expected to vest, end of period	369,500	$17.69	4.8 years	$	—
Exercisable, end of period	316,375	$18.24	4.3 years	$	—
Shares available for future grant	360,000

Compensation cost charged to operations for the 13 weeks ended June 27, 2026 and June 28, 2025 for stock-based compensation programs was approximately $35,000 and $32,000, respectively, and total stock-based compensation activity for the 13 weeks ended June 27, 2026 and June 28, 2025 was ($16,000) and ($21,000), respectively, which includes reversal of stock-based compensation expense relating to forfeitures in the amounts of $51,000 and $53,000 for the 13 weeks ended June 27, 2026 and June 28, 2025, respectively.

Compensation cost charged to operations for the 39 weeks ended June 27, 2026 and June 28, 2025 for stock-based compensation programs was approximately $99,000 and $114,000, respectively, and total stock-based compensation activity for the 39 weeks ended June 27, 2026 and June 28, 2025 was $48,000 and $60,000, respectively, which includes reversal of stock-based compensation expense relating to forfeitures in the amounts of $51,000 and $54,000 for the 39 weeks ended June 27, 2026 and June 28, 2025, respectively.

Compensation cost recognized is classified as a general and administrative expense in the consolidated statements of operations.

As of June 27, 2026, there was approximately $160,000 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a period of 1.6 years.