Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 538

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1B
Chunk 538
---
 — 

Note
15 – Stock-Based Compensation

Stock-based expense for the years
ended December 31, 2024, and December 31, 2023, was $752,000 and $90,000, respectively.

The Company accounts for forfeitures when
they occur by reversing any previously accrued compensation expense on forfeited options in accordance with ASC 718, Compensation
– Stock Compensation.

On November 17, 2017, the Company’s
stockholders approved the adoption of the 2017 Equity Incentive Plan (“2017 Plan”). The 2017 Plan provided for the grant
of a maximum of 263,127 shares of the Company’s common stock of which up to 187,948 shares of common stock could be granted for
stock options and 75,179 shares of common stock could be issued as restricted stock to Directors and employees of the Company. Stock
options and restricted stock awards currently issued under the 2017 Plan vest at 20% per year beginning on the first anniversary of date
of grant and the options expire seven years after the grant date.

On May 25, 2022, the
Company’s stockholders approved the adoption of the 2022 Equity Incentive Plan (“2022 Plan”). The 2022 Plan provided
for the grant of a maximum of 252,340 shares of the Company’s common stock of which up to 168,227 shares of common stock could
be issued as restricted stock and 84,113 shares of common stock could be granted for stock options to directors and employees of the
Company. The board of directors’ compensation committee specified the vesting schedules for the restricted stock and options. Option
expiration dates were flexible as well but could not exceed ten years from the grant date.

On September 25, 2024, the Company’s
Board of Directors approved the termination of the 2017 Plan and the 2022 Plan. While outstanding awards issued under those plans were
not affected by the plans’ termination, no further awards may be granted under either the 2017 Plan or the 2022 Plan. In connection
with the termination of the 2017 Plan and the 2022 Plan, the Board of Directors approved and adopted the Bancorp 34, Inc. 2024 Equity
Incentive Plan (the “2024 Plan”). The 2024 Plan provides for the grant of a maximum of 525,000 shares of the Company’s
common stock pursuant to