Quarterly report [Sections 13 or 15(d)]

Capital Stock, Stock Plans, Warrants and Stock Based Compensation

Capital Stock, Stock Plans, Warrants and Stock Based Compensation

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Abstract]

Capital Stock, Stock Plans, Warrants and Stock Based Compensation

6.	Capital Stock, Stock Plans, Warrants and Stock Based Compensation

The Company has certain stock option plans under which it may award ISO and/or NQSOs to employees, officers, outside directors, and outside consultants. No option was granted during the first quarter of 2026.

The following table summarizes stock-based compensation recognized for the three months ended March 31, 2026, and 2025, for our employee and director stock options.

	2026		2025
	Three Months Ended
Stock Options	March 31,
	2026		2025
Employee Stock Options	$	106,000	$	107,000
Director Stock Options		110,000		89,000
Total	$	216,000	$	196,000

As March 31, 2026, the Company had approximately $1,694,000 of total unrecognized compensation costs related to unvested options for employees and directors. The weighted average period over which the unrecognized compensation costs are expected to be recognized is approximately 2.6 years.

The summary of the Company’s total stock option plans as of March 31, 2026, and March 31, 2025, along with changes during the periods then ended, is presented below. The Company’s stock option plans consist of the 2017 Stock Option Plan and the 2003 Outside Directors Stock Plan:

Schedule of Stock Options Roll Forward

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽⁴⁾
Options outstanding January 1, 2026		982,000		$	7.04
Granted		—		$	—
Exercised		(32,000	)	$	5.98			$	267,095
Options outstanding end of period ⁽¹⁾		950,000		$	7.08		4.4	$	3,536,448
Options exercisable at March 31, 2026⁽²⁾		518,000		$	6.53		3.9	$	2,322,727

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽⁴⁾
Options outstanding January 1, 2025		1,000,900		$	6.18
Granted		50,000		$	10.70
Exercised		(52,500	)	$	3.18			$	389,555
Options outstanding end of period ⁽²⁾		998,400		$	6.56		4.8	$	1,392,954
Options exercisable at March 31, 2025⁽³⁾		415,500		$	5.75		4.1	$	685,432

⁽¹⁾	Options with exercise prices ranging from $3.31 to $12.23
⁽²⁾	Options with exercise prices ranging from $3.31 to $10.70
⁽³⁾	Options with exercise prices ranging from $3.31 to $9.81
⁽⁴⁾	The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option.

During the three months ended March 31, 2026, the Company issued a total of 9,514 shares of its Common Stock under the 2003 Outside Directors Stock Plan to its outside directors as compensation for serving on the Board. The Company recorded approximately $119,000 in compensation expenses (included in SG&A) in connection with the issuance of shares of its Common Stock to outside directors.

During the three months ended March 31, 2026, the Company issued an aggregate 15,844 shares of its Common Stock from cashless exercises of options for the purchase of 28,000 shares of the Company’s Common Stock ranging from $3.95 per share to $7.75 per share. Additionally, the Company issued an aggregate 4,000 shares of its Common Stock from cash exercises of options for the purchase of 4,000 shares of the Company’s Common Stock, at exercise prices of $3.95 per share, resulting in proceeds of approximately $16,000.

In connection with the Company’s sales of its Common Stock in May 2024 and December 2024, the Company issued warrants to certain underwriter, placement agents and their designees to purchase up to an aggregate 188,038 shares of the Company’s Common Stock at exercise prices of $11.50 and $12.19 per share. These warrants remained outstanding as of March 31, 2026.