6. Stock-based Compensation

Restricted Stock Units

Restricted stock units (“RSUs”) are issued under the Company’s 2020 Long-Term Incentive Plan (the “2020 Plan”). RSUs are generally subject to the satisfaction of certain service requirements. RSUs granted by the Company to employees generally cliff vest one year after the grant date. Upon vesting, each outstanding RSU will be settled for one share of Common Stock. Employee RSU recipients may elect to net share settle upon vesting, in which case the Company pays the employee’s withholding taxes due upon vesting and withholds a number of shares of equal value. The Company does not expect to repurchase shares to satisfy RSU vests. The fair value of the RSUs awarded is based upon the Company’s closing stock price at the grant date and is expensed over the requisite service period.

The following table summarizes the activity of the Company’s RSUs for the six months ended June 30, 2026:

There were no RSUs granted during the three months ended June 30, 2026 and 2025, respectively. There were 353,500 and zero RSUs granted during the six months ended June 30, 2026 and 2025, respectively.

Stock-based compensation expense related to RSUs was $278,000 and $51,000 for the three months ended June 30, 2026 and 2025, respectively. Stock-based compensation expense related to RSUs was $596,000 and $94,000 for the six months ended June 30, 2026 and 2025, respectively.

No RSUs vested during the three and six months ended June 30, 2026 and 2025, respectively.

Stock Options

Stock options are available for issuance under the 2020 Plan.   Stock options granted by the Company to participants generally vest annually over four years from the grant date and expire ten years from the date of the grant. All outstanding stock options continue to be accounted for in accordance with ASC 718.

The Company did not grant any stock options during the six months ended June 30, 2026 or 2025.  As of June 30, 2026, there were 1,115 stock options outstanding.  

The Company did not have any stock-based compensation expense related to stock options for both the three and six months ended June 30, 2026 and 2025, respectively.

Compensation Expense Related to Equity Awards

The following table sets forth total stock-based compensation expense for the three and six months ended June 30, 2026 and 2025, in thousands:

As of June 30, 2026, the total unrecognized compensation cost related to non-vested RSUs was approximately $385,000. This cost is expected to be recognized over a weighted-average period of 0.38 years.