v3.26.1
Stockholders’ (Deficit) Equity
 6 Months Ended
Jun. 30, 2026
Equity [Abstract]  
Stockholders’ (Deficit) Equity

Note 6. Stockholders’ (Deficit) Equity

 

The following are changes in stockholders’ (deficit) equity for the six months ended June 30, 2026 and 2025:

 

   Shares   Amount   Capital   (Deficit)   Total 
   Common Stock   

Additional

paid in

   Accumulated     
   Shares   Amount   Capital   (Deficit)   Total 
                     
Balance December 31, 2024   14,746,172   $       -   $64,199,000   $(63,621,000)  $578,000 
Issuance of common stock for equity compensation, net of shares repurchased for income tax withholding   141,296    -    (161,000)   -    (161,000)
Equity-based compensation expense   -    -    297,000    -    297,000 
Registered issuance of common stock   1,052,793    -    2,974,000    -    2,974,000 
Net loss   -    -    -    (1,641,000)   (1,641,000)
Balance June 30, 2025   15,940,261   $-   $67,309,000   $(65,262,000)  $2,047,000 

 

   Common Stock   

Additional

paid in

   Accumulated     
   Shares   Amount   Capital   (Deficit)   Total 
                     
Balance December 31, 2025   15,969,281$         -   $67,645,000   $(66,315,000)  $1,330,000 
Issuance of common stock for equity compensation, net of shares repurchased for income tax withholding   103,307    -    (55,000)   -    (55,000)
Equity-based compensation expense   -    -    256,000    -    256,000 
Shares issued in settlement of former Arps shareholder and manager notes   135,572    -    420,000    -    420,000 
Issuance of detachable warrants   -    -    487,000         487,000 
Net loss   -    -    -    (2,522,000)   (2,522,000)
Balance June 30, 2026   16,208,160$   -   $68,753,000   $(68,837,000)  $(84,000)

 

Warrants

 

In association with the issuance of convertible notes (Note 4), 2,375,155 warrants were issued at a weighted average exercise price of $3.20 per share and remain outstanding as of June 30, 2026. The weighted average remaining term of the warrants is 3.7 years as of June 30, 2026.

 

 

Equity Incentive Plan

 

As of June 30, 2026, the Company has $371,000 of total unrecognized share-based compensation expense relative to unvested options, stock awards and stock units, which is expected to be recognized over the remaining weighted average period of 2.6 years.

 

Stock Options

 

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

 

   Number of Options   Weighted average exercise price per share   Remaining term in years 
Outstanding on December 31, 2025   763,002   $      4.60         5.3 
Granted   29,030   $2.62    8.0 
Forfeited   (22,831)  $2.53      
Outstanding on June 30, 2026   769,201   $4.59    4.8 
                
Exercisable, June 30, 2026   616,932   $5.06    3.9 

 

The fair value of the options issued was calculated using the Black-Scholes option pricing model, based on the following:

 

   2026 
Expected term (in years)   8.0 
Expected volatility   99.8%
Risk-free interest rate   4.2%
Expected dividends  $- 
Weighted average grant date fair value per share  $2.37 

 

Restricted Stock

 

The following is a summary of restricted stock award and restricted stock unit activity for the six months ended June 30, 2026:

 

  

Number of

shares

   Weighted average grant date fair value 
Unvested at December 31, 2025   148,554   $2.75 
Granted   24,251   $2.41 
Vested   (67,622)  $2.49 
Forfeited   -   $- 
Unvested at June 30, 2026   105,183   $2.84 

 

Performance Share Units

 

From 2023 to 2025, the Company issued performance share units (“PSUs”) that represented shares potentially issuable based upon Company and individual performance in the years of issuance.

 

 

The following table summarizes the activity for the Company’s unvested PSUs for the six months ended June 30, 2026:

 

   Number of shares   Weighted average grant date fair value 
Unvested at December 31, 2025   66,743   $      2.70 
Vested   (55,211)  $2.63 
Unvested June 30, 2026   11,532   $1.20