Note 12. Stock-based Compensation

Incentive Plans

The Quantum Computing Inc. 2019 Equity and Incentive Plan, as amended in 2021 enabled the Company to grant incentive stock options or nonqualified stock options and other equity awards to employees, directors and consultants of the Company up to a total of 3.0 million shares of common stock, all of which have been issued.

On July 5, 2022, the Board of Directors adopted the Quantum Computing Inc. 2022 Equity and Incentive Plan (the “2022 Plan”), which was approved by a majority of the shareholders in September 2022. The 2022 Plan initially provided for the issuance of up to 16 million shares of the Company’s common stock and includes provisions for annual automatic evergreen increases of 1,000,000 shares of common stock. As of March 31, 2026, the total number of shares of our common stock reserved for issuance under the 2022 Plan is 20 million and of that amount a total of 17.4 million shares, including 6.1 million shares underlying options, were issued and outstanding under the 2022 Plan.

Options

The following table summarizes the Company’s option activity for the three months ended March 31, 2026 (in thousands, except exercise price and contractual life data):

The following table presents the assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of stock options granted during the three months ended March 31, 2026 and 2025:

The following table summarizes the exercise price range as of March 31, 2026 (in thousands, except exercise price data):

The weighted average grant-date fair value of stock options granted during the three months ended March 31, 2026 and 2025 was $8.91 and $7.40 per share, respectively. As of March 31, 2026, total unrecognized compensation cost related to common stock options was $10.1 million, which is expected to be recognized over a period of 3.38 years.

Restricted Stock

As of March 31, 2026, there were 760 thousand shares of the Company’s common stock issued and unvested that had been awarded as stock-based compensation under the 2022 Plan. The following table summarizes the Company’s activity for restricted stock tied to vesting schedules for the three months ended March 31, 2026 (in thousands):

Stock-based Compensation

The Company recognized stock-based compensation expense related to common stock options and restricted shares of common stock in the following expense categories of its condensed consolidated statements of operations (in thousands):

For the three months ended March 31, 2025, stock-based compensation on the condensed consolidated statements of stockholders’ equity was $1.5 million higher than expense recorded in the consolidated statement of operations, due to timing differences between award dates and the realization of stock-based compensation expense.

The Company issued 373 thousand shares of common stock during the three months ended March 31, 2026. The Company did not issue any shares of common stock as compensation during the three months ended March 31, 2025.