STOCK-BASED COMPENSATION EXPENSE

9 Months Ended

Sep. 30, 2025

Share-Based Payment Arrangement [Abstract]

NOTE 8: STOCK-BASED COMPENSATION EXPENSE

The Company recorded stock-based compensation for the three and nine months ended September 30, 2025 and 2024, respectively, that were included in the following line items in our condensed consolidated statements of operations (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024

Cost of revenue	$	23	$	38	$	76	$	114
Research and development		36		47		128		141
Selling		18		27		65		81
General and administrative		133		155		455		465

Total	$	210	$	267	$	724	$	801

Stock-based compensation expense for three months ended September 30, 2025 and 2024 included $50,000 and $50,000, respectively, and for the nine month periods ended September 30, 2025 and 2024 included $150,000 and $153,736, respectively, related to restricted stock awards that directors are entitled to receive pursuant to the Director Compensation Plan. Under this plan each of the five Company’s independent directors is entitled to an Annual Equity Retainer in the amount of $40,000, to be granted on the date of the Company’s annual meeting of shareholders.

The following table summarizes stock options activity through September 30, 2025:

SCHEDULE OF STOCK OPTIONS AWARDS

				Weighted
	Stock Option			Average
	Awards			Exercise
	(in shares)			Price

Outstanding at January 1, 2025		823,125		$	8.24
Forfeited		(15,500	)		11.04
Outstanding at September 30, 2025		807,625			8.19

The following table summarizes information about the outstanding and exercisable options at September 30, 2025 by ranges of exercise prices:

		Options Outstanding								Options Exercisable
				Weighted		Weighted						Weighted
				Average		Average						Average
Exercise		Number		Remaining		Exercise		Intrinsic		Number		Exercise		Intrinsic
Price Range		Outstanding		Contractual		Price		Value		Exercisable		Price		Value
$	4.00-7.00		442,125		6.2	$	4.54	$	-		385,125	$	4.47	$	-
$	7.01-10.00		20,000		2.6	$	8.07	$	-		20,000	$	8.07	$	-
$	10.01-13.00		120,000		1.5	$	10.52	$	-		120,000	$	10.52	$	-
$	13.01-16.00		225,500		7.5	$	14.11	$	-		112,000	$	14.11	$	-

NOTE 8: STOCK-BASED COMPENSATION EXPENSE (continued)

As of September 30, 2025, there was $0.9 million of unrecognized compensation costs related to stock options expected to be recognized over a weighted average period of 1.4 years.

CVD EQUIPMENT CORP 10-Q