v3.26.1
Capital Stock, Stock Plans, Warrants and Stock Based Compensation
 6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Capital Stock, Stock Plans, Warrants and Stock Based Compensation

6. Capital Stock, Stock Plans, Warrants and Stock Based Compensation

 

The Company has certain stock option plans under which it may award ISO and/or NQSOs to employees, officers, outside directors, and outside consultants. No option was granted during the first six months of 2026.

 

 

The following table summarizes stock-based compensation recognized for the three and six months ended June 30, 2026, and 2025 for our employee and director stock options (in thousands).

 

   2026   2025   2026   2025 
   Three Months Ended   Six Months Ended 
Stock Options  June 30,   June 30, 
   2026   2025   2026   2025 
Employee Stock Options  $71   $96   $177   $203 
Director Stock Options   111    90    221    179 
Total  $182   $186   $398   $382 

 

As of June 30, 2026, the Company had approximately $1,375,000 of total unrecognized compensation costs related to unvested options for employees and directors. The weighted average period over which the unrecognized compensation costs are expected to be recognized is approximately 2.5 years.

 

The summary of the Company’s total stock option plans as of June 30, 2026, and June 30, 2025, and changes during the periods then ended, are presented below. The Company’s stock option plans consist of the 2017 Stock Option Plan and the 2003 Outside Directors Stock Plan:

 

   Shares   Weighted
Average
Exercise Price		   Weighted
Average
Remaining
Contractual
Term (years)		   Aggregate
Intrinsic
Value (4)		 
Options outstanding January 1, 2026   982,000   $7.04           
Granted   —   $—           
Exercised   (52,400)  $6.26        $347,871 
Forfeited   (35,400)  $7.12           
Options outstanding end of period (1)   894,200   $7.09    4.2   $6,439,756 
Options exercisable at June 30, 2026(2)   497,600   $6.53    3.7   $4,032,931 

 

   Shares   Weighted
Average
Exercise Price		   Weighted
Average
Remaining
Contractual
Term (years)		   Aggregate
Intrinsic
Value (4)		 
Options outstanding January 1, 2025   1,000,900   $6.18           
Granted   50,000   $10.70           
Exercised   (69,500)  $3.91        $459,305 
Forfeited   (17,000)  $8.72           
Options outstanding end of period (2)   964,400   $6.54    4.6   $3,846,034 
Options exercisable at June 30, 2025(3)   398,500   $5.73    3.9   $1,908,857 

 

(1)Options with exercise price ranging from $3.31 to $12.23.
(2)Options with exercise price ranging from $3.31 to $10.70.
(3)Options with exercise price ranging from $3.31 to $9.81.
(4)The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option.

 

During the six months ended June 30, 2026, the Company issued a total of 20,556 shares of its Common Stock under the 2003 Outside Directors Stock Plan to its outside directors as compensation for serving on the Board. The Company recorded approximately $238,000 in compensation expenses (included in SG&A) in connection with the issuance of shares of its Common Stock to outside directors.

 

 

During the six months ended June 30, 2026, the Company issued an aggregate 15,844 shares of its Common Stock from cashless exercises of options for the purchase of 28,000 shares of the Company’s Common Stock ranging from $3.95 per share to $7.75 per share. Additionally, the Company issued an aggregate 24,400 shares of its Common Stock from cash exercises of options for the purchase of 24,400 shares of the Company’s Common Stock ranging from $3.95 per share to $7.75 per share, resulting in proceeds of approximately $153,000.

 

In connection with the Company’s sales of its Common Stock in May 2024 and December 2024, the Company issued warrants to certain underwriters, placement agents, and their designees to purchase an aggregate of 188,038 shares of the Company’s Common Stock. The warrants consisted of (i) warrants to purchase 61,538 shares of Common Stock at an exercise price of $12.19 per share issued in connection with the May 2024 offering and (ii) warrants to purchase 126,500 shares of Common Stock at an exercise price of $11.50 per share issued in connection with the December 2024 offering. These warrants remained outstanding as of June 30, 2026.