v3.25.2
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2025
Stock-Based Compensation [Abstract]  
STOCK-BASED COMPENSATION

9. STOCK-BASED COMPENSATION

 

As of June 30, 2025, there were 3,532,430 shares available for the grant of awards under the Company’s 2023 Long Term Incentive Plan (the “2023 Plan”).

 

Restricted Stock Units

 

A summary of RSU activities for the six months ended June 30, 2025 are presented below:

 

   Number of
Shares		   Weighted
Average
Grant Date
Fair Value
per Share		 
Nonvested as of January 1, 2025   169,400   $1.98 
Granted   
-
   $
-
 
Vested   (109,700)  $1.82 
Forfeited   
-
   $
-
 
Nonvested as of June 30, 2025   59,700   $1.73 

During the six months ended June 30, 2025, the Company modified the terms of 150,000 outstanding RSU awards with market based and service based vesting conditions to remove all market based vesting conditions and accelerate the service based vesting. The modified award will vest such that 100,000 awards vested upon modification and 50,000 awards will vest on December 31, 2025.

 

As of June 30, 2025, total unrecognized compensation expense related to restricted stock units was $85 thousand, which is expected to be recognized over a weighted-average period of 0.55 years.

 

Stock Options

 

During the six months ended June 30, 2025, the Company granted stock options to purchase shares of the Company’s common stock to certain employees and board members which vest based on achievement of stock price targets of the Company’s common stock.  As of June 30, 2025, options to purchase 550,000 shares of common stock will vest when the 30-day VWAP meets or exceeds $3.00 per share. The grant date fair value of these options were valued using a Monte Carlo valuation model and will be expensed over the requisite service period.

 

During the six months ended June 30, 2025, the Company granted 360,434 stock options to purchase shares of the Company’s common stock to certain employees and board members which vest over the continued service period of 1 year.

 

A summary of stock options activity for the six months ended June 30, 2025 is presented below:

 

    Stock Options     Weighted
Average
Exercise
Price		     Weighted
Average
Remaining
Contractual Life
(in years)		     Aggregate
Intrinsic Value
(in thousands)		  
Outstanding at January 1, 2025     3,594,484     $ 2.01       6.0     $ 3,825  
Options granted     910,434     $ 1.25                  
Options forfeited     (23,126 )   $ 3.17                  
Options cancelled     (30,875 )   $ 3.40                  
Options exercised     (43,047 )   $ 1.07                  
Outstanding as of June 30, 2025     4,407,870     $ 1.84       6.3       3,780  
Options vested and exercisable as of June 30, 2025     3,250,250     $ 1.96       5.3       2,497  

 

As of June 30, 2025, total unrecognized compensation expense related to stock options was $1.0 million, which is expected to be recognized over a weighted-average period of 1.2 years.

 

The Company recorded stock-based compensation expense for stock options, RSUs, and restricted stock awards of $0.4 million and $0.6 million for the three and six months ended June 30, 2025, respectively, and $0.4 million and $0.7 million for the three and six months ended June 30, 2024, respectively, in general and administrative expenses in the condensed consolidated statements of operations.