Note 9 - Stock-based Compensation

6 Months Ended

Jun. 30, 2026

Notes to Financial Statements

Shareholders' Equity and Share-Based Payments [Text Block]

9.	Stock-Based Compensation

Stock-based compensation expense for the three and six months ended June 30, 2026 and 2025 was allocated as follows:

		Three Months Ended June 30,								Six Months Ended June 30,
(in thousands)		2026				2025				2026				2025
Cost of revenues		$	15			$	31			$	21			$	61
Sales and marketing expenses			66				106				120				224
General and administrative expenses			242				240				397				599
Research and development expenses			57				95				99				188
Total stock-based compensation		$	380			$	472			$	637			$	1,072

As of June 30, 2026, the total compensation cost related to unvested awards not yet recognized was $2.3million and the weighted average period over which it is expected to be recognized is approximately 1.9 years. The Company did not capitalize any stock-based compensation during these quarters.

Restricted stock unit (“RSU”) activity for the six months ended June 30, 2026 was as follows:

										Market-								Performance-
		Time-Based								Based								Based
		Restricted				Grant Date				Restricted				Grant Date				Restricted				Grant Date
		Stock Units				Fair Value				Stock Units				Fair Value				Stock Units				Fair Value
Balance at December 31, 2025			160,430			$	10.70				50,000			$	6.70				16,407			$	41.90
Granted			312,980				5.28				-				-				-				-
Vested			(62,555	)			11.54				-				-				-				-
Forfeited			(21,360	)			6.81				-				-				(1,909	)			41.90
Balance at June 30, 2026			389,495			$	6.41				50,000			$	6.70				14,498			$	41.90

Retroactively presented to reflect 1-for-10 reverse stock split effective on March 13, 2026.

The aggregate fair value of RSUs that vested during the six months ended June 30, 2026, and 2025 was $0.4 million and $0.2 million, respectively. Unvested shares related to market-based and performance-based vesting conditions are reflected at 100% of their target vesting amount in the table above. Actual vesting could range from zero to 150% of their target amounts.

Performance-based RSU awards are contingent on the achievement of certain performance metrics. Compensation cost associated with performance-based RSUs is recognized based on the estimated number of shares that the Company ultimately expects will be earned. If the estimated number of shares to be earned is revised in the future, then stock-based compensation expense will be adjusted accordingly.

Stock option activity for the six months ended June 30, 2026 was as follows:

		Number of Options				Weighted-Average Exercise Price				Weighted-Average Remaining Contractual Term				Aggregate Intrinsic Value (in thousands)
Outstanding and exercisable at December 31, 2025			16,378			$	34.00
Cancelled/Forfeited			(958	)			26.31
Outstanding and exercisable at June 30, 2026			15,420			$	34.42				1.7			$	-

Retroactively presented to reflect 1-for-10 reverse stock split effective on March 13, 2026.

There is no aggregate intrinsic value of stock options at June 30, 2026 because the Company’s closing stock price of $6.15 was below the exercise price of the outstanding options.