Note 14 - Stock-based Compensation

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Text Block]

Note 14. Stock-Based Compensation

2018 Equity Incentive Plan

The 2018 Equity Incentive Plan (the "2018 Plan") was replaced by the 2023 Equity Incentive Plan (the "2023 Plan"), as described below. As of December 31, 2025, stock options outstanding under the 2018 Plan were eliminated following the reverse stock split at 1-for-19 that was effective August 15, 2025.

2020 Inducement Equity Incentive Plan

The Company adopted the 2020 Inducement Equity Incentive Plan (the “2020 Plan”) in March 2020 and terminated it in April 2024. On adoption, 3 shares were reserved for issuance. At termination, the remaining reserved shares were released back to the authorized pool. No shares are reserved for future issuance under the 2020 Plan as of March 31, 2026 and December 31, 2025.

2023 Equity Incentive Plan

In July 2023, the Company’s stockholders approved the 2023 Plan as defined above, which provided for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units, performance-based stock awards and other forms of equity compensation to the Company’s employees, directors and consultants. Stock options granted under the 2023 Plan to employees and consultants generally will vest annually over a five-year period or as determined by the Board’s Compensation Committee (the "Committee"), while grants to non-employee directors vest as determined by the Committee. As of March 31, 2026 and December 31, 2025, 67,888 and 194,520 shares of common stock were reserved for issuance pursuant to future awards under the 2023 Plan. The number of shares available for issuance under the 2023 Plan also includes a quarterly increase commencing on September 1, 2023 by an amount equal to the lesser of (i) 10% of the number equal to the number of shares of common stock outstanding on the applicable adjustment date less the number of shares of common stock outstanding at the beginning of the fiscal quarter immediately preceding the adjustment date, but if such number is a negative number, then the increase will be zero; or (ii) such lesser number of shares as may be determined by the Board.

For the three months ended March 31, 2026. the Committee approved the grant of 200,000 stock options with service-based conditions. The stock options vest in equal installments over requisite service period of 3 years. No stock options with performance-based conditions and were granted during the three months ended March 31, 2026.

The options granted for the 2023 Plan for the three months ended March 31, 2026 and 2025 were valued using the Black-Scholes model based on the following assumptions on the date of issue:

Options with Time-Based Vesting Conditions

	*For the Three Months Ended*
	*March 31,*
	*2026*			*2025*
Risk-free interest rate		4.11	%		4.55	%
Volatility		105.06	%		97.40 - 98.20	%
Expected dividend yield		0	%		0	%
Expected life (in years)		5.50			5.5 - 6.5

Options with Performance-Based Vesting Conditions

	*For the Three Months Ended*
	*March 31,*
	*2026*		*2025*
Risk-free interest rate		—		4.55	%
Volatility		—		98.00 - 98.40	%
Expected dividend yield		—		0	%
Expected life (in years)		—		5.3 - 5.5

The following is a summary of stock option activity for the 2023 Plan options for the three months ended March 31, 2026:

				*Weighted*		*Weighted*
				*Average*		*Average*		*Aggregate*
	*Stock*			*Exercise*		*Remaining*		*Intrinsic Value*
	*Options*			*Price*		*Life*		*(in thousands)*
Outstanding at December 31, 2025		123,678		$	8.07		9.29	$	—
Options exercised		—			—		—		—
Options granted		200,000			1.15		—		—
Cancelled/forfeited		(4,693	)		8.56		—		—
Outstanding at March 31, 2026		318,985		$	3.72		9.63	$	—
Vested and expected to vest at March 31, 2026		318,985		$	3.72		9.63	$	—
Exercisable at March 31, 2026		28,175		$	13.12		8.60	$	—

The weighted-average grant-date fair value of the 2023 Plan options granted during the three months ended March 31, 2026 and 2025 was $0.93 and $8.25 per share, respectively.

Non-Plan Options Issued

On January 6, 2025, the Board approved and issued a total of 26,315 Non-Plan Options as an employee incentive to the Chief Financial Officer. The options vest monthly over 3 years with an exercise price of $10.07 and an expiration date of January 6, 2035.

The Non-Plan Options issued for the three months ended March 31, 2026 and 2025 were valued using the Black-Scholes model based on the following assumptions on the date of issue:

	*For the Three Months Ended*
	*March 31,*
	*2026*		*2025*
Risk-free interest rate		—		4.62	%
Volatility		—		97.00	%
Expected dividend yield		—		0	%
Expected life (in years)		—		5.8

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

			*Weighted*		*Weighted*
			*Average*		*Average*		*Aggregate*
	*Stock*		*Exercise*		*Remaining*		*Intrinsic Value*
	*Options*		*Price*		*Life*		*(in thousands)*
Outstanding at December 31, 2025		26,315	$	10.07		9.02	$	—
Options exercised		—		—		—		—
Options granted		—		—		—		—
Cancelled/forfeited		—		—		—		—
Outstanding at March 31, 2026		26,315	$	10.07		8.78	$	—
Vested and expected to vest at March 31, 2026		26,315	$	10.07		8.78	$	—
Exercisable at March 31, 2026		10,233	$	10.07		8.78	$	—

The weighted-average grant-date fair value of the Non-Plan options granted during the three months ended March 31, 2026 and 2025 was $0 and $7.92 per share, respectively.

Stock-based compensation expense is recorded in selling, general and administrative expenses in the condensed consolidated statements of operations. Stock-based compensation expense for the three months ended March 31, 2026 and 2025 was $64 thousand and $91 thousand, respectively.

Total unrecognized estimated stock-based compensation expense by award type and the remaining weighted average recognition period over which such expense is expected to be recognized at March 31, 2026 was as follows:

	*Unrecognized Expense (in thousands)*		*Remaining Weighted Average Recognition Period*
Stock options (Non-Plan Options)	$	123		1.9
Stock options (2023 Plan Options)	$	600		2.4