Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 1234

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7A
Chunk 1234
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The Company recognizes compensation expense at
fair value for the plan awards in accordance with ASC 718, Compensation – Stock Compensation. Compensation expense is determined
by the market value of the stock on the date of the award and is being amortized over the expected vesting period.

64 

The following table presents awarded but not yet vested share information
for the plan:

    Shares(thousands)  
    Unearned  Compensation  (thousands)  
    Weighted  Average Granted  Price 
  
    Balance, January 1, 2022 
     83  
    $1,931  

    Granted 
     11  
     1,151  
    $105.17 
  
    Vested 
     (17) 

    Amortization of Compensation expense 
     —  
     (1,350) 

    Balance, December 31, 2022 
     77  
     1,732  

    Granted 
     15  
     1,165  
    $77.63 
  
    Vested 
     (18) 
     —  

    Amortization of Compensation expense 
     —  
     (1,854) 

    Balance, December 31, 2023 
     74  
     1,043  

    Granted 
     19  
     1,003  
    $52.50 
  
    Vested 
     (58) 
     —  

    Amortization of Compensation expense 
     —  
     (1,140) 

    Balance, December 31, 2024 
     35  
    $906  

Unearned compensation is recognized over a period of 4 years.

Note 8 – Business Segment Data

The Company’s Chief Operating Decision Maker
(CODM) consists of the Company’s Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer. The CODM evaluates
segment performance and profitability using net income. This metric provides a clear, consistent basis for analyzing the financial results
of each segment and supports decision-making regarding the allocation of resources.

Resource allocation to the Company’s regulated
and non-regulated segments begins with the annual budgeting process, which establishes initial funding and resource levels for each segment. The
budget incorporates key financial and operational inputs, including anticipated revenues, expenses, capital and financing requirements,
align