20. SHARE-BASED COMPENSATION

On October 26, 2016, the Company’s Board of Directors approved the issuance of up to 2 shares of the Company’s common stock, in the form of restricted stock or options (2016 Stock Plan). Effective January 20, 2017, the 2016 Stock Plan was amended and restated, as further amended effective June 1, 2018, July 30, 2020, August 18, 2021, and as further amended on October 5, 2023, (collectively, the “Incentive Plan”). The Incentive Plan authorizes the issuance of up to 8,625,000 shares of common stock. It authorizes the issuance of equity-based awards in the form of stock options, stock appreciation rights, restricted shares, restricted share units, other share-based awards and cash-based awards to non-employee directors and to officers, employees and consultants of the Company and its subsidiaries, except that incentive stock options may only be granted to the Company’s employees and its subsidiary’s employees. The Incentive Plan expires on October 26, 2026, and is administered by the Company’s Compensation Committee of the Board of Directors. Each of the Company’s employees, directors, and consultants are eligible to participate in the Incentive Plan. As of December 31, 2025, there were 0 shares of common stock available for issuance under the Incentive Plan.

Stock-based compensation expense is included in the consolidated statements of operations as follows:

Because the Company does not have significant historical data on employee exercise behavior, the Company uses the Simplified Method to calculate the expected life of the stock-based option awards granted to employees. The simplified method is calculated by averaging the vesting period and contractual term of the options.

The following table summarizes stock-based option activities and changes during the years ended December 31, 2025 and 2024, as described below:

Restricted Stock Units

During the year ended December 31, 2024, a total of 69, 23 and 16 of restricted stock units were granted to Mr. Galvin, Ms. Kaelin and an employee of the Company, respectively, under the Company’s stock-based compensation plan at a fair value of $1,450 per share, which represents the closing price of the Company’s common stock at the grant date. The restricted stock units vested immediately.

As of December 31, 2025 and 2024, there was a total of $56,415 and $401,076, respectively, in unrecognized compensation costs related to non-vested restricted stock units. 

The following table summarized restricted stock unit activities during the years ended December 31, 2025 and 2024:

Treasury Stock

The Company accounts for treasury stock under the cost method. Shares repurchased are recorded as treasury stock at the cost of the shares acquired and presented as a reduction of stockholders’ equity in the consolidated balance sheets. Upon reissuance of treasury shares, any excess of the issuance price over cost is credited to additional paid-in capital, and any deficit is charged first to additional paid-in capital to the extent of previously recorded credits arising from reissuances of treasury shares, and then to accumulated deficit. As of December 31, 2025 and 2024, the Company held 5 treasury shares with an aggregate carrying value of $92,396. There were no treasury share acquisitions or reissuances during the years ended December 31, 2025 or 2024.