15. Equity Incentive Plans and Share-Based Payments

2021 Omnibus Incentive Plan

In July 2021, the Board adopted, and our stockholders approved, the 2021 Plan, under which the maximum contractual term for stock options is 10 years. In June 2026, our stockholders approved the amendment and restatement of the 2021 Plan, including to increase the total number of shares of common stock authorized from 3,750,000 to 8,750,000. As of June 30, 2026, there were 5,178,852 shares available for future awards under the amended 2021 Plan.

Non-qualified stock options

The Company recognizes the grant-date fair value of share-based awards granted as compensation expense on a straight-line basis over the requisite service period. The fair value of stock options is estimated at the time of grant using either a binomial lattice pricing model, or the BSM model for ‘plain vanilla’ options, each of which requires the use of inputs and assumptions such as the fair value of the underlying stock, exercise price of the option, expected term, risk-free interest rate, expected volatility and dividend yield. The Company elects to account for forfeitures as they occur.

The assumptions and key inputs used in the BSM model for the stock options granted during the six months ended June 30, 2026 were as follows: exercise price of $0.78 to $0.90, risk-free rate of 3.7% to 3.8%, volatility of 100%, a dividend yield of 0.0% and expected term of 5.27 years to 6 years. There were no equity grants awarded during the six months ended June 30, 2025.

Share-based compensation expense of $0.2 million and $0.4 million for the three and six months ended June 30, 2026, respectively, and $0.1 million and $0.3 million for the three and six months ended June 30, 2025, respectively, was recorded in selling, general and administrative expenses, with a negligible amount recorded in research and development in the accompanying condensed consolidated statements of operations.

Options outstanding and exercisable under the employee share option plan as of June 30, 2026 and a summary of option activity during the six months then ended is presented below.

 Schedule of Stock Option Activity

As of June 30, 2026, there was $0.8 million of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 1.30 years.

Share-Based Compensation (RSUs)

RSU-related share-based compensation expense of $0.1 million and $0.2 million for the three and six months ended June 30, 2026, respectively, and $0.1 million for both the three and six months ended June 30, 2025 was recorded in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.

 Schedule of Restricted Stock Units

As of June 30, 2026, there was $0.3 million of unrecognized compensation related to unvested RSUs, which is expected to be recognized over a period of 1.41 years.