v3.25.4
Note 18 - Stock Options
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

NOTE 18.     STOCK OPTIONS 

 

The following table summarizes the stockholder approved plans pursuant to which equity awards are granted together with the number of shares authorized for the issuance and the approximate number of shares available for future grants at December 31, 2025:

 

 

# Approved by

# Available

 # Approved byDecember 31,

Stockholder approved plan

Stockholders

2025

2012 Share Incentive Plan

 750,000 

2015 Executive and Employee Stock Option Plan

 2,000,000 

2017 Executive and Employee Stock Option Plan

 3,000,000 280,000

2019 Share Incentive Plan

 2,000,000 290,000

2021 Share Incentive Plan

 1,375,000 330,000

2023 Share Incentive Plan

 1,600,000 450,000

 

The status of the Company’s stock options is summarized as follows:

 

      

Weighted average

 
  

Number of options

  

exercise price

 

Outstanding at December 31, 2023

  7,342,883  $6.31 

Granted

  1,587,929   2.26 

Exercised

  (569)  2.50 

Canceled and forfeited

  (1,291,785)  6.09 

Outstanding at December 31, 2024

  7,638,458  $5.50 

Granted

  1,858,000   1.38 

Exercised

  (275,143)  2.53 

Canceled and forfeited

  (1,641,938)  5.79 

Outstanding at December 31, 2025

  7,579,377  $4.54 

 

  

Number of options

  

Weighted average grant date fair value

 

Non-vested at December 31, 2024

  2,120,647  $2.49 

Granted

  1,858,000   1.09 

Vested

  (1,522,239)  2.54 

Forfeited

  (334,055)  1.59 

Non-vested at December 31, 2025

  2,122,353  $1.37 

 

Common shares required to be issued upon the exercise of stock options would be issued from authorized and unissued shares. Options are valued using the Black-Scholes model. For employee grants, the Company calculates expected life via the simplified method. For non-employee grants, the Company calculates expected life using a combination of past exercise behavior, the contractual term and expected remaining exercise behavior. Inputs used in the valuation models are as follows:

 

  

2025 Grants

  

2024 Grants

 

Exercise price

 $0.90 - $1.85  

$1.02 - $2.42

 

Risk-free rate

  3.9% - 4.5%   3.9% - 4.2% 

Expected dividend yield

      

Expected volatility

  94.5% - 98.1%   92.1% - 95.1% 

Expected term (in years)

  6   6 

Grant date fair value

  $0.70 - $1.47   $0.80 - $1.87 

 

The Company recognized approximately $2,001,000 and $4,013,000 in stock-based compensation expense during the years ended December 31, 2025 and 2024, respectively.

 

The intrinsic value of each option share is the difference between the fair value of our common stock and the exercise price of such option share to the extent it is “in-the-money”. Aggregate intrinsic value represents the value that would have been received by the holders of in-the-money options had they exercised their options on the last trading day of the year and sold the underlying shares at the closing stock price on such day. The intrinsic value calculation at  December 31, 2025 is based on the $3.50 closing stock price of the Company's common stock on  December 31, 2025, the last trading day of  2025.

 

As of December 31, 2025, there were 7,154,906 stock options outstanding and expected to vest with an aggregate intrinsic value of approximately $5,730,000. These options have a weighted average exercise price of $4.70 and a weighted average remaining contractual term of approximately 6 years.

 

As of December 31, 2025, there were 5,457,024 stock options outstanding and exercisable with an aggregate intrinsic value of approximately $2,790,000. These options have a weighted average exercise price of $5.62 and a weighted average remaining contractual term of approximately 5 years.

 

The total intrinsic value of in the money options exercised during the years ended December 31, 2025 and 2024, was approximately $190,000 and $0, respectively. Intrinsic value of exercised shares is the fair value of such shares on the date of exercise less the exercise price of the option on the exercise date.

 

The total fair value of options granted during the years ended December 31, 2025 and 2024, was approximately $2,030,000 and $2,770,000, respectively. The weighted average fair value of options granted during the years ended December 31, 2025 and 2024, was $1.09 and $1.74, respectively. The total fair value of options vested during the years ended December 31, 2025 and 2024, was approximately $3,860,000 and $4,620,000, respectively.

 

The Company allows employees to exercise stock-based awards by surrendering stock-based awards with an intrinsic value equal to the cumulative exercise price of the stock-based awards being exercised, referred to as net settlements. These surrenders are included in stock options exercised in the options rollforward above. During the years ended December 31, 2025 and 2024, the Company received 56,306 and 531 options as payment in the exercise of 30,213 and 38 options, respectively.

 

As of December 31, 2025, there was approximately $1,630,000 of total unrecognized stock-based compensation expense, related to unvested stock options granted under the plans above. This expense is expected to be recognized over a weighted-average period of approximately 1 year.