Note 11 – Stock-Based Compensation Empire recognizes stock-based compensation expense associated with granted stock options and restricted stock units (“RSUs”). Empire accounts for forfeitures of equity-based incentive awards as they occur. Stock-based compensation expense related to time-based restricted stock units is based on the price of the common stock on the grant date and recognized as vesting occurs. For options, the fair value is determined using the Black-Scholes option valuation assumptions on dividend yield, expected annual volatility, risk-free interest rate and an expected useful life. Stock-based compensation is recorded with a corresponding increase in additional paid-in capital within the unaudited interim condensed consolidated balance sheets. The following summary reflects nonvested restricted stock unit activity and related information: | | | | | | | | Weighted-Average | | RSUs | | Fair Value (1) | Outstanding, December 31, 2025 | 88,799 | | $ | 6.13 | Granted | 171,735 | | | 2.68 | Vested | (17,263) | | | 8.61 | Forfeited | (4,366) | | | 4.19 | Outstanding, June 30, 2026 | 238,905 | | $ | 3.50 |
| (1) | Shares are valued at the grant-date market price. |
The following summary reflects stock option activity and related information: | | | | | | | | Weighted-Average | | Options (2) | | Exercise Price (3) | Outstanding, December 31, 2025 | 1,261,500 | | $ | 6.17 | Granted | 37,000 | | | 3.10 | Exercised | — | | | — | Cancelled | (210,332) | | | 9.84 | Outstanding, June 30, 2026 (1) | 1,088,168 | | $ | 5.36 | Exercisable, June 30, 2026 (1) | 873,333 | | $ | 5.31 |
| (1) | Stock options outstanding and exercisable had an aggregate intrinsic value of ($2.9) million and ($2.3) million, respectively. |
| (2) | Stock options outstanding at June 30, 2026, had a weighted-average remaining contract term of 3.32 years. |
| (3) | Stock options outstanding at June 30, 2026, had an exercise price range of $1.32 to $12.36. |
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