Share-Based Compensation

6 Months Ended

Jun. 30, 2026

Share-Based Payment Arrangement [Abstract]

11. Share-Based Compensation

The Company adopted on August 10, 2022, and the stockholders approved on August 18, 2022, the 2022 Stock Plan. On April 22, 2026, the Company adopted the 2026 Equity and Incentive Compensation Plan (the “Plan”) and on June 22, 2026, the stockholders approved the Plan. The Plan provides for the grant of stock options (including stock options intended to be “incentive stock options” as defined in Section 422 of the Code), appreciation rights, restricted stock, RSUs, performance shares, performance units, cash incentive awards and certain other awards based on or related to shares of the Company’s common stock.

As of June 30, 2026 and December 31, 2025, there were 1,938,756 and 328,442 shares available for future issuance under the Plan, respectively.

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


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands of dollars)	2026		2025		2026		2025
Research and development	$	111	$	116	$	218	$	200
General and administrative		596		613		1,183		1,080
Total stock-based compensation expense	$	707	$	729	$	1,401	$	1,280

Unrecognized stock-based compensation costs related to unvested awards and the weighted-average period over which the costs are expected to be recognized as of June 30, 2026, are as follows:


	Stock Options
Unrecognized stock-based compensation expense (in thousands)	$	3,867
Expected weighted-average period compensation costs to be recognized (years)		2.1

A summary of the Company’s stock option activity is as follows:


	Stock Options		Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Life (years)		Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2025		285,801	$	47.80		8.0	$	—
Granted		400,443	$	1.19		—	$	—
Exercised		—	$	—		—	$	—
Forfeited/canceled		—	$	—		—	$	—
Outstanding as of June 30, 2026		686,244	$	20.63		8.9	$	—
Exercisable as of June 30, 2026	188,259		$	49.65		7.1	$	—

The fair value of stock options granted to employees, directors, and consultants was estimated on the date of grant using the Black-Scholes option pricing model using the following weighted-average assumptions:


Assumptions:		Six Months Ended June 30, 2026
Risk-free interest rate		4.23%
Expected volatility		110.53%
Expected term (years)		7.00
Expected dividend		N/A

The weighted-average grant date fair value of the options granted during the six months ended June 30, 2026 and 2025 was $1.04 per share and $0.87 per share, respectively.