The Company’s 2021 Long-Term Incentive Plan (the “2021 Plan”) was adopted by the Board of Directors on March 4, 2021, amended by the Board of Directors on April 20, 2021, and approved by shareholders in the annual shareholder meeting on April 29, 2021. The 2021 Plan authorizes the Compensation and Management Development Committee of the Board of Directors (“Compensation Committee”) to issue up to 2,000,000 additional various stock awards including stock options, performance stock units, restricted stock units and other forms of equity-based awards to key employees and directors. No new awards may be issued under the 2021 Plan after March 16, 2024.

The Company’s 2024 Long-Term Incentive Plan (the “2024 Plan”) was adopted by the Board of Directors on February 29, 2024, and approved by shareholders in the annual shareholder meeting on April 25, 2024. The 2024 Plan authorizes the Compensation Committee to issue up to 2,500,000 additional various stock awards including stock options, performance stock units, restricted stock units and other forms of equity-based awards to key employees and directors.

Stock compensation expense was approximately $3.5 million, $1.7 million and $6.7 million for the years ended December 31, 2025, 2024 and 2023, respectively, and is included in Selling, general and administrative expenses. Changes in expected performance under performance share award arrangements can cause volatility in stock compensation expense. Total unrecognized compensation cost related to non-vested share-based compensation arrangements at December 31, 2025 was approximately $5.3 million, which will be recognized over the next three years, as such compensation is earned. Outstanding options expire, if unexercised, ten years from the date of grant.

Options granted in 2025 are shown in the table below. There were no options granted in 2024 and 2023.


Year	Options		Exercise Price
2025		125,000	$	10.75

Options exercised in 2024 and 2023 are shown in the table below. There were no options exercised in 2025.


Year	Options Exercised		Exercised Price
2024		102,468	$18.58 to $21.30
2023		62,551	$11.62 to $18.69

In addition, options totaling 3,317, 20 and 43,729 expired or were forfeited during the years ended December 31, 2025, 2024 and 2023, respectively.

Options outstanding and exercisable at December 31, 2025, 2024 and 2023 were as follows:


Year	Outstanding		Range of Exercise Prices	Exercisable		Weighted Average Exercise Price
2025		137,797	$10.75 to $21.30		12,797	$	17.13
2024		16,114	$11.62 to $21.30		16,114	$	17.43
2023		118,602	$11.62 to $21.30		118,602	$	20.35

The fair value of options granted is estimated using an option pricing model based on the assumptions set forth in the following table. The Company uses historical data to estimate employee exercise and departure behavior. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and through the expected term. The dividend yield rate is based on the Company’s historical dividend yield. The expected volatility is derived from historical volatility of the Company’s shares and those of similar companies measured against the market as a whole. The Company uses the binomial lattice option pricing model based on the assumptions set forth in the following table.


		2025
Risk free interest rate		4.29%
Expected dividend yield		4.90%
Expected life of award (years)		6.13
Expected volatility		41.56%
Fair value per option		$3.22

The following table provides a summary of stock option activity for the period ended December 31, 2025:


	Shares			Average Exercise Price		Weighted Average Life (in Years)
Outstanding at December 31, 2024		16,114		$	17.43
Options granted		125,000			10.75
Options exercised		—			—
Canceled or forfeited		(1,817	)		18.58
Expired		(1,500	)		18.69
Outstanding at December 31, 2025		137,797			11.34		8.33
Exercisable at December 31, 2025		12,797		$	17.13		1.70

The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. There were no options exercised in 2025. The intrinsic value of stock options exercised in 2024 and 2023 was $0.1 million and $0.4 million, respectively. The intrinsic value of stock options outstanding at December 31, 2025 was $1.0 million.

The following table provides a summary of restricted stock units, including performance-based restricted stock units, and restricted stock activity for the year ended December 31, 2025:


	Shares			Average Grant-Date Fair Value
Unvested shares at December 31, 2024		943,855
Granted		509,417		$	13.60
Vested		(261,228	)	$	19.65
Canceled or forfeited		(272,952	)	$	17.79
Unvested shares at December 31, 2025		919,092

Restricted stock units are rights to receive shares of common stock, subject to forfeiture and other restrictions, which vest over a one to three year period. Restricted stock units are considered to be non-vested shares under the accounting guidance for share-based payment and are not reflected as issued and outstanding shares until the restrictions lapse. At that time, the shares are released to the grantee and the Company records the issuance of the shares. At December 31, 2025, restricted stock awards had vesting periods through October 2028. Included in the December 31, 2025 unvested shares are 562,353 performance-based restricted stock units.