Shareholders Equity |
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| Shareholders' Equity |
13. Shareholders’ Equity
Share-based Compensation
Amended and Restated 2013 Incentive Stock Plan, as amended
As of December 31, 2025, there were vested and unvested shares of restricted stock and stock options outstanding under the Company’s Amended and Restated 2013 Incentive Stock Plan, as amended (“Incentive Stock Plan”). The Incentive Stock Plan, as amended, provides for total shares available for restricted stock and stock options of 15,000 (7,500 restricted stock shares and 7,500 stock option shares). The Incentive Stock Plan authorizes the Compensation Committee of the Board of Directors to grant non-statutory stock options to employees. Vesting periods are established by the Compensation Committee at the time of grant.
As of December 31, 2025, there were 7,149 shares available to be granted under the Plan (4,052 shares available for restricted stock grants and 3,097 shares available for non-qualified stock option grants).
Restricted Stock
The Company has an annual incentive compensation program (“AICP”) for its executives which is administered under the Company’s Incentive Stock Plan. The AICP includes a long-term incentive (“LTI”) compensation program in the form of restricted stock awards comprised of two components: one that vests based on future service only, and a second that vests based on future service and performance. Initial awards under both service-only and service plus performance-based components of the AICP LTI plan are determined based on financial performance measures for the immediately preceding fiscal year.
The Company did not grant shares of restricted stock under the AICP during the three months ended December 31, 2025. There are service plus performance-based restricted shares eligible to be granted during fiscal 2026 based on probability of achieving the fiscal 2026 financial targets set by the Company’s Board of Directors. The shares eligible to be granted have been adjusted based on the probable outcome over fiscal 2026 as compared to these financial targets. Though no shares are expected to be earned under these grants, the final number of service plus performance-based restricted shares granted will be determined once the actual financial performance of the Company is determined for fiscal 2026.
Share-based compensation expense attributable to restricted stock was $41 and $55 for the three-month periods ended December 31, 2025 and 2024, respectively. As of December 31, 2025, there was approximately $48 of unrecognized compensation expense related to restricted stock outstanding and the weighted average remaining vesting period for those grants was 0.8 years.
A summary of restricted stock activity is presented as follows:
Stock Options
All stock options outstanding as of December 31, 2025 and September 30, 2025 were non-qualified stock options, had exercise prices equal to the market price on the date of grant, and had expiration dates ten years from the date of grant.
The Company did not grant stock options during the three months ended December 31, 2025. The Company’s stock options previously granted generally vest on annual schedules during periods ranging from two to four years, although some options are fully vested upon grant. Share-based compensation expense attributable to stock options is recognized over their estimated remaining lives and was $72 and $63 for the three-month periods ended December 31, 2025 and 2024, respectively. As of December 31, 2025, there was approximately $388 of unrecognized compensation expense related to unvested stock options outstanding, and the weighted average remaining vesting period for those options was 2.6 years. A summary of stock option activity is presented as follows:
Treasury Stock
During the three months ended December 31, 2025, the Company reissued 592 of its treasury shares to fulfill commitments for the issuance of previously granted restricted share awards that became fully vested and unrestricted. These treasury shares were reissued in lieu of issuing new shares of the Company’s common stock, therefore, while its total number of outstanding shares of common stock increased as a result of the issuance, its total number of issued shares of common stock did not increase. |
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