Note 8 — Equity-based Compensation

2016 and 2017 Equity Incentive Plans

The Company’s 2016 Equity Incentive Plan and the 2017 Incentive Plan, as amended in June 2023 and August 2025 (collectively, the “Plans”), provide for the issuance of up to 397,473 shares and 2,250,000 shares, respectively. In August 2025, the Company amended the 2017 Incentive Plan to increase the number of shares of common stock authorized for issuance thereunder by 1,500,000 shares. In addition, unless the Compensation Committee specifically determines otherwise, the maximum number of shares available under the Plans and the awards granted under the Plans will be subject to appropriate adjustment in the case of any stock dividends, stock splits, recapitalizations, reorganizations, mergers, consolidations, exchanges or other changes in capitalization affecting the Company’s common stock. The awards may be made in the form of restricted stock awards or stock options, among other things. As of March 31, 2026 and December 31, 2025, 1,676,973 and 1,675,223 shares were available to be granted under the Plans, respectively. 

On December 19, 2022, a total of 77,000 shares of restricted common stock were awarded to employees. The restricted shares vest 25% per year over a four-year period. The fair value of $6.40 per share, the stock price on grant date, is being recognized as expense on a straight-line basis over the vesting period. During the three months ended March 31, 2026, 1,750 shares of unvested common stock were forfeited due to the termination of three employees. As of March 31, 2026, 63,750 of the shares issued on December 19, 2022 were vested or forfeited.

On January 11, 2024, 20,000 shares of restricted common stock with a fair value of $2.65 per share, the stock price on the grant date, were awarded to an employee. 10,000 of the shares vested and the expense related to these shares was recognized on the grant date. The remaining 10,000 shares vested in January 2025. The grant date fair value of $2.65 per share is being recognized as expense on a straight-line basis over the vesting period. As of March 31, 2026, the shares issued on January 11, 2024 were fully vested.

On December 17, 2024, 100,000 shares of restricted common stock with a fair value of $7.78 per share, the stock price on the grant date, were awarded to employees and directors. 10,000 of the shares issued to one individual vested and the expense related to these shares was recognized on the grant date. The remaining 30,000 shares awarded to the same individual vest over a three-year period. The remaining 60,000 shares awarded to other individuals vest 25% per year over a four-year period. The grant date fair value of $7.78 per share is being recognized as expense on a straight-line basis over the vesting period. During the three months ended March 31, 2026, none of the shares became vested or were forfeited. As of March 31, 2026, 50,000 of the shares issued on December 17, 2024 had been vested or forfeited.

On December 12, 2025, 40,000 shares of restricted common stock with a fair value of $3.83 per share, the stock price on the grant date, were issued to an employee. The grant date fair value of $3.83 per share is being recognized as expense on a straight-line basis over the vesting period of four years. As of March 31, 2026, none of the shares issued on December 12, 2025 had vested or been forfeited.

Restricted Stock

Restricted stock activity for the three months ended March 31, 2026 is summarized below:

Schedule of Restricted Stock Activity

The Company recognizes forfeitures as they occur. There was no reduction of stock compensation expense related to the forfeitures for the three months ended March 31, 2026 and 2025.

Stock compensation expense related to restricted stock, excluding the recognition of forfeitures, was $70 thousand and $79 thousand for the three months ended March 31, 2026 and 2025, respectively.

Unrecognized stock compensation expense was $0.5 million as of March 31, 2026, which will be recognized over a weighted-average period of 2.7 years.

Stock Options

Stock options expire ten years after the grant date. Options that have been granted are exercisable and vest based on the terms of the related agreements.

The following table summarizes the Company’s stock options activity after December 31, 2025:

Schedule of Stock Option Activity

As of March 31, 2026, all outstanding stock options are fully vested. The stock options outstanding had no intrinsic value as of March 31, 2026 and December 31, 2025.