STOCK OPTIONS

3 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

The Company has options outstanding under two stock option plans, the 2010 Stock Option Plan and the 2016 Stock Option Plan (the “2016 Plan”). Options granted under both plans are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted and expire 10 years after the date of grant.

On March 15, 2022, the shareholders of the Company approved the 2022 Stock Option Plan. Effective with this approval, the Company terminated the 2016 Plan along with the 63,750 authorized but unissued options under the 2016 Plan, but it did not affect any of the options previously issued under the 2016 Plan. Under the 2022 Stock Option Plan, 500,000 options were authorized for future grant and are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted. The options expire 10 years after the date of grant.

During the 13-week period ended December 31, 2022, no options to purchase shares of common stock were issued by the Company.

During the 13-week period ended January 1, 2022, no options to purchase shares of common stock were issued by the Company.

The Company also maintains a Section 162(m) Cash Bonus Plan. Under the Company's Section 162(m) Cash Bonus Plan, compensation paid in excess of $1,000,000 to any employee who is the chief executive officer or one of the three highest paid executive officers on the last day of that tax year (other than the chief executive officer or the chief financial officer) is not tax deductible.

A summary of stock option activity is presented below:


	2023
	Shares	Weighted Average Exercise Price	Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding, beginning of period	544,125	$19.63	6.1 years
Options:
Granted	—
Exercised	—
Canceled or expired	—
Outstanding and expected to vest, end of period	544,125	$19.63	5.8 years	$	612,000
Exercisable, end of period	353,875	$20.32	4.9 years	$	306,000
Shares available for future grant	477,500

Compensation cost charged to operations for the 13 weeks ended December 31, 2022 and January 1, 2022 for share-based compensation programs was approximately $79,000 and $74,000, respectively. The compensation cost recognized is classified as a general and administrative expense in the consolidated condensed statements of income.

As of December 31, 2022, there was approximately $464,000 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a period of 3.7 years.