SHARE BASED COMPENSATION

12 Months Ended

Dec. 31, 2024

SHARE BASED COMPENSATION

SHARE-BASED COMPENSATION

NOTE 10 – SHARE-BASED COMPENSATION

For share-based awards granted, we have recognized compensation expense based on the estimated grant date fair value method.  For these awards we have recognized compensation expense using a straight-line amortization method and reduced for estimated forfeitures.  The impact on our results of operations of recording share-based compensation for the years ended December 31, 2024 and 2023 was as follows:

	Year Ended December 31,
	2024		2023
(in thousands)
Cost of goods sold	$	112	$	95
Research and development		228		257
Selling, general and administrative		636		838
Total share-based compensation	$	976	$	1,190

An immaterial amount of share-based compensation was capitalized into inventory as overhead for the years ended December 31, 2024 and 2023, respectively.

The following table summarizes stock option activity under our stock option plans for the twelve months ended December 31, 2024 and 2023:

	2024							2023
	Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life in Years		Options		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life in Years
Outstanding at beginning of year		12,500		$	4.98				12,500	$	4.98
Granted		200,000		$	2.39				-		-
Exercised		-			-				-		-
Cancelled, Expired or Forfeited		(12,500	)	$	4.98				-		-
Outstanding at end of year		200,000		$	2.39		5.67		12,500	$	4.98		1.33
Vested or expected to vest at the end of the period		182,676		$	2.39		1.33		12,500	$	4.98		1.33
Exercisable at end of year		12,500		$	2.39		1.33		12,500	$	4.98		1.33

The aggregate intrinsic value of outstanding options is $81,540.  There were no stock option awards exercised in 2024.

Restricted stock award activity including performance-based stock award activity under our share-based compensation plan was as follows: 

	2024					2023
	Awards			Weighted - Average Grant Date Fair Value		Awards			Weighted - Average Grant Date Fair Value
Outstanding at beginning of year		728,625		$	4.17		665,200		$	3.94
Granted		363,150			2.87		387,100			4.36
Vested		(296,209	)		4.12		(284,925	)		3.93
Cancelled		(323,666	)		3.66		(38,750	)		3.96
Outstanding at end of year		471,900		$	3.55		728,625		$	4.17

During the years ended December 31, 2024 and 2023, 86,007 and 83,753 shares, respectively, were withheld from issuance related to restricted stock units vesting and stock option exercises to cover employee taxes and stock options exercise price.

Non-employee directors Restricted Stock Units (“RSUs”) typically vest over the earlier of one year or the next annual meeting of shareholders and Non-Qualified stock options vest over three years and have a six-year exercise period.  Employee RSUs typically vest annually over three or four years and employee Non-Qualified stock options typically vest quarterly over four years and have a six-year exercise period. Performance Stock Units (“PSUs”) typically cliff vest at the end of the performance period and the performance metric for 2023 awards is cumulative revenue growth over the three-year period ending December 31, 2025 with a cumulative revenue threshold, target, and maximum performance measure.  For 2024 awards, the performance metrics included revenue growth, EBITDA and project objective targets over the three-year period ending December 31, 2026.  The table above includes performance shares granted in 2024 of 124,000 shares at the target performance level (the threshold level would be 50% and the maximum level would be 150% of the target level).

The remaining unamortized expected future compensation expense and remaining amortization period associated with unvested option grants and restricted stock awards are:

	December 31, 2024		December 31, 2023
Unamortized future compensation expense	$	1,413,500	$	2,317,524
Remaining weighted average amortization period in years		2.31		2.44

The weighted average number of shares outstanding used to compute earnings (loss) per share included the following:

	Year Ended December 31,
	2024		2023
Weighted average shares outstanding		9,149,538		8,940,612
Restricted and Performance Stock Units		-		132,360
Stock Options		-		216
Weighted average shares		9,149,538		9,073,188