v3.26.1
Equity
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Equity
14.Equity

 

Equity Incentive Plans

 

Under the Company’s Amended and Restated 2009 Equity Incentive Plan (the “2009 Plan”) awards of the Company’s common stock could be made to officers, directors, employees, consultants and agents of the Company and its subsidiaries. Following the adoption of the 2023 Plan, no further awards may be made under the 2009 Plan.

 

In May 2023, the Company’s stockholders approved the Company’s 2023 Equity Incentive Plan (the “2023 Plan”) to replace the 2009 Plan. Under the 2023 Plan, awards of the Company’s common stock may be made to officers, directors, employees, consultants and agents of the Company and its subsidiaries. The 2023 Plan was amended in 2024 to increase the number of shares of common stock of the Company issuable under the plan to 1.4 million shares. The 2023 Plan expires on February 23, 2033. Permitted awards under the 2023 Plan include options, stock appreciation rights, restricted stock, restricted stock units, performance stock units, and other cash and stock-based awards. The Company recognizes stock-based compensation costs using a graded vesting attribution method whereby costs are recognized over the requisite service period for each separately vesting portion of the award.

 

Restricted Stock Grants

 

The following table summarizes the status and activity of the Company’s restricted stock grants at December 31, 2025 and 2024, and the changes during the years then ended:

 

   Year Ended December 31, 
   2025   2024 
       Weighted       Weighted 
       Average       Average 
       Grant Date       Grant Date 
   Number of   Fair Value   Number of   Fair Value 
Restricted Stock Grants  Shares   Per Share   Shares   Per Share 
Outstanding at beginning of year  666  $6.00   5,800  $8.89 
Restrictions lifted during the year  (666)  6.00   (4,600)  9.21 
Forfeited during the year  —   —   (534)  9.75 
Outstanding at end of year  —  $—   666  $6.00 

 

During the years ended December 31, 2025 and 2024, the Company recognized approximately $3,000 and $20,000, respectively, of stock compensation expense related to the restricted stock grants.

 

Restricted Stock Units

 

The 2009 Plan permitted the Company to issue Restricted Stock Units (“RSUs”), which entitle each recipient to receive one unrestricted share of common stock upon termination of the recipient’s employment or board service. Also,

 

pursuant to the 2009 Plan, the Company’s Board of Directors adopted the Non-Employee Director’s Deferred Compensation and Equity Award Plan (the “Deferred Compensation Plan”). Pursuant to the Deferred Compensation Plan, non-employee directors received a portion of their compensation in the form of RSUs issued under the 2009 Plan. The 2009 Plan RSUs generally vest on the first anniversary of the grant.

 

The 2023 Plan permits the Company to issue RSUs, which entitle each recipient to receive one unrestricted share of common stock upon termination of the recipient’s employment or board service. Under the 2023 Plan, one-half of the shares vest equally on the first and second anniversaries of the grant date.

 

The following table summarizes the status and activity of the Company’s RSUs at December 31, 2025 and 2024, and the changes during the years then ended:

 

   Year Ended December 31, 
   2025   2024 
       Weighted       Weighted 
       Average       Average 
       Grant Date       Grant Date 
   Number of   Fair Value   Number of   Fair Value 
Restricted Stock Units  Shares   Per Share   Shares   Per Share 
Outstanding at beginning of year  1,070,079  $2.36   272,409  $13.09 
Granted during the year  1,500,000   0.18   1,200,000   0.41 
Restrictions listed during the year  (100,000)  0.39   —   — 
Shares issued during the year  —   —   (373,493)  3.08 
Forfeited during the year  —   —   (28,837)  19.47 
Outstanding at end of year  2,470,079  $1.12   1,070,079  $2.36 

 

For the years ended December 31, 2025 and 2024, the Company recognized approximately $310,000 and $381,000, respectively, of stock compensation expense related to the RSUs.

 

Common Stock Warrants

 

The following table summarizes the status and activity of the Company’s common stock warrants at December 31, 2025 and 2024, and the changes during the years then ended:

 

   Year Ended December 31, 
   2025   2024 
       Weighted       Weighted 
   Number of   Average   Number of   Average 
   Underlying   Exercise Price   Underlying   Exercise Price 
Common Stock Warrants  Shares   Per Share   Shares   Share 
Outstanding at beginning of year  10,819,742  $1.14   11,308,314  $1.09 
Expired during the year  (3,392,155)  1.61   (488,572)  0.0001 
Outstanding at end of year  7,427,587  $0.93   10,819,742  $1.14 

 

Warrants outstanding as of December 31, 2025 are as follows:

 

   Number of   Exercise   Expiration
Common Stock Warrants  Warrants   Price   Date
June 2023 Warrants  1,427,587  $1.90  December 26, 2028
November 2023 Series A Warrants  6,000,000  $0.70  November 6, 2028
   7,427,587       

 

All outstanding warrants are recorded in equity at December 31, 2025 and 2024 following the guidance established by ASC 815-40 “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. The Company’s warrants allow for the potential settlement in cash if certain extraordinary events are effected by the Company, including a 50% or greater change of control in the Company’s common stock. Since those events have been deemed to be within the Company’s control, the Company continues to apply equity treatment for these warrants.