Annual report [Section 13 and 15(d), not S-K Item 405]

CAPITAL STOCK, STOCK PLANS, WARRANTS AND STOCK BASED COMPENSATION (Tables)

CAPITAL STOCK, STOCK PLANS, WARRANTS AND STOCK BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2025

Share-Based Payment Arrangement [Abstract]

SCHEDULE OF STOCK OPTIONS VALUATION ASSUMPTIONS

	2025			2024
	Employee Stock Options Granted
	2025			2024
Weighted-average fair value per share	$	5.98			4.90
Risk -free interest rate ⁽¹⁾		4.45	%		4.04%-4.11	%
Expected volatility of stock ⁽²⁾		58.64	%		59.07%-59.10	%
Dividend yield ⁽³⁾		None			None
Expected option life (years) ⁽⁴⁾		5.3			5.2 - 5.5

	2025			2024
	Outside Director Stock Options Granted
	2025			2024
Weighted-average fair value per share	$	8.61		$	6.87
Risk -free interest rate ⁽¹⁾		4.43	%		4.20	%
Expected volatility of stock ⁽²⁾		57.52	%		56.00	%
Dividend yield ⁽³⁾		None			None
Expected option life (years) ⁽⁴⁾		9.6			9.5

⁽¹⁾

The risk-free interest rate is based on the U.S. Treasury yield in effect at the grant date over the expected term of the option.

⁽²⁾

The expected volatility is based on historical volatility from the Company’s traded Common Stock over the expected term of the option.

⁽³⁾

The Company has never paid any dividends on its Common Stock. Our Loan Agreement prohibits the Company from paying any cash dividends without prior approval from our lender.

⁽⁴⁾

The expected option life is based on historical exercises and post-vesting data.

SCHEDULE OF SHARE-BASED COMPENSATION, ALLOCATION OF RECOGNIZED PERIOD COSTS

The following table summarizes stock-based compensation recognized (within SG&A expenses) for fiscal years 2025 and 2024.

	2025		2024
	Year Ended
	2025		2024
Employee Stock Options	$	419,000	$	358,000
Director Stock Options		399,000		298,000
Total	$	818,000	$	656,000

SCHEDULE OF STOCK OPTIONS ROLL FORWARD

The summary of the Company’s total plans as of December 31, 2025, and 2024, and changes during the period then ended are presented as follows:

SCHEDULE OF STOCK OPTIONS ROLL FORWARD

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽⁵⁾
Options outstanding January 1, 2025		1,000,900		$	6.18
Granted		120,000		$	11.59
Exercised		(121,900	)	$	4.24			$	885,880
Forfeited		(17,000	)	$	8.72
Options outstanding end of period ⁽¹⁾		982,000		$	7.04		4.6	$	5,444,728
Options exercisable at December 31, 2025⁽²⁾		474,000		$	6.69		4.2	$	2,963,467

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽⁵⁾
Options outstanding January 1, 2024		994,500		$	5.57				-
Granted		150,500		$	9.43
Exercised		(97,700	)	$	5.16			$	662,524
Forfeited		(46,400	)	$	5.93
Options outstanding end of period ⁽³⁾		1,000,900		$	6.18		4.7	$	4,894,634
Options exercisable at December 31, 2024⁽⁴⁾		401,000		$	5.62		3.9	$	2,183,072

⁽¹⁾	Options with exercise prices ranging from $3.31 to $12.23^.
⁽²⁾	Options with exercise prices ranging from $3.31 to $10.20^.
⁽³⁾	Options with exercise prices ranging from $3.15 to $10.20^.
⁽⁴⁾	Options with exercise prices ranging from $3.15 to $9.81^.
⁽⁵⁾	The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price.

SCHEDULE OF NON VESTED OPTIONS

The summary of the Company’s nonvested options as of December 31, 2025, and changes during the period then ended are presented as follows:

SCHEDULE OF NON VESTED OPTIONS

				Weighted Average
				Grant-Date
	Shares			Fair Value
Non-vested options January 1, 2025		599,900		$	3.79
Granted		120,000		$	7.51
Vested		(194,900	)	$	3.77
Forfeited		(17,000	)	$	4.45
Non-vested options at December 31, 2025		508,000		$	4.66