Company: AWX
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001437749-25-025765
Chunk: 18

Company: AVALON HOLDINGS CORP
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 term of the option, 5) the expected dividends on the underlying share for the expected term of the option and 6) the risk-free interest rate(s) for the expected term of the option.

The grant date fair value of the underlying equity was determined to be equal to Avalon’s publicly traded stock price as of the grant dates times the sum of the Class A and Class B common shares outstanding.

The expected term, or time until the option is exercised, is based on historical exercising behavior of previous option holders of a company’s stock. Because of the nature of the vesting described above, the options are separated into five blocks, with each block having its own vesting period and expected term.

For stock option awards, the expected volatility is based on the observed historical volatility of Avalon common stock. There werenoexpected dividends and the risk-free interest rate was based on yield data for U. S. Treasury securities over a period consistent with the expected term.

At March 31, 2024, all options to purchase shares granted were cancelled as the options did not meet the predetermined stock price within the three years following the contractual vesting period. Additionally, all remaining shares previously granted expired. At June 30, 2025 and 2024 there arenooutstanding options.

The stock options vest and become exercisable based upon achieving two critical metrics as follows:

1) Contract Vesting Term: The stock options vest ratably over a fiveyear period.

2) The Avalon common stock price traded on a public stock exchange (NYSE Amex) must reach the predetermined vesting price within three years after the options become vested under the contractual vesting term.

The table below represents the period and predetermined stock price needed for vesting.

               Begins                           Ends                             Predetermined  
               Vesting                          Vesting                          Vesting Price  
  Block 1      12 months after Grant Dates      48 months after Grant Dates              $3.43  
  Block 2      24 months after Grant Dates      60 months after Grant Dates              $4.69  
  Block 3      36 months after Grant Dates      72 months after Grant Dates              $6.43  
  Block 4      48 months after Grant Dates      84 months after Grant Dates              $8.81  
  Block 5      60 months after Grant Dates      96 months after Grant Dates             $12.07  
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