Stock incentive plan

9 Months Ended

Sep. 30, 2024

Stock incentive plan

Stock incentive plan

Note 10 – Stock incentive plan

In accordance with accounting standards, the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost is recognized over the period during which an employee is required to provide service in exchange for the award rather than disclosed in the financial statements.

The following table summarizes option activity under the Company's stock incentive plans during the indicated periods:

	Nine Months Ended September 30,
	2024							2023
		Weighted							Weighted
		Average							Average
		Exercise		Fair Value		Intrinsic			Exercise		Fair Value		Intrinsic
	Options	Price		Per Share		Value		Options	Price		Per Share		Value
Options outstanding, beginning of period	—	$	—	$	—			14	$	25.28	$	9.76
Granted	—		—		—			—		—		—
Forfeited	—		—		—			—		—		—
Exercised	—		—	$	—			—		—		—
Options outstanding, end of period	—	$	—	$	—	$	—	14	$	25.28	$	9.76	$	—
Options exercisable, end of period	—							14

During the nine months ended September 30, 2023, we granted certain officers time-based restricted shares of common stock. The time-based restricted shares vest ratably over a three year period provided the officer is employed with the Company on the applicable vesting date.

The total number of shares underlying non-vested restricted stock was 25,859 and 21,930 at September 30, 2024 and 2023, respectively.  The fair value of the stock is based on the grant date of the award and the expense is recognized over the vesting period.  Unamortized stock-based compensation related to non-vested share-based compensation arrangements granted under the stock incentive plan as of September 30, 2024 and 2023 was $511,250 and $583,220, respectively. The time-based unrecognized compensation of $379,000 is expected to be recognized over a weighted average period of 1.69 years. For the period ended September 30, 2024, there were no forfeitures of restricted stock.

A summary of changes in the Company’s non-vested restricted stock and restricted stock unit awards for the nine months ended September 30, 2024 follows:

		Weighted-
		Average		Aggregate
		Grant-Date		Intrinsic
	Shares	Fair-Value		Value
December 31, 2023	31,077	$	45.93	$	2,369,621
Granted	—		—		—
Vested	(4,431)		51.89		(337,864)
Forfeited	—		—		—
Other (1)	(787)		58.95		(60,009)
September 30, 2024	25,859	$	44.51	$	1,971,748

(1) Represents the incremental decrease in shares that vested based on the restricted stock units vesting at a lower value as opposed to the targeted value of the award.

Stock-based compensation expense was approximately $345,000 and $358,000 for the nine months ended September 30, 2024 and 2023, respectively.