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EMPLOYEE STOCK PLANS
6 Months Ended
Jun. 30, 2026
Retirement Benefits [Abstract]  
EMPLOYEE STOCK PLANS

NOTE 16 — EMPLOYEE STOCK PLANS

 

Equity Incentive Plans

 

On May 22, 2024, the Company’s Board approved the 2024 Equity Incentive Plan (“2024 Plan”) and Restricted Stock Units (“RSUs”) Agreements. The 2024 Plan and RSUs Agreement authorized the award of stock options, RSUs to employees and directors.

 

The Company recorded no RSU compensation expense for the three or six months ended June 30, 2026. RSU compensation expense was $111,439 and $307,379 for the three and six months ended June 30, 2025, respectively.

 

The following table summarizes the Company’s RSU activity:

 

  

Number of

RSUs

  

Weighted
Average

Grant Date Fair
Value

   Weighted
Average
Remaining
Life in Years
 
Unvested at December 31, 2025  -   $-   - 
Vested   -    -    - 
Unvested at June 30, 2026   -   $-    - 

 

Options

 

On May 22, 2024, the Company signed a stock option agreement with Mr. David Shan, the Company’s Executive Chairman of the Board of Directors and former Chief Executive Officer, and two other executives of the Company, in connection with the 2024 Plan.

 

On May 22, 2024, the Company granted Mr. David Shan options to purchase 46,860 common shares under an incentive stock option plan at an exercise price of $4.268 per share. The awards vested in two equal annual installments beginning May 22, 2024 and expire on May 21, 2029.

 

On May 22, 2024, the Company also granted Mr. Shan options to purchase 103,140 common shares under a nonqualified stock option plan at an exercise price of $4.00 per share. The awards vested in two equal annual installments beginning May 22, 2024 and expire on May 21, 2034.

 

 

MASSIMO GROUP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

NOTE 16 — EMPLOYEE STOCK PLANS (continued)

 

Options (continued)

 

On May 22, 2024, the Company granted two executives options to purchase an aggregate of 200,000 common shares at $4.00 per share. The awards vested in two equal annual installments beginning May 22, 2024 and expire on May 21, 2034. During the second quarter of 2026, 100,000 unexercised options held by the former CFO lapsed following termination.

 

As of June 30, 2026, the intrinsic value of outstanding stock options was nil.

 

The Company recorded reversals of option compensation expense of $53,205 and $82,600 for the three and six months ended June 30, 2026, respectively. Option compensation expense was $66,808 and $157,288 for the three and six months ended June 30, 2025, respectively.

 

The following table summarizes the Company’s share option activity:

 

  

Number of

Options

  

Weighted Average

Exercise Price

  

Weighted Average Remaining

Life in Years

 
Outstanding at December 31, 2025   350,000   $4.04    8.72 
Exercisable at December 31, 2025   -    -    8.72 
Granted   -    -    - 
Cancelled / lapsed   (100,000)   4.00    - 
Vested   125,000    4.06    - 
Unvested at June 30, 2026   -   $-    - 
Exercisable at June 30, 2026   250,000   $4.05    7.97 

 

As of June 30, 2026, unrecognized compensation cost related to outstanding RSUs and stock options was nil.