9. Stock-Based Compensation

 

On December 28, 2021, the Company’s stockholders approved the 2021 Incentive Plan (the "Plan"), including the authority to issue 1,000,000 shares of common stock. This Plan is the only long-term plan under which equity compensation may be awarded to employees, advisors and members of the Board aligning their interest with those of stockholders. A new plan was implemented rather than amending the Company’s prior plan, the Amended and Restated 2011 Incentive Plan, to address certain tax law changes. As of  December 31, 2024, 975,188 shares remained available for future issuance under the Plan.

 

Restricted stock awards are measured at a value equal to the market price of the Company's common stock on the date of grant which is recognized over the service period of the shares. Option awards are generally granted with an exercise price either at or 10% above the market price of the Company's common stock at the date of grant, which generally have a 5-year contractual terms and vest over three years.
 
The following table summarizes stock-based compensation expense, which includes expenses related to awards granted under the Plan for the periods indicated:
  

Year Ended December 31,

  

2024

 

2023

Restricted stock awards

 $36  $3 

Total

 $36  $3 

 

Restricted Stock Awards

 

A summary of the Company's restricted stock awards for the year ended  December 31, 2024 follows:

(in thousands, except share data)

 

Number of Shares

 

Weighted Average Grant Date Fair Value

 

Aggregate Grant Date Fair value

Balance as of December 31, 2023

  20,118  $5.22  $105 

Granted

         

Vested

         

Canceled

         

Balance as of December 31, 2024

  20,118  $5.22  $105 

 

As of December 31, 2024, there was  $67 of total unrecognized compensation cost related to nonvested shares granted. The cost is expected to be recognized over a weighted-average period of 2 years. Total fair value of shares vested during the years ended December 31, 2024 and 2023 was $0 and $34, respectively.
 

Historical Timeline

Fiscal YearFiled
2024Mar 31, 2025Showing above
2018Mar 21, 2019

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.