v3.26.1
Stock Options and Restricted Stock Units
 3 Months Ended
Mar. 31, 2026
Stock Options and Restricted Stock Units [Abstract]  
STOCK OPTIONS AND RESTRICTED STOCK UNITS

Note 7. STOCK OPTIONS AND RESTRICTED STOCK UNITS

 

Stock-Based Compensation

 

Stock Options

 

In June 2025, the shareholders of the Company approved the amendment to the 2022 Equity Incentive Plan (“2022 Plan”) to increase the number of shares authorized to be used under the plan by 250,000 shares, from 650,000 shares to 900,000 shares.

 

The Company recorded stock-based compensation expense for certain employees and members of the Company’s Board of Directors of $27,000 and $18,000 for the three months ended March 31, 2026 and 2025, respectively, in its condensed consolidated statements of operations, and such amounts were included as a component of operating expenses.

 

A summary of the status of the Company’s stock options as of March 31, 2026 and December 31, 2025, and changes during the periods then ended are presented below:

 

       Wtd. Avg. 
       Exercise 
   Options   Price 
Balance, January 1, 2025   417,003   $7.00 
Granted during the period   60,000    3.00 
Exercised during the period   
-
    
-
 
Terminated/Expired during the period   (51,300)   10.57 
Balance, December 31, 2025   425,703   $6.01 
Granted during the period   
-
    
-
 
Exercised during the period   
-
    
-
 
Terminated/Expired during the period   (30,250)   13.90 
Balance, March 31, 2026   395,453   $5.40 
           
Exercisable at March 31, 2026   380,453   $5.50 

 

The following table summarizes information about outstanding stock options at March 31, 2026:

 

    Number      Wtd. Avg. 
Range of Exercise Price   Outstanding   Wtd.Avg, Life  Exercise Price 
$3.00 - $23.80    395,453   2.4 Years  $5.50 

 

The following table summarizes information about outstanding stock options at December 31, 2025:

 

    Number      Wtd. Avg. 
Range of Exercise Price   Outstanding   Wtd.Avg, Life  Exercise Price 
$3.00 - $23.80    425,703   2.5 Years  $6.01 

As of March 31, 2026, there was $8,000 of unrecognized compensation cost related to non-vested stock option awards, which is to be recognized over the remaining weighted average vesting period of 0.2 years.

 

The aggregate intrinsic value at March 31, 2026 was based on the Company’s closing stock price of $3.23 was $14,000. The aggregate intrinsic value at December 31, 2025 was based on the Company’s closing stock price of $3.07 was approximately $4,000. The aggregate intrinsic value was calculated based on the positive difference between the closing market price of the Company’s Common Stock and the exercise prices of the underlying options.

 

Restricted Stock Units (“RSUs”)

 

During the three months ended March 31, 2026 and 2025, the Company granted 243,172 and 0 RSUs to certain employees and directors. These RSUs vested immediately.

 

A summary of the status of the Company’s RSUs as of March 31, 2026, is presented below.

 

       Wtd. Avg. 
       Grant Date Fair 
   Number of
Units		   Value per
Unit		 
Unvested units as of January 1, 2025   282,628   $6.06 
Granted during the period   3,000    - 
Vested during the period   (95,210)   
-
 
Forfeited during the period   (2,000)   
-
 
Unvested Units as of December 31, 2025   188,418   $6.06 
Granted during the period   243,172    3.19 
Vested during the period but shares not issued   (243,172)   3.19 
Forfeited during the period   -    - 
Unvested Units as of March 31, 2026   188,418   $6.06 
           
Vested as of March 31, 2026   338,382   $4.00 

 

The Company recorded stock-based compensation expense of $923,000 and $417,000 for the three months ended March 31, 2026 and 2025, respectively, in its condensed consolidated statements of operations, and such amounts were included as a component of operating expenses.

 

As of March 31, 2026, there was $226,000 of unrecognized compensation cost related to non-vested RSUs, which is to be recognized over the remaining weighted average vesting period of 1.0 year.