ACCESS Newswire Inc. Stock Compensation Disclosure
Note 9: Stock Options and Restricted Stock Units
On June 7, 2023, the shareholders of the Company approved the 2023 Equity Incentive Plan (the “2023 Plan”). Under the terms of the 2023 Plan, the Company is authorized to issue incentive awards for common stock up to 300,000 shares to employees and other personnel. The awards may be in the form of incentive stock options, nonqualified stock options, restricted stock, restricted stock units and performance awards. The 2023 Plan is effective through April 1, 2033. As of December 31, 2024, there are 365,078 shares which remain to be granted under the 2023 Plan, including 122,076 shares assumed under the Company’s previous 2014 Equity Incentive Plan, as amended.
The following is a summary of stock options issued during the year ended December 31, 2024 and 2023:
|
| Number of Options Outstanding |
|
| Range of Exercise Price |
|
| Weighted Average Exercise Price |
|
| Aggregate Intrinsic Value |
| ||||
Balance on December 31, 2022 |
|
| 81,250 |
|
| $ | 6.80 – 27.71 |
|
| $ | 20.17 |
|
| $ | 462,390 |
|
Options granted |
|
| 30,000 |
|
|
| 26.98 |
|
|
| 26.98 |
|
|
| — |
|
Options exercised |
|
| (2,500 | ) |
|
| 7.76 |
|
|
| 7.76 |
|
|
| 19,400 |
|
Options forfeited/cancelled |
|
| (2,000 | ) |
| 9.26 – 27.71 |
|
|
| 23.10 |
|
|
| — |
| |
Balance on December 31, 2023 |
|
| 106,750 |
|
| $ | 6.80 – 27.71 |
|
| $ | 22.32 |
|
| $ | 176,360 |
|
Options granted |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Options exercised |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Options forfeited/cancelled |
|
| (47,000 | ) |
| 9.26 – 26.00 |
|
|
| 21.97 |
|
|
| — |
| |
Balance on December 31, 2024 |
|
| 59,750 |
|
| $ | 6.80 – 27.71 |
|
| $ | 22.60 |
|
|
| 10,700 |
|
The aggregate intrinsic value in the table above represents the total pretax intrinsic value (i.e. the aggregate difference between the closing price of the Company’s common stock on December 31, 2024 and 2023 of $8.94 and $18.13, respectively, and the exercise price for in-the-money options) that would have been received by the holders if all instruments had been exercised on December 31, 2024 and 2023. As of December 31, 2024, there was $208,000 of unrecognized compensation cost related to stock options, which will be recognized through 2027.
The following is a summary of unvested stock options during the year ended December 31, 2024 and 2023:
|
| Number of Options Outstanding |
|
| Weighted Average Exercise Price |
|
| Weighted Average Grant Date Fair Value |
| |||
Balance on December 31, 2022 |
|
| 44,250 |
|
| $ | 26.55 |
|
| $ | 12.41 |
|
Options granted |
|
| 30,000 |
|
|
| 26.98 |
|
|
| 13.89 |
|
Options vested |
|
| (7,500 | ) |
|
| 27.71 |
|
|
| 13.53 |
|
Options forfeited/cancelled |
|
| (1,500 | ) |
|
| 26.00 |
|
|
| 11.87 |
|
Balance on December 31, 2023 |
|
| 65,250 |
|
|
| 26.78 |
|
|
| 13.12 |
|
Options granted |
|
| — |
|
|
| — |
|
|
| — |
|
Options vested |
|
| (27,750 | ) |
|
| 27.05 |
|
|
| 13.18 |
|
Options forfeited/cancelled |
|
| (15,000 | ) |
|
| 26.00 |
|
|
| 11.87 |
|
Balance on December 31, 2024 |
|
| 22,500 |
|
|
| 26.98 |
|
|
| 13.89 |
|
The following table summarizes information about stock options outstanding and exercisable on December 31, 2024:
|
| Options Outstanding |
|
| Options Exercisable |
| ||||||||||
Exercise Price Range |
| Number |
|
| Weighted Average Remaining Contractual Life (in Years) |
|
| Weighted Average Exercise Price |
|
| Number |
| ||||
$0.01 - 8.00 |
|
| 5,000 |
|
|
| 0.89 |
|
|
| 6.80 |
|
|
| 5,000 |
|
$8.01 - 11.00 |
|
| 2,000 |
|
|
| 4.50 |
|
|
| 10.75 |
|
|
| 2,000 |
|
$11.01 - 16.00 |
|
| 10,000 |
|
|
| 4.16 |
|
|
| 13.21 |
|
|
| 10,000 |
|
$16.01 - 27.00 |
|
| 30,000 |
|
|
| 8.01 |
|
|
| 26.98 |
|
|
| 7,500 |
|
$27.01 – 27.71 |
|
| 12,750 |
|
|
| 7.05 |
|
|
| 27.71 |
|
|
| 12,750 |
|
Total |
|
| 59,750 |
|
|
| 6.45 |
|
|
| 22.60 |
|
|
| 37,250 |
|
Of the 59,750 stock options outstanding, 20,926 are non-qualified stock options. All options have been registered with the SEC.
The following is a summary of restricted stock units issued during the years ended December 31, 2024 and 2023:
|
| Number of RSUs Outstanding |
|
| Weighted Average Grant Date Fair Value |
|
| Aggregate Intrinsic Value |
| |||
Balance on December 31, 2022 |
|
| 50,740 |
|
| $ | 25.00 |
|
| $ | 1,268,500 |
|
Units granted |
|
| 74,832 |
|
|
| 26.08 |
|
|
| 1,951,619 |
|
Units vested/issued |
|
| (21,490 | ) |
|
| 25.24 |
|
|
| (542,408 | ) |
Units forfeited |
|
| (9,250 | ) |
|
| 23.87 |
|
|
| (220,798 | ) |
Balance on December 31, 2023 |
|
| 94,832 |
|
| $ | 25.90 |
|
| $ | 2,456,149 |
|
Units granted |
|
| 43,666 |
|
|
| 12.41 |
|
|
| 541,932 |
|
Units vested/issued |
|
| (18,999 | ) |
|
| 20.26 |
|
|
| (384,830 | ) |
Units forfeited |
|
| (24,333 | ) |
|
| 25.85 |
|
|
| (628,984 | ) |
Balance on December 31, 2024 |
|
| 95,166 |
|
|
| 20.85 |
|
|
| 1,984,267 |
|
During the year ended December 31, 2024, the Company granted 43,666 shares of restricted stock units to employees, contractors and the Board of Directors, which vest at various intervals over the next 3 years. The average grant date fair value of these grants was $12.41 per share during the year ended December 31, 2024. During the year ended December 31, 2024, 18,999 restricted stock units with a grant date average intrinsic value of $20.26 per share, vested. As of December 31, 2024, there was $830,000 of unrecognized compensation cost related to our unvested restricted stock units, which will be recognized through 2027.
During the years ended December 31, 2024 and 2023, the Company recorded compensation expense of $684,000 and $1,365,000, respectively, related to stock options and restricted stock units.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 25, 2025 | Showing above |
| 2022 | Mar 2, 2023 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.