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Benefit Plans
12 Months Ended
Dec. 31, 2022
Benefit Plans [Abstract]  
Benefit Plans

Note 11. Benefit Plans

 

Employee stock ownership plan

 

The Company sponsors an employee stock ownership plan (“ESOP”) that covers substantially all employees who work 1,000 or more hours during the year. The ESOP has, at various times, secured financing from the Company to purchase the Company’s shares on the open market. When the ESOP purchases shares with the proceeds of the Company loans, the shares are pledged as collateral for these loans. The shares are maintained in a suspense account until released and allocated to participant accounts. The ESOP owns 94,434 shares of the Company’s stock at December 31, 2022. All shares held by the ESOP have been released and allocated to participants' accounts. No dividends were paid during the years ended December 31, 2022 and 2021.  The ESOP had no debt to the Company at December 31, 2022 or 2021.

 

The Company recognized compensation expense for contributions of $30 to the ESOP in both 2022 and 2021.  

 

In the event a terminated ESOP participant desires to sell his or her shares of the Company’s stock and the shares are not readily tradable, the Company may be required to purchase the shares from the participant at fair market value. In addition, at its election, the Company may distribute the ESOP’s shares to the terminated participant. At December 31, 2022, 94,434 shares of the Company’s stock, with an aggregate fair market value of approximately $427, are held by ESOP participants who, if terminated, would have rights under the repurchase provisions if the Company's stock were not readily traded. The Company believes because its stock is listed on the Nasdaq Capital Market it meets the ESOP requirements and that there would not be a current obligation for it to repurchase any distributed ESOP shares. 

 

Profit sharing plan and savings plan

 

The Company has a salary reduction and profit sharing plan that conforms to IRS provisions for 401(k) plans. The Company may make profit-sharing contributions with the approval of the Board of Directors. There were no profit-sharing contributions by the Company in 2022 or 2021.