Quarterly report pursuant to Section 13 or 15(d)

STOCK REPURCHASES

v3.24.2.u1
STOCK REPURCHASES
6 Months Ended
Jun. 30, 2024
Other Liabilities Disclosure [Abstract]  
STOCK REPURCHASES

NOTE K – STOCK REPURCHASES

On June 13, 2023, the Board of Directors authorized an extension and increase of the Company’s share repurchase program (the “Share Repurchase Program”) to repurchase up to $5,000,000 of common stock over the subsequent 24 month period. The common stock may be repurchased from time to time in open market transactions or privately negotiated transactions at the Company’s discretion. The timing and amount of the shares repurchased is determined by management based on its evaluation of market conditions and other factors. The Share Repurchase Program may be increased, suspended or discontinued at any time. Since inception of the Share Repurchase Program through June 30, 2024, the Company has repurchased an aggregate of 10,098,241 shares of its common stock at an aggregate cost of $19,583,396 (exclusive of commissions) or an average per share price of $1.94.

During the three months ended June 30, 2024, the Company repurchased an aggregate of 373,701 shares of its common stock at an aggregate cost of $688,410 (exclusive of commissions) or an average per share price of $1.84. During the six months ended June 30, 2024, the Company repurchased an aggregate of 457,445 shares of its common stock at an aggregate cost of $870,480 (exclusive of commissions) or an average per share price of $1.90.

On June 28, 2024, the Company entered into a written trading plan (the “10b5-1 Plan”) under Rule 10b5-1 of the Securities Exchange Act of 1934 (the “Exchange Act”). Adopting a trading plan that satisfies the conditions of Rule 10b5-1 allows a company to repurchase its shares at times when it might otherwise be prevented from doing so due to self-imposed trading black-outs or pursuant to insider trading laws. Purchases under the 10b5-1 Plan may be made during the following periods: (1) beginning on July 8, 2024 until two trading days after the Company issues a press release announcing its financial results for the quarter ended June 30, 2024, and (2) beginning on October 1, 2024 until two trading days after the Company issues a press release announcing its financial results for the quarter ended September 30, 2024. Under the 10b5-1 Plan, the Company’s third party broker may purchase up to 1,000,000 shares of the Company’s common stock, subject to certain price, market, volume and timing constraints, in accordance with the terms of the plan and subject to Rule 10b5-1 and Rule 10b-18 of the Exchange Act.

On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations occurring on or after January 1, 2023. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. The excise tax applies in cases where the total value of the stock repurchase during the taxable year exceeds $1,000,000. As such, the Company did not incur the 1% excise tax during the six months ended June 30, 2024.

At June 30, 2024, the dollar value of remaining shares that may be repurchased under the Share Repurchase Program was $3,502,225.