Note 15 - Share-based Compensation

6 Months Ended

Jun. 30, 2026

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

Note 15. Share-Based Compensation

Equity Plans

The Company’s board of directors and stockholders approved the following equity plans:

	●	the Amended and Restated 2021 Equity Incentive Plan ("2021 Plan")
	●	the 2023 Equity Inducement Plan ("Inducement Plan")
	●	the 2026 Equity Incentive Plan ("2026 Plan")

The Company has issued stock options, restricted stock awards ("RSAs") and restricted stock units ("RSUs") to employees, consultants and non-employee directors. Stock option awards generally vest over a four-year period and have a maximum term of ten years. Stock options under these plans have been granted with an exercise price equal to the fair market value on the date of the grant. Nonqualified and Incentive Stock Options, RSAs and RSUs may be granted from these plans.

Performance Based Incentive Plan

Starting in 2021, certain senior executives were granted performance stock units ("PSUs") under our 2021 Plan, which generally vest over a three-year period subject to achievement of certain pre-established performance metrics. The number of shares of common stock that would ultimately be issued to settle PSUs granted ranged from 0% to 200% of the target number of shares granted. We estimate the fair value of the PSUs on the date of grant using a Monte Carlo simulation model, with stock-based compensation expense recognized ratably over the applicable three-year performance period. The Company recognized stock-based compensation expense for the PSUs for the three months ended June 30, 2026 and 2025 of $2.1 million and $1.2 million, respectively. The Company recognized stock-based compensation expense for the PSUs for the six months ended June 30, 2026 and 2025 of $3.9 million and $2.1 million, respectively.

The following is a summary of PSU activity for the six months ended June 30, 2026:

						*Weighted*
						*Average Share*				*Weighted*				*Aggregate*
		*Number of*				*Price on Date*				*Average*				*Intrinsic*
		*shares*				*of Vesting*				*Fair Value*				*Value*
		(in thousands, except price data and Contractual Life)
Outstanding at January 1, 2026			1,189				—			$	11.55			$	41,442
Granted			937				—				24.00				134,219
Vested			(1,534	)		$	181.57				8.89				278,493
Cancelled/Forfeited			—				—				-				-
Outstanding, June 30, 2026			592				—				38.14				87,779
Expected to vest			592				—				38.14				87,779

As of June 30, 2026, there was $16.8 million of unrecognized stock-based compensation expense related to outstanding PSUs, which expense is expected to be recognized over 2.4 years.

Restricted Stock Units

Restricted stock units are issued to employees through a vesting plan and distribution schedule after employee remains with the Company for a particular length of time. The following is a summary of RSU activity:

						*Weighted*
						*Average Share*				*Weighted*				*Aggregate*
		*Number of*				*Price on Date*				*Average*				*Intrinsic*
		*shares*				*of Vesting*				*Fair Value*				*Value*
		(in thousands, except price data)
Outstanding, January 1, 2026			1,461				—			$	8.13			$	50,964
Granted			412				—				48.10				19,812
Vested			(516	)		$	96.42				8.67				49,767
Cancelled/Forfeited			(40	)			—				10.73				5,935
Outstanding, June 30, 2026			1,317				—				20.33				195,223
Expected to vest			1,317				—				20.33				195,223

As of June 30, 2026, there was $24.7 million of unrecognized compensation expense related to these RSUs. This expense is expected to be recognized over 3.0 years.

Share-Based Compensation

Employee share-based compensation expenses recognized for the periods indicated (in thousands):

		*Three months ended*								*Six months ended*
		*June 30,*								*June 30,*
		*2026*				*2025*				*2026*				*2025*
Share-based compensation - by expense types
Cost of goods sold		$	170			$	94			$	326			$	177
Research and development			495				331				946				607
Sales and marketing			439				499				891				822
General and administrative			3,759				2,240				7,091				4,120
Total share-based compensation expense		$	4,863			$	3,164			$	9,254			$	5,726