The Quantum Computing Inc. 2019 Equity and Incentive Plan, as amended in 2021 enabled the Company to grant incentive stock options or nonqualified stock options and other equity awards to employees, directors and consultants of the Company up to a total of 3.0 million shares of common stock, all of which have been issued.

On July 5, 2022, the Board of Directors adopted the Quantum Computing Inc. 2022 Equity and Incentive Plan (the “2022 Plan”), which was approved by a majority of the shareholders in September 2022. The 2022 Plan initially provided for the issuance of up to 16 million shares of the Company’s common stock and includes provisions for annual automatic evergreen increases of 1,000,000 shares of common stock. As of June 30, 2026, the total number of shares of our common stock reserved for issuance under the 2022 Plan is 30 million and of that amount a total of 17.9 million shares, including 5.9 million shares underlying options, were issued and outstanding under the 2022 Plan.

The following table summarizes the Company’s option activity for the six months ended June 30, 2026 (in thousands, except exercise price and contractual life data):


	Number Outstanding	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life (Years)
Balance as of January 1, 2026	7,063	$	4.11	2.6
Granted	196	9.82		9.7
Exercised	(1,206)	3.52		0.0
Forfeited	(188)	8.95		0.0
Balance as of June 30, 2026	5,865	4.26		2.6
Vested and exercisable as of June 30, 2026	3,460	$	3.34	2.2

The following table presents the assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of stock options granted during the three and six months ended June 30, 2026 and 2025:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Exercise price	$7.06 - 12.24		$7.06 - 12.24		$7.06 - 12.24		$1.00 - 14.34
Risk-free interest rate	3.8 - 4.3%		3.4 - 4.3%		3.4 - 4.3%		4.0 - 4.2%

Expected volatility	125.7 - 130.1%		130 - 138%		125.7 - 136.2%		130.0 - 138.0%
Expected dividend yield	0	%	0	%	0	%	0	%
Expected life of options (in years)	10		5		10		5


Exercise Price	Outstanding Options	Exercisable Options
$0.00 - 1.00	554	419
$1.00 - 2.00	2,660	1,221
$2.00 - 3.00	1,098	1,098
$3.00 - 6.00	110	30
$6.00 - 8.00	537	505
$8.00 - 12.00	268	77
$12.00 - 22.00	638	110
	5,865	3,460

The weighted average grant-date fair value of stock options granted during the six months ended June 30, 2026 and 2025 was $9.82 and $7.63 per share, respectively. As of June 30, 2026, total unrecognized compensation cost related to common stock options was $8.1 million, which is expected to be recognized over a period of 2.9 years.

As of June 30, 2026, there were 1.1 million shares of the Company’s common stock issued and unvested that had been awarded as stock-based compensation under the 2022 Plan. The following table summarizes the Company’s activity for restricted stock tied to vesting schedules for the three and six months ended June 30, 2026 (in thousands):


	Number Outstanding	Weighted Average Fair Value

Unvested as of December 31, 2025	700	$	5.6
Granted	438	10.1
Vested	(55)	6.8
Forfeited	(6)	7.0
Unvested as of June 30, 2026	1,077	$	5.3

The Company recognized stock-based compensation expense related to common stock options and restricted shares of common stock in the following expense categories of its condensed consolidated statements of operations (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Research and development	$	840	$	467	$	1,596	$	964
Sales and marketing	82		31		144		91
General and administrative	837		1,279		1,265		2,109
Total stock-based compensation	$	1,759	$	1,777	$	3,005	$	3,164

For the six months ended June 30, 2025, stock-based compensation on the condensed consolidated statements of stockholders’ equity was $1.5 million higher than expense recorded in the condensed consolidated statement of operations, due to timing differences between award dates and the realization of stock-based compensation expense.

The Company issued 55 thousand and 428 thousand shares of common stock during the three and six months ended June 30, 2026. The Company did not issue any shares of common stock as compensation during the three and six months ended June 30, 2025. During the six months ended June 30, 2025, the Company issued 25 thousand shares of common stock to former executives per their separation agreements.