NOTE 13 – STOCK-BASED COMPENSATION

We grant equity compensation awards to directors, employees, and contractors under the 2021 Omnibus Equity Compensation Plan. We have granted restricted stock units (“RSUs”) and stock options with service-based vesting conditions with vesting typically occurring over a 3-year period.

The award quantities and grant date fair values have been retroactively adjusted to reflect the Reverse Split.

Restricted Stock Units

The following table summarizes the activity of our RSUs granted under our Equity Incentive Plan during the six months ended March 31, 2026:

 SCHEDULE OF RESTRICTED STOCK UNITS VESTING

On March 16, 2026, we awarded 140,497 RSUs vesting over three years beginning on March 1, 2027, and ending on March 1, 2029, to officers and employees. During the quarter ended December 31, 2025, we awarded 32,695 RSUs to new employees. Vesting of 30,771 RSUs awarded during the quarter ended December 31, 2025, occurs over three years beginning on March 1, 2026, and ending on March 1, 2028, and the remaining 1,924 vested on March 2, 2026. The average grant date fair value of RSUs granted during the six months ended March 31, 2026, was $2.31. The Company recognizes compensation cost for unvested share-based awards on a straight-line basis over the requisite service period.

Our total stock-based compensation expense for the six months ended March 31, 2026, was $191 thousand for the amortization of outstanding equity compensation grants. Stock-based compensation of $144 thousand is included in general and administrative expense, $29 thousand in selling and marketing expense, and $18 thousand in research and development expense.

The unamortized stock compensation expense at March 31, 2026, was $707 thousand, and the remaining weighted average term to vesting was 2.33 years.