v3.26.1
STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION

NOTE 8 – STOCK-BASED COMPENSATION

 

Equity Incentive Plans

 

The Company maintains the 2025 Omnibus Equity Incentive Plan (the “2025 Plan”), which allows for the grant of various equity-based awards to employees, officers, directors, and consultants. As of June 30, 2026, 10,428,023 shares of Class B Common Stock remained available for future issuance under the 2025 Plan. Although the 2021 Stock Option and Incentive Plan was terminated in October 2025, outstanding awards under that plan remain in effect according to their original terms.

 

In April 2026, 1,126,005 stock options awarded in December 2025 were modified to change the terms of vesting. There was no incremental compensation cost as a result of the modifications.

 

Stock Option Activity

 

A summary of stock option activity for the six months ended June 30, 2026, is as follows (aggregate intrinsic values in thousands):

  

   Options  

Weighted average

exercise price

  

Aggregate

Intrinsic value

  

Weighted average

grant date

fair value

  

Weighted average

remaining

contractual Term

 
Balance at December 31, 2025   6,652,405   $15.54    -   $14.13    7.72 
Granted   406,819   2.89    -   2.33    9.22 
Forfeited   -    -    -    -    - 
Expired   (212,150)   13.96    -    22.92    - 
Outstanding and expected to vest at June 30, 2026   6,847,074    14.84    -    13.29    7.43 
Vested and exercisable at June 30, 2026   3,762,610    19.10    -    16.16    6.20 

 

There were 406,819 options granted during the six months ended June 30, 2026 with a total grant-date fair value of $1.0 million. During the six months ended June 30, 2025, the Company granted 746,847 options with a total grant-date fair value of $28.3 million. The total fair value of stock options vested during the six months ended June 30, 2026 and 2025 was approximately $5.4 million and $5.6 million, respectively.

 

 

The Company utilizes the Black-Scholes option-pricing model to estimate the fair value of stock options on the date of grant. The expected term is estimated using the simplified method, and expected volatility is based on the historical volatility of a peer group of publicly traded companies.

 

The following table presents the weighted-average assumptions used in the Black-Scholes option-pricing model:

  

   Six Months Ended   Six Months Ended 
   June 30, 2026   June 30, 2025 
Weighted average risk-free interest rate   3.98%   4.05%
Weighted average expected volatility   93.94%   105.97%
Weighted average expected term (in years)   7.03    5.84 
Expected dividend yield   -    - 
Weighted average exercise price  $4.32   $31.50 
Estimated fair value of stock price  $4.17   $44.40 

 

Restricted Stock Unit Activity

 

A summary of restricted stock unit activity for the six months ended June 30, 2026 is as follows:

  

  

Number of

Shares

  

Weighted Average

Grant Date

Fair Value

 
Nonvested at December 31, 2025   381,414   $5.10 
Granted   423,933    3.41 
Vested   (196,825)   4.08 
Forfeited   -    - 
Nonvested at June 30, 2026   608,522    4.52 
Vested not yet issued at June 30, 2026   29,373    6.98 

 

The total fair value of RSUs granted and vested during the six months ended June 30, 2026 was approximately $1.5 million and $0.8 million, respectively. There were no RSUs granted or vested during the six months ended June 30, 2025.

 

Allocation of Stock-based Compensation

 

The allocation of stock-based compensation expense was as follows (in thousands):

  

       
   For the three months ended
June 30,		 
   2026   2025 
General, selling and administrative  $2,295   $5,896 
Research and development   1,405    3,814 
Total stock-based compensation  $3,700   $9,710 

 

       
   For the six months ended
June 30,		 
   2026   2025 
General, selling and administrative  $3,636   $11,167 
Research and development   3,420    4,619 
Total stock-based compensation  $7,056   $15,786 

 

As of June 30, 2026, the total unrecognized compensation cost related to outstanding time-based options was $30.0 million, which is expected to be recognized over a weighted-average period of 2.68 years.