The Company maintains a long-term incentive plan, the Third Amended and Restated 2018 Equity Incentive Plan (collectively with all amendments referred to as the "2018 Plan"), for employees, non-employee members of its Board of Directors (the "Board"), and consultants. The 2018 Plan, which is administered by the Board, allows the Company to grant equity-based compensation awards, including stock options, stock appreciation rights, performance share units, restricted stock units, restricted stock awards, common stock warrants, or a combination of awards (collectively, "share-based awards"). The Board also has broad authority to determine the terms and conditions of each option or other kind of equity award, adopt, amend and rescind rules and regulations for the administration of the 2018 Plan and amend or modify outstanding options, grants and awards. On April 16, 2026, the Board approved another amendment of the 2018 Plan to increase the number of shares issuable thereunder from 6,500,000 to 8,000,000, which was approved by shareholders on June 18, 2026.

The Company accounts for share-based payments through the measurement and recognition of compensation expense for share-based awards, primarily restricted stock units, made to employees, non-employee members of the Board, and consultants of the Company. The Company recorded share-based compensation expense of $0.3 million and $0.5 million in the three and six months ended June 30, 2026, respectively, and $0.3 million and $0.8 million in the three and six months ended June 30, 2025, respectively.

The Company issues restricted stock units to eligible employees, which are subject to forfeiture until the end of an applicable vesting period. The awards generally vest annually or biannually over three to five years following the date of grant, subject to the employee's continuing employment as of that date. Restricted stock units are valued using the market value on the grant date.


	Units	Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2025	1,045,584	$	2.01
Granted	135,000	$	1.45
Vested	(225,875)	$	2.17
Forfeited	(100,125)	$	2.00
Nonvested as of June 30, 2026	854,584	$	1.88

During the six months ended June 30, 2025, 375 thousand restricted stock units were granted at a weighted average grant date fair value of $1.27. As of June 30, 2026, the Company had approximately $1.2 million of unrecognized share-based compensation related to restricted stock units, which is expected to be recognized over a weighted average period of approximately 1.7 years.