LGL GROUP INC
For the period ended Mar 31, 2026. Filed May 11, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 11, 2026
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Stock-Based Compensation
9. Stock-Based Compensation
Under the Company's2021 Incentive Plan (the "Plan"), and the prior2011 Incentive Plan, as amended, stock-based compensation* maybe issued to employees and non-employee directors. As of March 31, 2026*,786,512 shares remained available for future issuance under the Plan.
The following table summarizes stock-based compensation expense, which includes expenses related to awards granted under the Plan for the periods indicated:
| Three Months Ended March 31, | ||
|---|---|---|
| 2026 | 2025 | |
| Restricted stock awards | $392 | $9 |
| Stock options | 296 | — |
| Total | $688 | $9 |
Restricted Stock Awards
The following table summarizes restricted stock awards activity for the period indicated:
| Number of Shares | Weighted Average Grant Date Fair Value | Aggregate Grant Date Fair Value | |
|---|---|---|---|
| Balance as of December 31, 2025 | 36,274 | $5.79 | $210 |
| Granted | 152,402 | 6.45 | 983 |
| Vested | (57,028) | (6.27) | (358) |
| Canceled | — | — | — |
| Balance as of March 31, 2026 | 131,648 | $6.35 | $835 |
As of* March 31, 2026*, there was $703 of total unrecognized compensation cost related to unvested shares granted. The cost is expected to be recognized over a weighted average period of 1.8 years.
Stock Options
The Company estimates the fair value of stock options on the grant date using the Black-Scholes-Merton option-pricing model. The Black-Scholes-Merton option-pricing model requires subjective assumptions, including future stock price volatility and expected time to exercise. Option awards are generally granted with an exercise price equal to the market price of the Company's stock on the grant date.
The following table presents the weighted-average assumptions for stock options granted:
| For the Three Months Ended March 31, | ||
|---|---|---|
| 2026 | 2025 | |
| Expected volatility (a) | 45.9% | — |
| Expected annual dividend yield (b) | 0.0% | — |
| Risk-free interest rate (c) | 3.6% | — |
| Expected term, in years (d) | 2.7 | — |
| (a) | The expected volatility is based on the implied volatility of the Company's historical stock price data over the expected term. |
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| (b) | The dividend yield is 0.0% as the Company is not expected to pay a dividend. |
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| (c) | The risk-free interest rate is based on the average U.S. Treasury zero-coupon rate over the four days prior to the grant date. We selected the risk-free rate that is commensurate with the length of the remaining performance period as of the grant date, using interpolation where necessary. |
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| (d) | The expected term is the simple average of the vesting periods and the contractual term. |
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The following table provides a rollforward of stock option activity for thethree months ended* March 31, 2026*:
| Number of Options Outstanding | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Weighted Average Remaining Term (in years) | Aggregate Intrinsic Value | |
|---|---|---|---|---|---|
| Outstanding as of December 31, 2025 | — | $— | $— | — | $— |
| Granted | 200,000 | 7.02 | 1.87 | ||
| Exercised | — | — | — | ||
| Forfeited | — | — | — | ||
| Outstanding as of March 31, 2026 | 200,000 | $7.02 | $1.87 | 4.8 | $57 |
| Exercisable as of March 31, 2026 | 160,000 | $7.18 | $2.33 | 4.8 | $34 |
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