In September 2021, the Company’s board of directors approved the adoption of the 2021 Equity Incentive Plan, under which the Company is authorized to issue incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, other stock awards and performance awards that may be settled in cash, stock, or other property. On  October 10, 2025, the Company’s stockholders approved an amendment to the Company’s 2021 Equity Incentive Plan (as amended, the “Plan”) to (i) increase the aggregate number of shares of Common Stock available under the Plan to a total of 360,000 shares, (ii) include warrant as a type of awards issuable under the Plan, and (iii) to ratify the 2021 Equity Incentive Plan.

The aggregate number of shares of common stock authorized for issuance under the Plan is 360,000 shares, which may be increased through an amendment to the Plan adopted by the board of directors. The number of shares authorized is subject to standard adjustments in the event of a stock split, stock dividend or other extraordinary dividend, or other similar change in the Company’s common stock or capital structure. Awards that expire or are cancelled generally become available for issuance again under the Plan. Awards have a maximum term of ten years from the grant date and vest over four years, but may vest over varying periods, as specified by the Company’s board of directors for each grant.

A summary of stock option transactions for the six months ended June 30, 2026, is as follows:

As of June 30, 2026, there were 251,738 options outstanding, with a weighted average exercise price of $17.30, a weighted average remaining term of 8.19 years, and an aggregate intrinsic value of $1.0 million. Of these 232,643 were vested, with a weighted average exercise price of $12.71, a weighted average remaining term of 8.17 years and an aggregate intrinsic value of $1.0 million. The options vest over a period of 4 years, except for the May 2026 Options (as defined below), which vest immediately.

As of June 30, 2025, there were 156,646 options outstanding, with a weighted average exercise price of $32.50, a weighted average remaining term of 7.59 years, and an aggregate intrinsic value of $6.5 million. Of these, 93,133 were vested, with a weighted average exercise price of $20.50, a weighted average remaining term of 7.0 years and an aggregate intrinsic value of $4.7 million. The options vest over a period of 4 years.

In February 2026, the Company granted 329 stock options with an exercise price of $84.50 and a term of 10 years. In March 2026, the Company granted 4,000 stock options with an exercise price of $54.00 and a term of 10 years (the "May 2026 Options"). In May 2026, the Company granted 160,000 stock options with an exercises price of $0.005 and a term of 10 years. The February 2026 and March 2026 options vest over a period of 4 years. The May 2026 Options immediately vest and are fully expensed on issuance in the amount of $1.2 million. The Company measures the fair value of all stock-based awards on the grant date and records the fair value of these awards to compensation expense over the vesting period. The fair market value of the February, March, and May 2026 stock-based awards was determined using the Black-Scholes option pricing model which used the following assumptions:

A summary of stock option transactions is as follows (in thousands):

As of June 30, 2026, the unrecognized stock-based compensation cost related to outstanding stock options that are expected to vest was $0.9 million, which the Company expects to recognize over an estimated weighted average period of 2.78 years.

As of June 30, 2025, the unrecognized stock-based compensation cost related to outstanding stock options that are expected to vest was $2.2 million, which the Company expects to recognize over an estimated weighted average period of 2.97 years.