Company: NSTS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001437749-25-009831
Chunk: 749

Company: NSTS Bancorp, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 3
Chunk 749
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 following assumptions: an expected life of 6.5 years, risk-free rate of 4.38%, volatility of 28.0% and a dividend yield of 0.0%. The fair value of stock options granted in 2023 is estimated utilizing the Black-Scholes option pricing model using the following assumptions: an expected life of 6.5 years, risk-free rate of 3.82%, volatility of 29.0% and a dividend yield of 0.0%. Due to the limited historical information of the Company’s stock, management considered the weighted historical volatility of the common stock of the Company and other similar entities for an appropriate period in determining the volatility rate used in the estimation of fair value. The expected life of the stock option was estimated using the simplified method. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The Company recognizes compensation expense for the fair values of these awards, which have graded vesting, on a straight-line basis over the requisite service period of the awards. Upon exercise of vested options, management expects to first draw on treasury stock as the source for shares. The weighted average grant date fair value of stock options granted during the year ended  December 31, 2024 was $4.38. The weighted average grant date fair value of stock options granted during the year ended  December 31, 2023 was $3.56.
    
   The following is a summary of the Company's stock option activity and related information for the periods presented.

     Stock Option   Shares    Weighted Average Exercise Price    Aggregate Intrinsic Value (1)  
             
 Options, outstanding January 1, 2023   —  $—  $— 
 Granted   465,500   9.36     
 Exercised   —   —     
 Forfeited   —   —     
 Options, outstanding December 31, 2023   465,500  $9.36  $70 
 Exercisable - End of Period   23,000  $9.36  $3 
             
 Options, outstanding January 1, 2024   465,500  $9.36  $70 
 Granted   58,000   11.34     
 Exercised   (23,000)  9.