Stock Compensation

12 Months Ended

Dec. 31, 2024

Stock Compensation

Stock Compensation

Note 14 - Stock Compensation

The Company maintains the 2024 Non-Employee Director Stock Incentive Plan (the “Plan”), which authorizes grants of non-statutory stock options to non-employee directors. Options are granted at an exercise price equal to the fair market value of the Company’s common stock on the grant date, vest immediately, and expire five years from the date of grant unless earlier terminated in accordance with the Plan.

On December 31, 2024, the Company granted stock options to three non-employee directors to purchase an aggregate of 15,000 shares of common stock at an exercise price of $1.46 per share. The options vested immediately on the grant date and expire on December 31, 2029.

The fair value of each option award was estimated on the grant date using the Black-Scholes option-pricing model, which requires management to make assumptions regarding certain variables that materially affect the fair-value estimate. Because the awards were fully vested on the grant date, the total fair value was recognized as stock-based compensation expense within general and administrative expenses during 2024. The Company used the following assumptions, which are representative of the five-year contractual term of the options. Expected volatility was estimated based on the historical volatility of a group of comparable publicly traded companies, as the Company does not have sufficient trading history of its own. The expected term was estimated at 5 years. The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the grant date for securities with maturities corresponding to the expected term of the options. The expected dividend yield was assumed to be 0%, as the Company has not historically paid dividends and does not expect to do so in the foreseeable future.

Black-Scholes Assumptions are as follows:

Assumptions
Stock Price on Grant Date	$	1.46
Exercise Price	$	1.46
Volatility		63.49	%
Expected Term		5	years
Risk-free interest rate		4.38	%
Expected Dividend Yield		0.00	%

A summary of option activity under the Plan is presented below:

		Weighted-Average		Weighted-Average
		Exercise		Remaining
Activity	Options	Price		Term
Outstanding – beginning of period	—
Granted	15,000	$	1.46	5
Exercised/Forfeited	—		—	—
Outstanding – end of period	15,000	$	1.46	4.9
Exercisable – end of period	15,000	$	1.46	4.9

The weighted-average grant-date fair value of options granted during the year was $0.84 per share. Total stock-based compensation expense recognized for the year ended December 31, 2024, was $12,570. No unrecognized compensation cost remained as of December 31, 2024.