12. Equity Incentive Plan

On September 27, 2024, the Board approved the Company’s 2024 Equity Incentive Plan (the “Equity Incentive Plan”).

On October 10, 2024, the Company granted stock options to certain individuals who were the Company’s directors and employees to purchase an aggregate of 176,017 shares of common stock at an exercise price of $6.90 per share. The options have a contractual term of ten years and vest upon the satisfaction of service conditions for Company employees and performance conditions for Company directors. Of the 176,017 stock options granted, 74,862 stock options vested on February 18, 2025 upon the completion of the Company’s IPO.

The fair value of the stock options was estimated using the Black-Scholes option-pricing model. The following table summarizes the significant assumptions used to estimate the fair value of the stock option.

 Schedule of Assumptions Used to Estimate the Fair Value of the Stock Option

During the six months ended June 30, 2026, the Company granted options to purchase 120,000 shares of common stock under the Equity Incentive Plan. One-third of the options vested immediately upon grant, and the remaining two-thirds vest in substantially equal monthly installments over two years, subject to continued service.

As of June 30, 2026, 254,969 options were outstanding, of which 146,420 were vested and exercisable and 108,549 were unvested.

The Company recognized stock-based compensation expenses of $0.6 million and $0.9 million during the three and six months ended June 30, 2026, respectively, and $0.003 million and $3.5 million during the three and six months ended June 30, 2025, respectively. Stock-based compensation expenses are included in selling, general and administrative expenses in the Consolidated Statements of Operations.

As of June 30, 2026, the Company’s unrecognized stock-based compensation expense related to unvested stock options was $2.75 million.