The Company adopted its 2024 Equity Incentive Plan in January 2024 to provide equity-based compensation incentives in the form of options, restricted stock unit awards, performance awards, restricted stock awards, stock appreciation rights, and other forms of awards to employees, directors and consultants, including employees and consultants or affiliates, to purchase the Company’s common stock in order to motivate, reward and retain personnel. Upon adoption, an aggregate of 1,700,000 shares of common stock was reserved for grant and issuance pursuant to the equity incentive plan. On November 17, 2025, the stockholders of the Company approved and adopted an amendment to the Company’s 2024 Equity Incentive Plan, as amended, at its 2025 annual meeting of stockholders to increase the number of shares of common stock available for issuance thereunder from 1,700,000 to 4,200,000.

A summary of option activity for the six months ended June 30, 2026, and the year ended December 31, 2025, is presented below:

	Number of Options	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (In Years)
Outstanding - January 1, 2025	938,453	$	5.08	9.20
Granted	727,901	$	1.21	9.41
Exercised	—	$	—	—
Modified/Cancelled	—	$	—	—
Expired/Forfeited	(698,754)	$	4.88	—
Outstanding - December 31, 2025	967,600	$	3.14	8.58
Granted	125,000	$	2.91	9.61
Exercised	(109,755)	$	3.27	—
Modified/Cancelled	—	$	—	—
Expired/Forfeited	(124,147)	$	2.10	—
Outstanding - June 30, 2026	858,698	$	3.24	8.49
Exercisable - June 30, 2026	301,616	$	4.22	7.41

Options granted during the six months ended June 30, 2026 and 2025, were valued using the Black-Scholes option-pricing model with the following assumptions.

	For the Six Months Ended
	June 30, 2026
Weighted average grant date fair value	$	2.21
Expected term (years)		3.89-5.72
Risk-free interest rate		4.32	%
Expected volatility		65.00	%
Expected dividends yield		—	%
Exercise price	$	2.25-3.90

	For the Six Months Ended
	June 30, 2025
Weighted average grant date fair value	$	2.57
Expected term (years)		5.14-5.52
Risk-free interest rate		3.5-3.51	%
Expected volatility		52.0	%
Expected dividends yield		0	%
Exercise price	$	2.20-2.93

The Company estimates its expected volatility by using a combination of historical share price volatilities of similar companies within the Company’s industry. The risk-free interest rate assumption is based on observed interest rates for the appropriate term of the Company’s options on a grant date. The expected option term assumption is estimated using the simplified method and is based on the mid-point between vest date and the remaining contractual term of the option, since the Company does not have sufficient exercise history to estimate expected term of its historical option awards.

Share-based compensation related to options is included in the unaudited condensed consolidated statements of operations as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2026		2025		2026		2025
General and administrative	$	113	$	228	$	216	$	455
Total	$	113	$	228	$	216	$	455

Compensation costs related to non-vested option rewards not yet recognized as of June 30, 2026 was $759 thousand and will be recognized over the next 2.75 years.

A summary of restricted stock units (“RSUs”) activity for the six months ended June 30, 2026, and the year ended December 31, 2025, is presented below:

	Number of Units	Weighted Average Grant Date FV
RSUs outstanding at January 1, 2025	255,716	$	4.13
Granted	247,091	$	2.60
Vested	(134,522)	$	3.61
Forfeited	(217,138)	$	5.51
RSUs outstanding at December 31, 2025	151,147	$	2.66
Granted	344,600	$	3.85
Vested	(102,400)	$	3.51
Forfeited	(6,875)	$	1.56
RSUs outstanding at June 30, 2026	386,472	$	3.52

The total fair value of RSUs vested during the six months ended June 30, 2026 and 2025, was $359 thousand and $403 thousand, respectively.

Stock-based compensation related to RSUs is included in the unaudited condensed consolidated statements of operations as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2026		2025		2026		2025
General and administrative	$	313	$	273	$	471	$	354
Total	$	313	$	273	$	471	$	354

Of the RSUs granted during the six months ended June 30, 2026, 234,100 were determined to be time-based RSUs. Total compensation cost related to non-vested time-based RSUs not yet recognized as of June 30, 2026, was approximately $1,073 thousand which will be recognized on a straight-line basis through the end of the vesting period in 2029. Total compensation cost related to non-vested performance-based RSUs not yet recognized as of June 30, 2026 was approximately $117 thousand.

As of June 30, 2026, and December 31, 2025, the Company had the following warrants outstanding:

	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (In Years)
Warrants outstanding - January 1, 2025	101,672	$	7.06	4.40
Issued	—	$	—	—
Exercised	—	$	—	—
Expired	—	$	—	—
Warrants outstanding - December 31, 2025	101,672	$	7.06	2.92
Issued	94,625	$	16.51	4.56
Exercised	(55,000)	$	10.00	—
Expired	—	$	—	—
Warrants outstanding - June 30, 2026	141,297	$	12.25	3.50
Warrants exercisable - June 30, 2026	141,297	$	12.25	3.50