Note 11 — Share-based compensation

The Company adopted its 2024 Equity Incentive Plan in January 2024 to provide equity-based compensation incentives in the form of options, restricted stock unit awards, performance awards, restricted stock awards, stock appreciation rights, and other forms of awards to employees, directors and consultants, including employees and consultants or affiliates, to purchase the Company’s common stock in order to motivate, reward and retain personnel. Upon adoption, an aggregate of 1,700,000 shares of common stock was reserved for grant and issuance pursuant to the equity incentive plan. On November 17, 2025, the stockholders of the Company approved and adopted an amendment to the Company’s 2024 Equity Incentive Plan, as amended, at its 2025 annual meeting of stockholders to increase the number of shares of common stock available for issuance thereunder from 1,700,000 to 4,200,000.

A summary of option activity for the three months ended March 31, 2026, and the year ended December 31, 2025, is presented below:

Options granted during the three months ended March 31, 2026 and 2025, were valued using the Black-Scholes option-pricing model with the following assumptions.

The Company estimates its expected volatility by using a combination of historical share price volatilities of similar companies within the Company’s industry. The risk-free interest rate assumption is based on observed interest rates for the appropriate term of the Company’s options on a grant date. The expected option term assumption is estimated using the simplified method and is based on the mid-point between vest date and the remaining contractual term of the option, since the Company does not have sufficient exercise history to estimate expected term of its historical option awards.

Share-based compensation related to options is included in the unaudited condensed consolidated statements of operations as follows:

Compensation costs related to non-vested option rewards not yet recognized as of March 31, 2026 was $971 thousand and will be recognized over the next 3 years.

A summary of restricted stock units (“RSUs”) activity for the three months ended March 31, 2026, and the year ended December 31, 2025, is presented below:

The total fair value of RSUs vested during the three months ended March 31, 2026 and 2025, was $115 thousand and $140 thousand, respectively.

Stock-based compensation related to RSUs is included in the unaudited condensed consolidated statements of operations as follows:

Of the RSUs granted during the three months ended March 31, 2026, 234,100 were determined to be time-based RSUs. Total compensation cost related to non-vested time-based RSUs not yet recognized as of March 31, 2026, was approximately $1,199 thousand which will be recognized on a straight-line basis through the end of the vesting period in 2029. Total compensation cost related to non-vested performance-based RSUs not yet recognized as of  March 31, 2026 was approximately $320 thousand.

Warrants

As of March 31, 2026, and December 31, 2025, the Company had the following warrants outstanding: