Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 45

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 Consolidated Financial Statements (Unaudited)

The Company recognizes compensation expense for all director and employee share-based compensation awards on a straight-line basis over the requisite service period, which is equal to the vesting schedule of each award, for each vesting portion of an award equal to its grant date fair value.For the three and nine months ended September 30, 2025, the Company recognized in total RSA share-based compensation an expense of $9,000 and a credit of $(7,000), respectively, primarily due to RSA forfeitures in the second quarter of 2025. For the three-month period, the expense included $2,000 related to employees' RSA and $7,000 for directors' RSA compensation. For the nine-month period, the credit comprised $(27,000) for employees' RSA compensation and $20,000 for directors' RSA compensation. For the three and nine months ended September 30, 2024, the Company recognized total RSA share-based compensation expense of $55,000 and $120,000, respectively. The share-based compensation attributable to employees of Patriot amounted to $43,000 and $88,000, respectively. Unrecognized compensation expense attributable to the unvested restricted RSAs outstanding as of September 30, 2025 amounted to $47,000, which amount is expected to be recognized over the weighted average remaining life of the awards of 2.0 years.

2025 Omnibus Equity Incentive PlanOn March 20, 2025, the Company completed a $57.75 million private placement (the "Private Placement"). In connection with the Private Placement, the Company’s Board of Directors has approved the 2025 Omnibus Equity Incentive Plan (the “2025 Plan”) in March 2025. The 2025 Plan received shareholder approval at the shareholders' meeting on June 26, 2025, and became effective on that date.  The 2025 Plan is designed to provide the Company with a competitive advantage in attracting, retaining, and motivating officers, employees, directors, and consultants by offering incentives directly linked to shareholder value. The Compensation Committee of the Board will administer the Plan.Under the 2025 Plan, various types of awards can be issued, including Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units (RSUs), Performance Units, and Other Stock-Based Awards, as defined within the 2025 Plan. The maximum number of shares of Common Stock, Options, and/or Stock Appreciation Rights