Quarterly report [Sections 13 or 15(d)]

STOCKHOLDERS??? EQUITY

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STOCKHOLDERS’ EQUITY
 6 Months Ended
Jun. 30, 2025
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

NOTE D – STOCKHOLDERS’ EQUITY

Stock Incentive Plan

The Company adopted the 2022 Stock Incentive Plan, (the “2022 Plan”), approved by its Board of Directors on July 25, 2022 and its stockholders on September 20, 2022. The 2022 Plan provides for the grant of any or all of the following types of awards: (a) stock options, (b) restricted stock, (c) deferred stock, (d) stock appreciation rights, and (e) other stock-based awards including restricted stock units.

As of June 30, 2025, there were 92,500 shares of common stock subject to outstanding awards under the 2022 Plan and 2,040,000 shares of common stock available for issuance under the 2022 Plan. In addition, there were 425,000 shares of common stock subject to outstanding awards under the 2013 Plan.

Restricted Stock Units

A summary of restricted stock unit activity for the six months ended June 30, 2025 is as follows (each restricted stock unit issued by the Company represents the right to receive one share of the Company’s common stock):

               
    Number of Shares     Weighted-Average Grant Date Fair Value  
Balance of restricted stock units outstanding at December 31, 2024     487,500     $ 1.66  
Grants of restricted stock units     70,000       1.41  
Vested restricted stock units     (40,000 )     (1.90 )
Balance of restricted stock units outstanding at June 30, 2025     517,500     $ 1.61  

 

  

Restricted stock unit compensation expense was $80,000 and $95,000 for the three months ended June 30, 2025 and 2024, respectively. Restricted stock unit compensation expense was $161,000 and $210,000 for the six months ended June 30, 2025 and 2024, respectively. Stock-based compensation expense is included in general and administrative expenses in the unaudited condensed consolidated statements of operations.

The Company had an aggregate of $198,000 of unrecognized restricted stock unit compensation as of June 30, 2025 to be expensed over a weighted average period of approximately one year.

All of the Company’s outstanding (unvested) restricted stock units have dividend equivalent rights. During the three months ended June 30, 2025 and 2024, the Company paid a total of $11,000 and $2,000, respectively of such dividend equivalent rights. During the six months ended June 30, 2025 and 2024, the Company paid a total of $11,000 and $37,000, respectively of such dividend equivalent rights. As of June 30, 2025 and December 31, 2024, there was $137,000 and $121,000, respectively, accrued for dividend equivalent rights which were included in other accrued expenses.