Note 13. Stock-Based Compensation

Stock Options

As of June 30, 2026, unrecognized compensation expense related to the unvested portion of the Company’s share options was approximately $0.4 million with a weighted-average remaining vesting period of approximately 0.81 years.

Warrants

As of June 30, 2026, unrecognized compensation expense related to the unvested portion of the Company’s common stock warrants was approximately $0.3 million which is expected to be recognized over the weighted-average remaining vesting period of approximately 0.82 years.

Equity-based awards granted in the form of warrants are not considered granted under the terms of the Company’s Amended and Restated 2023 Equity Incentive Plan (the”2023 Plan”) and are often subject to separate registration rights than those included under the 2023 Plan.

The Company has also granted warrants as a component of debt and equity financing transactions, which were granted fully vested as of the respective transaction dates (see Note 12, Redeemable Common Stock and Shareholders’ Deficit). No compensation expense has been recorded for these transactions.

Restricted Stock Units

During the six months ended June 30, 2026, the Company issued 207,500 RSUs pursuant to the 2023 Plan to employees and non-employee consultants which vest upon the satisfaction of certain service periods. The fair value of these RSUs was determined based on the Company’s stock price on the business day immediately preceding the grant date. The service period of these RSUs is satisfied over a range of 12 months to 4 years.

Additionally, during the six months ended June 30, 2026, the Company issued 901,298 fully vested RSUs in satisfaction of $1.1 million in previously recognized short-term incentive plan accruals.

As of June 30, 2026, unrecognized compensation expense related to the unvested portion of the Company’s RSUs was approximately $2.3 million which is expected to be recognized over the weighted-average remaining vesting period of approximately 2.84 years.

Restricted Share Purchase Agreement (“RSPA”)

As of June 30, 2026, all compensation expense related to the Company’s RSPAs had been recognized.

Performance-Based Restricted Stock Units

During the six months ended June 30, 2026, the Company issued 107,500 PRSUs under the 2023 Plan to employees and non-employee consultants. The PRSUs granted will vest upon the achievement of an adjusted EBITDA metric for the year applicable to the respective grant as well as a service period of four years from the date of grant. The fair value of these PRSUs was determined based on the Company’s stock price on the business day immediately preceding the grant date.

As of June 30, 2026, the unrecognized compensation expense related to the unvested portion of the Company’s PRSUs was $1.4 million, which is expected to be recognized over a weighted average period of 2.02 years.

Other

During the three and six months ended June 30, 2026 the Company issued 750,000 shares of the Company’s common stock to a non-employee consultant. The shares were valued as of the grant date and resulted in $0.7 million of incremental stock-based compensation expense. Additionally, the Company repriced the exercise price of a warrant issued to LamVen in November 2024. The warrant had previously been issued as part of the restructuring of amounts due under prior term note agreements in the issuance of the LamVen Note (see Note 16, Related Party Balances and Transactions). The repricing of the warrant was intended to provide incremental compensation in connection with an existing advisory services agreement with the owner of LamVen. The adjustment of the exercise price from $1.83 to $0.01 resulted in $1.0 million of incremental stock-based compensation expense.