The Company recognizes stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation-Stock Compensation. Stock-based compensation expense was $302 and $335, excluding $4 and $2 of compensation expense related to our Amended and Restated 1996 Employee Stock Purchase Plan, or the ESPP, for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, there was $2,271 of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 3.08 years. As of March 31, 2026, there was $593 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 1.02 years.

During the three months ended March 31, 2026, 18 shares of common stock were issued upon the exercise of stock options. No shares were surrendered to the Company to satisfy minimum tax withholding obligations. Additionally, during the three months ended March 31, 2026, 460 stock options were granted and 159 stock options expired, were canceled or were forfeited. During the three months ended March 31, 2025, the Company issued less than 1 shares of common stock upon the exercise of stock options. No shares were surrendered to the Company to satisfy minimum tax withholding obligations. Additionally, during the three months ended March 31, 2025, 525 stock options were granted and 63 stock options expired, were canceled or were forfeited. The Company has historically estimated the fair value of each option grant on the date of grant using the Black-Scholes option-pricing model. The weighted average assumptions utilized to determine the fair value of options granted during the three months ended March 31, 2026 and 2025 are as follows:

As of March 31, 2026, there were 1,543 options outstanding with a weighted average exercise price of $6.48 per share and 484 options exercisable with a weighted average exercise price of $7.47 per share. As of March 31, 2025, there were 1,415 options outstanding with a weighted average exercise price of $7.33 per share and 531 options exercisable with a weighted average exercise price of $9.02 per share.

During the three months ended March 31, 2026, no shares of restricted stock were granted and 18 shares of restricted stock were forfeited. Additionally, during the three months ended March 31, 2026, 60 shares of restricted stock vested. During the three months ended March 31, 2025, no shares of restricted stock were granted and 21 shares of restricted stock were forfeited. Additionally, during the three months ended March 31, 2025, 83 shares of restricted stock vested.

The Company's ESPP affords eligible employees the right to purchase common stock, via payroll deductions, through various offering periods at a purchase price equal to 85% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. During the three months ended March 31, 2026 and 2025, no shares were issued under the ESPP. The Company recorded compensation charges related to the ESPP of $4 and $2 for the three months ended March 31, 2026 and 2025, respectively.

The following table presents stock-based compensation expense, including expense for the ESPP, in the Company's consolidated statements of operations for the three months ended March 31, 2026 and 2025, respectively:


	Three Months Ended March 31,
		2026		2025
Cost of service sales		$	6	$	7
Cost of product sales		(1)		5
Research and development		(6)		(49)
Sales, marketing and support		48		77
General and administrative		259		297
		$	306	$	337

Comprehensive income (loss) includes net income (loss), unrealized gains and losses from foreign currency translation, and unrealized gains and losses on available for sale marketable securities. The components of the Company’s comprehensive income (loss) and the effect on earnings for the periods presented are detailed in the accompanying consolidated statements of comprehensive income (loss).