v3.26.1
Note 9 - Stock-based Compensation
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

9. Stock-Based Compensation

 

Under the Company’s 2021 Incentive Plan (the "Plan"), stock-based compensation may be issued to employees and non-employee directors. At the Company's 2026 Annual Meeting of Stockholders held on May 12, 2026, stockholders approved an amendment to the Plan to increase the number of shares of common stock authorized for issuance thereunder by 1,500,000 shares. As of June 30, 2026, 2,276,512 shares remained available for future issuance under the Plan.

 

The following table summarizes stock-based compensation expense, which includes expenses related to awards granted under the Plan for the periods indicated:

  

Three Months Ended June 30,

 

Six Months Ended June 30,

  

2026

 

2025

 

2026

 

2025

Restricted stock awards

 $146  $17  $538  $26 

Stock options

  14   —   310   — 

Total

 $160  $17  $848  $26 

 

Restricted Stock Awards

 

The following table summarizes restricted stock awards activity for the period indicated:

  

Number of Shares

 

Weighted Average Grant Date Fair Value

 

Aggregate Grant Date Fair Value

Balance as of December 31, 2025

  36,274  $5.79  $210 

Granted

  162,402   6.48   1,052 

Vested

  (60,361)  (6.31)  (381)

Canceled

  —   —   — 

Balance as of June 30, 2026

  138,315  $6.37  $881 

 

As of  June 30, 2026, there was $626 of total unrecognized compensation cost related to unvested shares granted. The cost is expected to be recognized over a weighted average period of 1.5 years.

 

 

 

Stock Options

 

The Company estimates the fair value of stock options on the grant date using the Black-Scholes-Merton option-pricing model. The Black-Scholes-Merton option-pricing model requires subjective assumptions, including future stock price volatility and expected time to exercise. Option awards are generally granted with an exercise price equal to the market price of the Company's stock on the grant date.

 

The following table presents the weighted-average assumptions for stock options granted:

  

Three Months Ended June 30,

 

Six Months Ended June 30,

  

2026

 

2025

 

2026

 

2025

Expected volatility (a)

  —   —   45.9%  — 

Expected annual dividend yield (b)

  —   —   0.0%  — 

Risk-free interest rate (c)

  —   —   3.6%  — 

Expected term, in years (d)

  —   —   2.7   — 

(a)

The expected volatility is based on the implied volatility of the Company's historical stock price data over the expected term.

(b)

The yield is 0.0% as the Company is not expected to pay a dividend.

(c)

The risk-free rate is based on the average U.S. Treasury zero-coupon rate over the four days prior to the grant date. We selected the risk-free rate that is commensurate with the length of the expected term as of the grant date, using interpolation where necessary.

(d)

The expected term is the simple average of the vesting periods and the contractual term.

 

The following table provides a rollforward of stock option activity for the six months ended June 30, 2026:

  

Number of Options Outstanding

 

Weighted Average Exercise Price

 

Weighted Average Grant Date Fair Value

 

Weighted Average Remaining Term (in years)

 

Aggregate Intrinsic Value

Outstanding as of December 31, 2025

  —  $—  $—   —  $— 

Granted

  200,000   7.02   1.87         

Exercised

  —   —   —         

Forfeited

  —   —   —         

Outstanding as of June 30, 2026

  200,000  $7.02  $1.87   4.8  $53 

Exercisable as of June 30, 2026

  160,000  $7.18  $2.33   4.8  $32