STOCK-BASED COMPENSATION |
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| STOCK-BASED COMPENSATION | NOTE 7 – STOCK-BASED COMPENSATION
During the three months ended March 31, 2026, the Company issued compensatory warrants to a newly appointed director. These warrants are equity‑classified and measured at fair value on the grant date. The warrants vest over 24 months in different tranches and have four different exercise prices. Because exercise prices significantly exceeded the fair value of the common stock on the grant date, they contain an implicit market condition. The Company used the graded vesting method to attribute expenses associated with the award.
For the three months ended March 31, 2026, the Company recognized a total stock-based compensation expense of $2.0 million related to the outstanding compensatory warrants. As of March 31, 2026, total unrecognized compensation cost related to nonvested warrants was $9.6 million, which is expected to be recognized over a weighted average remaining vesting period of 0.71 years. The following table summarizes warrant activity for the period ended March 31, 2026:
The weighted average issue date fair value per share for the warrants issued in Q1 2026 is $0.68. The Company used the Monte Carlo simulation method to estimate the fair value of warrants issued in Q1 2026. The following table summarizes the assumption inputs:
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