In 2008, the Company adopted a Stock Incentive Plan. This stock incentive plan was amended and restated effective as of May 14, 2024 and further amended on May 14, 2025 and May 13, 2026 (as amended from time to time, the “Plan”). The Plan provides that up to 6,200,000 shares of the Company’s common stock, par value $0.01 per share (“Common Stock”) shall be allocated for issuance to directors, officers, employees and consultants of the Company. Grants under the Plan may be made in the form of stock options, stock appreciation rights, performance share awards, restricted stock awards, stock awards or restricted stock units. As of September 30, 2026, 718,000 shares remained available for future grant under the Plan.

Of the restricted stock granted during the nine months ended September 30, 2026, 100,314 shares vested immediately upon grant but are subject to transfer restrictions that prohibit disposition until March 30, 2028, subject to immediate lapse of any restriction due to (i) separation from the Company for any reason, (ii) death, or (iii) disability. Because these shares vested immediately, they did not result in additional stock-based compensation expense, but rather, they were issued in settlement of previously accrued cash compensation. The remaining restricted stock awards and the restricted stock units granted in the first and second quarters vest one year from the grant date. The 70,000 restricted stock units granted in the third quarter of 2026 vest in three equal annual installments beginning on the first anniversary of the grant date.

Stock-based compensation expense is included in selling, general and administrative expenses in the accompanying Condensed Consolidated Statements of Operations.

The Company’s 2019 Employee Stock Purchase Plan (the “ESPP”) was terminated by the Board of Directors on February 16, 2026, effective July 1, 2026, following completion of the offering period ended June 30, 2026. No further offering periods under the ESPP will commence. Under the ESPP, eligible employees could purchase common stock at a 15% discount to the lower of the fair market value on the first or last day of each six-month offering period; the fair value of the purchase rights was estimated using the Black-Scholes option pricing model. During the nine months ended September 30, 2026 and 2025, 4,381 shares and 11,483 shares were issued under the ESPP at $5.69 and $6.09 per share, respectively. No shares were issued during the three months ended September 30, 2026 or 2025. ESPP-related stock-based compensation expense totaled zero dollars and $8,000 for the three months ended September 30, 2026 and 2025, respectively, and $10,000 and $50,000 for the nine months ended September 30, 2026 and 2025, respectively, and is included in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.