v3.26.1
Stockholders’ Equity
 3 Months Ended
Mar. 31, 2026
Equity [Abstract]  
Stockholders’ Equity

Note 6. Stockholders’ Equity

 

The following are changes in stockholders’ equity for the three months ended March 31, 2025 and 2026:

 

           Additional         
   Common Stock   paid in   Accumulated     
   Shares   Amount   Capital   (Deficit)   Total 
                     
Balance December 31, 2024   14,746,172   $       -   $64,199,000   $(63,621,000)  $578,000 
Issuance of common stock for equity compensation, net of shares repurchased for income tax withholding   121,082    -    (160,000)   -    (160,000)
Equity-based compensation expense   -    -    158,000    -    158,000 
Registered issuance of common stock   1,052,793    -    2,974,000    -    2,974,000 
Net loss   -    -    -    (761,000)   (761,000)
Balance March 31, 2025   15,920,047   $-   $67,171,000   $(64,382,000)  $2,789,000 

 

           Additional         
   Common Stock   paid in   Accumulated     
   Shares   Amount   Capital   (Deficit)   Total 
                     
Balance December 31, 2025   15,969,281   $       -   $67,645,000   $(66,315,000)  $1,330,000 
Equity-based compensation expense   -    -    102,000    -    102,000 
Shares issued in settlement of former Arps shareholder and manager notes   135,572    -    420,000    -    420,000 
Issuance of detachable warrants   -    -    487,000         487,000 
Net loss   -    -    -    (661,000)   (661,000)
Balance March 31, 2026   16,104,853   $-   $68,654,000   $(66,976,000)  $1,678,000 

 

Warrants

 

In association with the issuance of convertible notes (Note 4), 2,375,155 warrants were issued at a weighted average exercise price of $3.20 per share and remain outstanding as of March 31, 2026. The weighted average remaining term of the warrants is 3.9 years as of March 31, 2026.

 

 

Equity Incentive Plan

 

As of March 31, 2026, the Company has $457,000 of total unrecognized share-based compensation expense relative to unvested options, stock awards and stock units, which is expected to be recognized over the remaining weighted average period of 2.2 years.

 

Stock Options

 

The following is a summary of stock option activity for the three months ended March 31, 2026:

 

  

Number of

Options

  

Weighted average

exercise price

per share

  

Remaining

term in years

 
Outstanding on December 31, 2025   763,002   $4.60    5.3 
Granted   1,923   $2.81    8.0 
Forfeited   (22,831)  $2.53      
Outstanding on March 31, 2026   742,094   $4.66    4.9 
                
Exercisable, March 31, 2026   538,842   $5.39    3.6 

 

The fair value of the options issued was calculated using the Black-Scholes option pricing model, based on the following:

 

   2026 
Expected term (in years)   8.0 
Expected volatility   98.3%
Risk-free interest rate   4.2%
Expected dividends  $- 
Weighted average grant date fair value per share  $2.42 

 

Restricted Stock and Performance Share Units

 

There has been no change in restricted stock or performance share units since December 31, 2025.