9) STOCK-BASED COMPENSATION

Stock Options

During the three months ended March 31, 2025 and 2024, the Company granted options to purchase the number of shares of the Company’s common stock set forth in the table below (in thousands):

SCHEDULE OF STOCK OPTION GRANTED

The Company recognizes stock-based compensation expense for stock options granted to employees, directors and certain consultants. The Company estimates the fair value of stock options using the Black-Scholes option pricing model. The fair value of stock options granted is recognized as expense over the requisite service period on a straight-lined basis.

The following weighted-average assumptions were used for stock options granted during the three months ended March 31, 2025 and 2024:

SCHEDULE OF WEIGHTED-AVERAGE ASSUMPTIONS USED FOR STOCK OPTIONS GRANTED

The per-share weighted average grant-date fair value of stock options granted during the three months ended March 31, 2025 and 2024 were as follows:

SCHEDULE OF WEIGHTED AVERAGE GRANT-DATE FAIR VALUE OF STOCK OPTIONS

Vesting of all stock options is subject to continuous service with the Company through the applicable vesting date. As of March 31, 2025, there were approximately 4,460,000 shares of the Company’s common stock subject to outstanding stock options.

Restricted Stock Units

The Company recognizes the fair value of RSUs as expense on a straight-line basis over the requisite service period. For performance-based RSUs, the Company begins recognizing the expense once the achievement of the related performance goal is determined to be probable.

Outstanding RSUs are settled in an equal number of shares of common stock on the vesting date of the award. An RSU award is settled only to the extent vested. Vesting generally requires the continued employment or service by the award recipient through the applicable vesting date. Because RSUs are settled in an equal number of shares of common stock without any offsetting payment by the recipient, the measurement of cost is based on the quoted market price of the stock at the measurement date, which is the grant date.

In lieu of paying cash to satisfy withholding taxes due upon the settlement of vested RSUs, at the Company’s discretion, an employee may elect to have shares of common stock withheld that would otherwise be issued at settlement, the value of which is equal to the amount of withholding taxes payable. No RSUs vested during either of the three months ended March 31, 2025 or 2024. As of March 31, 2025, there were less than 500 RSUs outstanding. The Company did not grant RSUs during either of the three months ended March 31, 2025 or 2024.

Stock-Based Compensation Expense

For the three ended March 31, 2025 and 2024, the Company recognized stock-based compensation expense as follows (in thousands):

SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE