RETRACTABLE TECHNOLOGIES INC Stock Compensation Disclosure
16. STOCK OPTIONS
Stock options
Options for the purchase of 3,649,508 shares of Common Stock have been issued under the 2008 Stock Option Plan. Options for the purchase of 122,150 shares under the 2008 Stock Option Plan were outstanding as of December 31, 2024. No shares are available for future issuance under the 2008 Stock Option Plan, which expired July 25, 2018.
Options for the purchase of 2,000,000 shares of Common Stock are available for future issuance under the 2021 Stock Option Plan.
The Compensation and Benefits Committee administers the Company’s stock option plans.
Stock option exercises
No stock options were exercised in 2025, 2024, or 2023.
Director, officer, and employee options
A summary of Director, officer, and employee options granted and outstanding under the 2008 Stock Option Plan is presented below:
Years Ended December 31, | |||||||||||||||
2025 | 2024 | 2023 | |||||||||||||
| | Weighted | | | Weighted | | | Weighted | |||||||
Average | Average | Average | |||||||||||||
Exercise | Exercise | Exercise | |||||||||||||
Shares | Price | Shares | Price | Shares | Price | ||||||||||
Outstanding at beginning of period |
| 145,950 | $ | 2.05 |
| 147,150 | $ | 2.06 |
| 147,150 | $ | 2.06 | |||
Granted |
| — | $ | — |
| — | $ | — |
| — | $ | — | |||
Exercised |
| — | $ | — |
| — | $ | — |
| — | $ | — | |||
Forfeited |
| (23,800) | $ | 2.75 |
| (1,200) | $ | 2.75 |
| — | $ | — | |||
Outstanding at end of period |
| 122,150 | $ | 1.91 |
| 145,950 | $ | 2.05 |
| 147,150 | $ | 2.06 | |||
Exercisable at end of period |
| 122,150 | $ | 1.91 |
| 145,950 | $ | 2.05 |
| 147,150 | $ | 2.06 | |||
The following table summarizes information about Director, officer, and employee options outstanding under the 2008 Stock Option Plan at December 31, 2025:
Weighted Average | |||||||
Exercise Prices | | Shares Outstanding | | Remaining Contractual Life | | Shares Exercisable | |
$ | 1.05 |
| 60,000 | 0.99 | 60,000 | ||
$ | 2.75 |
| 62,150 | 0.69 | 62,150 | ||
Non-employee options
There were no non-director and non-employee options outstanding in 2025, 2024, or 2023.
Stock-based Compensation
No stock-based compensation expense was recorded in 2025, 2024, or 2023.
Options Pricing Models – Assumptions
The expected life is based on the Company’s historical experience with option exercise trends. The assumptions for expected volatility are based on a calculation of volatility over the years preceding the grant date. Risk-free interest rates are set using grant-date U.S. Treasury yield curves. In its calculations, the Company assumed no dividends. The Company elected a policy to account for forfeitures as they occur, rather than on an estimated basis.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 27, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
| 2015 | Mar 30, 2016 | |
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.