12. SHARE-BASED INCENTIVE PLAN

The Company maintains a restricted stock incentive plan for the purpose of attracting and retaining officers, employees, and non-employee Board members. Share awards generally vest in equal annual installments over a three-to-ten-year period from date of issuance. Non-vested shares have voting rights and are eligible for any dividends paid on shares of common stock. The Company recognized compensation cost for these fixed awards over the service vesting period, which represents the requisite service period, using the straight-line method. Prior to our IPO, the value of non-vested shares was calculated based on the offering price of the shares in the most recent private placement offering of $20.00, adjusted for stock dividends since granted and assumed selling costs, which management believed approximated fair market value as of the date of grant. Upon our IPO, the value of non-vested shares granted is generally calculated based on the closing price of our common stock on the date of the grant.

During our Annual Meeting of Stockholders, held on  June 2, 2026, the Company's 2017 Incentive Award Plan was amended to increase the available shares for issuance from 450,000 to 550,000 and add an evergreen provision to, on April 1^st and October 1^st of each year, automatically increase the maximum number of shares of common stock available under the plan to 15% of the Company's outstanding shares of common stock, if on such date 550,000 (as adjusted for any reverse splits) is less than 15% of the Company's then-outstanding shares of common stock. 

The non-vested restricted shares outstanding as of June 30, 2026, will vest over the next one to three years. As of  June 30, 2026, there were approximately 23,411 shares available to grant under the Company's 2017 Incentive Award Plan. Share-based compensation expense was approximately $0.2 million and $0.2 million for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, future unrecognized stock compensation related to unvested shares totaled approximately $0.5 million.