Quarterly report [Sections 13 or 15(d)]

Note 4 - Stockholders' Equity

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Note 4 - Stockholders' Equity
 9 Months Ended
Sep. 30, 2026
Notes to Financial Statements  
Equity [Text Block]

4. STOCKHOLDERS’ EQUITY

 

STOCK-BASED COMPENSATION

 

The Company recognized stock-based compensation expense related to common stock, stock options and warrants for the three and nine months ended September 30, 2026 of $505 and $3,109, respectively, which is included within compensation expense on the condensed consolidated statements of operations. The Company recognized stock-based compensation expense related to common stock, stock options and warrants for the three and nine months ended September 30, 2025 of $433 and $2,186, respectively, which is included within compensation expense on the condensed consolidated statements of operations. As of  September 30, 2026, there was $3,540 of unrecognized stock-based compensation expense that will be recognized over the weighted average remaining vesting period of 3.03 years.

 

RESTRICTED STOCK UNITS  

 

The Company grants Restricted Stock Units (“RSUs”) to employees, executives, and members of the Board of Directors under the Company’s equity incentive plan. RSUs represent a right to receive shares of the Company’s common stock upon vesting and have no exercise price. Upon vesting, the RSUs automatically settle and convert into unrestricted shares of the Company’s common stock. Service-based RSUs vest ratably over service periods of one to three years from the date of grant, subject to the recipient’s continued service with the Company. The fair value of service-based RSUs is determined based on the closing price of the Company’s common stock on the date of grant.

 

As approved by the stockholders of the Registrant at its 2026 Annual Meeting of Stockholders held on June 30, 2026, the Company has 10,000,000 additional shares of common stock, par value $0.001 per share that can be issued under its 2018 Incentive Compensation Plan, as amended (the “Incentive Plan”) bringing the total amount of shares that may be issued under the Incentive Plan to 17,000,000 shares of common stock. 

 

During the third quarter of 2026, the Company also granted performance-based restricted stock units (“PSUs”) under the same plan to certain employees. Each PSU represents a right to receive shares of common stock upon achievement of a specified performance or market condition and the recipient’s continued service through the vesting date. Expense related to PSUs is recognized on a straight-line basis over the requisite service period when achievement is probable, with that probability reassessed each reporting period. PSUs with a market condition vest based on the estimated date the Company’s share price would reach the target. Other PSUs vest based on the estimated date the stated targets are estimated to be achieved. Their grant-date fair value is estimated using a Monte Carlo simulation, and expense is recognized on a straight-line basis over the requisite service period whether or not the market condition is achieved, provided the recipient remains in service.

 

A summary of the RSU activity during the nine months ended September 30, 2026 is presented below:

 

 

 

 

 

​

 

Weighted

 

 

 

 

 

​

 

Average

 

 

 

Number of

 

 

Grant Date

 

 

 

Shares

 

 

Fair Value

 

Outstanding, January 1, 2026

 

 

1,474,443

 

 

 $

1.57

 

Granted

 

 

9,845,399

 

 

 

0.59

 

Vested

 

 

(3,184,765

)

 

 

0.95

 

Cancelled/forfeited/expired

 

 

(523,798

)

 

 

1.18

 

Outstanding, September 30, 2026

 

 

7,611,279

 

 

 $

0.59

 

 

As of  September 30, 2026, 1,035,485 of RSUs that vested during the nine months ended September 30, 2026 remain unissued.