Note 15 - Equity Incentive Plan

2023 Equity Incentive Plan

On May 18, 2023, the Company’s stockholders approved the adoption of the Aytu BioPharma, Inc. 2023 Equity Incentive Plan (the “2023 Equity Incentive Plan”), which replaced all previous plans. For the 2023 Equity Incentive Plan, the stockholders approved (a) 200,000 new shares; (b) 87,155 shares “rolled over” to the 2023 Equity Incentive Plan from plans replaced by the 2023 Equity Incentive Plan; and (c) any shares that are returned to the Company under plans replaced by the 2023 Equity Incentive Plan to be added to the 2023 Equity Incentive Plan. On May 21, 2025, the Company’s stockholders approved an amendment (the “Plan Amendment”) to the 2023 Equity Incentive Plan. The Plan Amendment increased the number of shares reserved for issuance under the 2023 Equity Incentive Plan by 300,000 shares to bring the total number of shares reserved for issuance under the 2023 Equity Incentive Plan to 500,000 shares, not including unissued shares from available awards under prior plans or any returned shares. The Plan Amendment became effective immediately upon approval by the Company’s stockholders and the Company registered the 300,000 shares pursuant to a registration statement on Form S-8 filed with the SEC on September 23, 2025. With the approval of the 2023 Equity Incentive Plan, no additional awards will be granted under any previous plans. All outstanding awards previously granted under previous stock incentive plans will remain outstanding and subject to the terms of the plans.

Stock options granted under the 2023 Equity Incentive Plan and previous plans typically have contractual terms of 10 years or less from the grant date and a vesting period ranging from one to four years. The restricted stock and restricted stock units granted under the 2023 Equity Incentive Plan typically have a vesting period of three to four years and restricted stock, and restricted stock units granted from previous plans typically have a vesting period ranging from four to 10 years and four years, respectively. As of March 31, 2026, the Company had 133,988 shares available for grant under the 2023 Equity Incentive Plan.

Stock Options

Stock option activity during the nine months ended March 31, 2026, is as follows:

During the nine months ended  March 31, 2026, the Company did not grant any stock options. As of  March 31, 2026, there was $0.1 million of total unrecognized compensation cost related to non-vested stock options granted by the Company, which is expected to be recognized over a weighted-average period of 1.4 years.

Restricted Stock

Restricted stock activity under the 2023 Equity Incentive Plan during the nine months ended March 31, 2026, is as follows:

During the nine months ended  March 31, 2026, the Company granted 276,295 shares of restricted stock under the Company’s 2023 Equity Incentive Plan with a weighted average grant date fair value of $1.92 per share. As of  March 31, 2026, there was $0.8 million of total unrecognized compensation costs related to non-vested restricted stock granted under the 2023 Equity Incentive Plan, which is expected to be recognized over a weighted-average period of 2.1 years.

As of  March 31, 2026, there were four shares of unvested restricted stock that were granted outside of equity compensation plans approved by security holders, which had less than $0.1 million of total unrecognized compensation costs and is expected to be recognized over a weighted-average period of 0.3 years.

Restricted Stock Units

There were no remaining unvested restricted stock units as of June 30, 2025, and the Company did not grant any restricted stock units during both the nine months ended  March 31, 2026, and 2025.

Stock-Based Compensation Expense

Stock-based compensation expense related to the fair value of stock options, restricted stock and restricted stock units were included in the unaudited consolidated statements of operations as set forth in the below table: