The following is a summary of stock option activity during the six months ended June 30, 2026:


	Number of options outstanding			Weighted average exercise price		Average remaining contractual life (in years)		Aggregate intrinsic value (in thousands)
Outstanding – December 31, 2025		9,119,589		$	2.15		7.85	$	4,305
Options granted		969,663			1.37
Options exercised		(35,000	)		0.31
Options cancelled		(57,054	)		1.54
Outstanding – June 30, 2026		9,997,198		$	2.08		7.55	$	159
Exercisable – June 30, 2026		6,751,045			2.16		7.09		159

The Company estimates the fair values of stock options using the Black-Scholes option-pricing model on the date of grant. For the six months ended June 30, 2026 and 2025, the assumptions used in the Black-Scholes option pricing model, which was used to estimate the grant date fair value per option, were as follows:


	Six months ended June 30,
	2026		2025
Weighted-average Black-Scholes option pricing model assumptions:
Volatility	110.11% - 111.87%		111.06% - 121.54%
Expected term (in years)	5.25 - 6.08		5.00 - 6.08
Risk-free rate	3.69% - 4.24%		3.90% - 4.41%
Expected dividend yield		—		—
Weighted average grant date fair value per share	$0.65 - $1.23		$1.38 - $1.99

On June 15, 2026, the Board approved grants of 651,010 RSU awards to certain employees under the Company's 2022 Equity Incentive Plan in lieu of providing cash bonuses related to the settlement of the 2025 bonus program. The total number of shares subject to the RSU awards are fully vested on the date of issuance. Subsequent to the balance sheet date, the Board approved grants of RSU awards to Executives under the Company's 2022 Equity Incentive Plan in lieu of providing cash bonuses related to the settlement of the 2025 bonus program.

The following is a summary of RSU’s awards activity during the six months ended June 30, 2026:


	Six months ended June 30, 2026
	Numbers of Shares			Weighted Average Grant Date Fair value
Non-Vested at beginning of period		457,522		$	1.30
Shares granted		738,940		$	0.85
Shares vested		(738,940	)	$	0.85
Shares cancelled		(60,483	)	$	1.24
Non-vested at the end of period		397,039		$	1.24

On June 15, 2026, the Board approved a performance-based restricted stock unit (“PRSU”) award under the Company’s 2022 Equity Incentive Plan to Branislav Vajdic, the Company’s President, Founder, and Director covering 2,800,000 restricted stock units with fair value of $ 2.2 million. The PRSU granted relate to specified operational, software, product-development and clinical study milestones and are eligible to vest only if and to the extent that specified performance-based conditions and service-based conditions are satisfied, or the requirements for accelerated vesting are satisfied. The PRSU award is expensed based on the satisfaction of probability assessment of performance-based conditions and service-based conditions. As of June 30, 2026, the Company performed probability assessment of achievement of each of the performance-based conditions on a quarterly basis and based on the assessment all performance conditions related to these awards are expected to be met.

The following is a summary of stock-based compensation expense (rounded):


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Selling, general and administrative
Stock option expense	$	1,097,000	$	384,000	$	1,666,000	$	591,000
RSU expense		136,000		120,000		345,000		266,000
Total Selling, general and administrative expense		1,233,000		504,000		2,011,000		857,000
Research and development
Stock option expense		438,000		666,000		877,000		1,413,000
RSU expense		30,000		7,000		30,000		16,000
Total research and development expense		468,000		673,000		907,000		1,429,000
Total Stock Based Compensation Expense	$	1,701,000	$	1,177,000	$	2,918,000	$	2,286,000

As of June 30, 2026, total compensation cost not yet recognized related to unvested stock options, unvested RSUs, and unvested PRSUs was approximately $4.5 million, de minimis, and $2.1 million respectively, which is expected to be recognized over a weighted-average period of 2.2 years, 0.03 years, and 2.9 years respectively.