Item 5. Market for Registrant’s Common Equity
ITEM
5.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED
STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES
Market
Information
In
September 2003, our common stock began trading on the NYSE American, formerly the American Stock Exchange and more recently the NYSE
MKT, under the symbol “MXC”. Prior to September 2003, the Company’s common stock was traded on the over-the-counter
bulletin board market under the symbol “MEXC”. The registrar and transfer agent is Issuer Direct Corporation, 500 Perimeter
Park Drive, Suite D, Morrisville, North Carolina, 27560 (Tel: 877-481-4014). The following table sets forth certain information as to
the high and low sales price quoted for Mexco’s common stock on the NYSE American.
High
Low
2024:
April - June 2023
$ 13.84
$ 10.30
July - September 2023
13.63
11.36
October - December 2023
13.50
9.05
January - March 2024
10.49
9.02
2023:
April - June 2022
$ 24.18
$ 13.79
July - September 2022
20.84
14.43
October - December 2022
18.25
12.40
January - March 2023
15.39
10.50
On
March 31, 2024, the closing sales price of our common stock on the NYSE American was $9.98 per share.
Stockholders
As
of March 31, 2024, we had 2,226,916 shares issued and 827 shareholders of record which does not include shareholders for whom shares
are held in a “nominee” or “street” name. Of these issued shares, 135,517 are held in the treasury.
Dividends
As
of March 31, 2023, the Company had never paid a cash dividend to the Company’s shareholders. Payment of dividends are at the discretion
of our Board of Directors after taking into account many factors, including our financial condition, operating results, current and anticipated
cash needs and plans for expansion. In addition, our current bank loan prohibits us from paying cash dividends on our common stock without
written permission.
On
April 10, 2023, the Company announced that its Board of Directors declared a special dividend of $0.10 per common share to its shareholders
of record at the close of business on May 1, 2023. The special dividend was paid on May 15, 2023. The Company obtained written permission
from WTNB prior to declaring the special dividend.
The
Company can provide no assurance that dividends will be authorized or declared in the future or as to the amount or type of any future
dividends. Our board of directors’ determination with respect to any such dividends, including the record date, the payment date
and the actual amount of the dividend, will depend upon our profitability and financial condition, contractual restrictions, restrictions
imposed by applicable law and other factors that the board deems relevant at the time of such determination.
Subsequently,
on April 30, 2024, the Company announced that its Board of Directors declared a regular annual dividend of $0.10 per common share to its shareholders
of record at the close of business on May 21, 2024. The dividend was paid on June 4, 2024. The Company obtained written permission from
WTNB prior to declaring the regular annual dividend.
Securities
Authorized for Issuance Under Compensation Plans
The
following table includes certain information about our Employee Incentive Stock Plan as of March 31, 2024, which has been approved by
our stockholders.
Number of Shares Authorized for Issuance under Plan
Number of Shares to be Issued upon Exercise of Outstanding Options
Weighted Average Exercise Price of Outstanding Options
Number of Shares Remaining Available for Future Issuance under Plan
2009 Plan
200,000
45,250
$ 5.27
-
2019 Plan
200,000
120,500
10.89
66,000
Total
400,000
165,750
$ 9.36
66,000
21
Issuer
Repurchases
In
March 2023, the Board of Directors authorized the use of up to $1,000,000 to repurchase shares of the Company’s common stock for
the treasury account. This program does not have an expiration date and may be modified, suspended or terminated at any time by the Board.
Under the repurchase program, share of common stock may be purchased from time to time through open market purchases or other transactions.
The amount and timing of repurchases will be subject to the availability of stock, prevailing market conditions, the trading price of
stock, our financial performance and other conditions. Repurchases may also be made from time-to-time in connection with the settlement
of our share-based compensation awards. Repurchases will be funded from cash flow.
The
following table provides information related to repurchases of our common stock for the treasury account during the year ended March
31, 2024:
Total Number of Shares Purchased
Average Price Paid per Share
Total Number of Shares Purchased as Part of Publicly Announced Program
Approximate Dollar Value of Shares that May Yet be Purchased Under the Program
July 1-31, 2023
9,500
$ 12.28
9,500
$ 883,293
August 1-31, 2023
9,500
$ 12.69
9,500
$ 762,742
September 1-30, 2023
7,000
$ 12.57
7,000
$ 674,744
October 1-31, 2023
6,000
$ 12.58
6,000
$ 599,267
November 1-30, 2023
1,839
$ 11.49
1,839
$ 578,141
December 1-31, 2023
3,322
$ 10.02
3,322
$ 544,867
January 1-31, 2024
1,501
$ 10.01
1,501
$ 529,849
February 1-28, 2024
4,266
$ 9.98
4,266
$ 487,288
March 1-31, 2024
7,173
$ 10.08
7,173
$ 414,965
Total
50,101
$ 11.68
50,101
During
the year ended March 31, 2024, the Company repurchased 50,101 shares for the treasury account at an aggregate cost of $585,035, an average
price of $11.68 per share. During the year ended March 31, 2023, the Company repurchased 18,416 shares for the treasury account at an
aggregate cost of $244,494, an average price of $13.28 per share.
Subsequently,
in April 2024, the Company’s Board of Directors authorized the use of up to $1,000,000 to repurchase shares of the Company’s
common stock, par value, $0.50, for the treasury account. This authorization replaced the previously authorized $1,000,000 common stock
repurchase program which had $414,965 remaining at the time it was replaced.
Also
in April 2024, the Company repurchased 13,766 shares for the treasury account at an aggregate cost of $188,637, an average price of $13.70
per share.
On
August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (“IRA 2022”). The IRA 2022, among other
tax provisions, establishes a 1% excise tax on stock repurchases made by publicly traded U.S. corporations, effective for stock repurchases
after December 31, 2022. The IRA 2022 does provide for certain exceptions for repurchases of stock including an exception as long as
the aggregate value of the repurchases for the tax year does not exceed $1,000,000.
ITEM 6.
RESERVED
22