10. Stock-Based Compensation

From time to time, we issue stock options and restricted stock as compensation for services rendered by our directors and employees.

Restricted Stock

On April 1, 2026, we granted 145,600 shares of restricted common stock to an employee. The grant of restricted common stock was made in accordance with the 2024 Plan, subject to vesting, as follows: 48,534 shares vested on April 1, 2026; 48,533 shares vest on April 1, 2027, and 48,533 shares vest on April 1, 2028.

On March 28, 2025, we granted 73,000 shares of restricted common stock to certain employees. The grants of restricted common stock were made in accordance with the 2015 Plan and 2024 Plan, subject to vesting, as follows: 24,327 shares vested on March 28, 2025; 20,661 shares vested on March 28, 2026, and 20,678 shares vest on March 28, 2027. As part of Jim DeSocio’s February 3, 2026 Separation Agreement, 3,334 shares vested on February 28, 2026.

On March 19, 2024, we granted 127,500 shares of restricted common stock to certain employees. The grants of restricted common stock were made in accordance with the 2015 Plan, subject to vesting, as follows: 42,495 shares vested on March 19, 2024; 42,495 shares vested on April 2, 2025, and 32,342 shares vested on April 2, 2026. As part of Jim DeSocio’s February 3, 2026 Separation Agreement, 10,000 shares vested on February 28, 2026.

Stock compensation is being recognized over the vesting periods. For the three and six months ended June 30, 2026, $528,463 and $703,523, respectively, was recorded on the issuance of the common stock. For the three and six months ended June 30, 2025, $156,558 and $587,419, respectively, was recorded on the issuance of the common stock.

Stock Options

On June 26, 2026, we granted non-employee directors stock options to purchase 30,000 shares at an exercise price of $6.11 per share under the 2023 Non-Employee Director Compensation Plan. The options fully vested upon grant. The total fair value of $120,309 for these stock options was recognized as expense upon grant.

The weighted-average grant date fair value of options granted during the three and six months ended June 30, 2026 was $4.01. The assumptions that were used in calculating such values, were based on estimates at the grant date in the table as follows:

Schedule of Estimated Values of Stock Option Grants Valuation Assumptions

On June 21, 2025, we granted non-employee directors stock options to purchase 27,000 shares at an exercise price of $12.88 per share under the 2023 Non-Employee Director Compensation Plan. The options fully vested upon grant. The total fair value of $246,282 for these stock options was recognized as expense upon grant.

The weighted-average grant date fair value of options granted during the three and six months ended June 30, 2025 was $9.12. The assumptions that were used in calculating such values, were based on estimates at the grant date in the table as follows:

During the six-months ended June 30, 2026, the Company extended the contractual expiration date of stock options held by a former employee. The sole change to the affected awards was an extension of the expiration date from May 29, 2026, to December 31, 2026, representing an extension of approximately seven months. No changes were made to the exercise price, vesting schedule, or any other terms of the awards.

All of the options subject to the modification were fully vested at the time of the modification. In accordance with ASC 718, the Company measured the incremental fair value of the modified awards as the excess of the fair value of the modified options over the fair value of the original options immediately before modification, both measured using the Black-Scholes option-pricing model.

As a result of this modification, the Company recognized incremental stock-based compensation expense of $79,549, which was recorded in full on the modification date as the modified options were fully vested at the time of the modification. This incremental expense is included within general and administrative expense in the accompanying Condensed Consolidated Statements of Operations.

A summary of stock option activity during the six months ended June 30, 2026 and 2025 is as follows: 

Schedule of Stock Options Activity

During the three and six months ended June 30, 2026 and 2025, stock-based compensation for options was $129,016 and $217,272, and $272,151 and $378,052, respectively.

As of June 30, 2026 and December 31, 2025, there were $54,303 and $71,717, respectively, of total unrecognized compensation costs related to stock options granted under our stock option agreements. The unrecognized compensation cost is expected to be recognized over a weighted-average period of one year. The total fair value of stock options that vested during the six months ended June 30, 2026 and 2025 was $120,309 and $637,056, respectively.