Stock Options and Restricted Stock Units

12 Months Ended

Dec. 31, 2024

Stock Options and Restricted Stock Units

Stock Options and Restricted Stock Units

Note 9: Stock Options and Restricted Stock Units

On June 7, 2023, the shareholders of the Company approved the 2023 Equity Incentive Plan (the “2023 Plan”).  Under the terms of the 2023 Plan, the Company is authorized to issue incentive awards for common stock up to 300,000 shares to employees and other personnel. The awards may be in the form of incentive stock options, nonqualified stock options, restricted stock, restricted stock units and performance awards. The 2023 Plan is effective through April 1, 2033. As of December 31, 2024, there are 365,078 shares which remain to be granted under the 2023 Plan, including 122,076 shares assumed under the Company’s previous 2014 Equity Incentive Plan, as amended.

The following is a summary of stock options issued during the year ended December 31, 2024 and 2023:

	Number of Options Outstanding			Range of Exercise Price		Weighted Average Exercise Price		Aggregate Intrinsic Value
Balance on December 31, 2022		81,250		$	6.80 – 27.71	$	20.17	$	462,390
Options granted		30,000			26.98		26.98		—
Options exercised		(2,500	)		7.76		7.76		19,400
Options forfeited/cancelled		(2,000	)	9.26 – 27.71			23.10		—
Balance on December 31, 2023		106,750		$	6.80 – 27.71	$	22.32	$	176,360
Options granted		—			—		—		—
Options exercised		—			—		—		—
Options forfeited/cancelled		(47,000	)	9.26 – 26.00			21.97		—
Balance on December 31, 2024		59,750		$	6.80 – 27.71	$	22.60		10,700

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (i.e. the aggregate difference between the closing price of the Company’s common stock on December 31, 2024 and 2023 of $8.94 and $18.13, respectively, and the exercise price for in-the-money options) that would have been received by the holders if all instruments had been exercised on December 31, 2024 and 2023. As of December 31, 2024, there was $208,000 of unrecognized compensation cost related to stock options, which will be recognized through 2027.

The following is a summary of unvested stock options during the year ended December 31, 2024 and 2023:

	Number of Options Outstanding			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value
Balance on December 31, 2022		44,250		$	26.55	$	12.41
Options granted		30,000			26.98		13.89
Options vested		(7,500	)		27.71		13.53
Options forfeited/cancelled		(1,500	)		26.00		11.87
Balance on December 31, 2023		65,250			26.78		13.12
Options granted		—			—		—
Options vested		(27,750	)		27.05		13.18
Options forfeited/cancelled		(15,000	)		26.00		11.87
Balance on December 31, 2024		22,500			26.98		13.89

The following table summarizes information about stock options outstanding and exercisable on December 31, 2024: 

	Options Outstanding						Options Exercisable
Exercise Price Range	Number		Weighted Average Remaining Contractual Life (in Years)		Weighted Average Exercise Price		Number
$0.01 - 8.00		5,000		0.89		6.80		5,000
$8.01 - 11.00		2,000		4.50		10.75		2,000
$11.01 - 16.00		10,000		4.16		13.21		10,000
$16.01 - 27.00		30,000		8.01		26.98		7,500
$27.01 – 27.71		12,750		7.05		27.71		12,750
Total		59,750		6.45		22.60		37,250

Of the 59,750 stock options outstanding, 20,926 are non-qualified stock options. All options have been registered with the SEC. 

The following is a summary of restricted stock units issued during the years ended December 31, 2024 and 2023:

	Number of RSUs Outstanding			Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Balance on December 31, 2022		50,740		$	25.00	$	1,268,500
Units granted		74,832			26.08		1,951,619
Units vested/issued		(21,490	)		25.24		(542,408	)
Units forfeited		(9,250	)		23.87		(220,798	)
Balance on December 31, 2023		94,832		$	25.90	$	2,456,149
Units granted		43,666			12.41		541,932
Units vested/issued		(18,999	)		20.26		(384,830	)
Units forfeited		(24,333	)		25.85		(628,984	)
Balance on December 31, 2024		95,166			20.85		1,984,267

During the year ended December 31, 2024, the Company granted 43,666 shares of restricted stock units to employees, contractors and the Board of Directors, which vest at various intervals over the next 3 years. The average grant date fair value of these grants was $12.41 per share during the year ended December 31, 2024. During the year ended December 31, 2024, 18,999 restricted stock units with a grant date average intrinsic value of $20.26 per share, vested. As of December 31, 2024, there was $830,000 of unrecognized compensation cost related to our unvested restricted stock units, which will be recognized through 2027.

During the years ended December 31, 2024 and 2023, the Company recorded compensation expense of $684,000 and $1,365,000, respectively, related to stock options and restricted stock units.