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STOCK BASED COMPENSATION
 6 Months Ended
Jun. 30, 2025
Share-Based Payment Arrangement [Abstract]  
STOCK BASED COMPENSATION

 

8. STOCK BASED COMPENSATION

 

In May 2017, the Company’s shareholders approved its 2017 Stock Incentive Plan (“2017 Plan”) after its 2007 Stock Incentive Plan (“2007 Plan”) had expired in March 2017. The 2017 Plan provides for the grant of non-qualified stock options and incentive stock options to purchase shares of the Company’s common stock and for the grant of restricted and unrestricted shares of common stock and restricted stock units. The 2017 Plan provides for the issuance of 3,750,000 shares of common stock. In May 2023, the Company’s shareholders approved its 2023 Stock Incentive Plan (“2023 Plan”). The 2023 plan provides for the issuance of 2,000,000 shares of common stock. In May 2025, Company’s shareholders approved an amendment to the 2023 Plan, adding an additional 1,750,000 shares to this plan. All employees (including officers and directors who are also employees), as well as all of the nonemployee directors and other consultants, advisors and other persons who provide services to the Company are eligible to receive incentive awards under the 2017 Plan and 2023 Plan. Generally, stock options, restricted stock and restricted stock units issued under the 2017 Plan and 2023 Plan vest over a period of one to four years from the date of grant. As of June 30, 2025, approximately 2.5 million shares remain available for issuance under both available plans.

 

The following table summarizes the stock-based compensation expense recorded in the Company’s results of operations for stock options, restricted stock awards and restricted stock units granted under the Company’s incentive plans (in thousands): 

 

                    
  

Three Months Ended

June 30,

   Six Months Ended
June 30,		 
   2025   2024   2025   2024 
Research and development  $536   $398   $995   $775 
General and administrative   740    525    1,339    1,108 
Selling and marketing   2    64    (47)   128 
Total  $1,278   $987   $2,287   $2,011 

 

As of June 30, 2025, there was approximately $8.7 million of total unrecognized compensation expense related to unvested share-based compensation arrangements. This cost is expected to be recognized over a weighted-average period of 2.2 years.

 

Stock Options:

 

The weighted average grant date fair value per share of the options granted under the Company’s Plans was $5.00 for the three and six months ended June 30, 2025. The weighted average grant date fair value per share of the options granted under the Company’s Plans was $3.92 and $4.97 for the three and six months ended June 30, 2024, respectively. The following table summarizes stock option activity during the six months ended June 30, 2025 (in thousands except exercise prices and contractual terms):

 

                    
  

Number of

Shares

  

Weighted-

Average

Exercise

Prices per Share

  

Weighted-
Average

Remaining

Contractual

Term (In Years)

   Intrinsic
Value		 
Outstanding at January 1, 2025   3,793   $6.64           
Granted   2   $5.78           
Exercised   (173)  $5.23           
Forfeited   (167)  $3.50           
Expired   (132)  $5.99           
Outstanding at June 30, 2025   3,323   $6.90    3.89   $881 
Exercisable at June 30, 2025   2,870   $6.89    3.20   $830 

 

Restricted Stock Awards:

 

The Company has issued restricted stock awards to employees, directors and consultants and estimates the fair value based on the closing price on the day of grant. There were no restricted stock awards issued in the six months ended June 30, 2025. The following table summarizes all restricted stock award activity during the six months ended June 30, 2025 (in thousands except per share data):

 

          
  

Number of

Shares

  

Weighted-Average

Grant Date Fair Value per Share

 
Outstanding at January 1, 2025   469   $7.17 
Vested   (151)  $7.01 
Outstanding non-vested shares at June 30, 2025   318   $7.24 

 

Restricted Stock Units:

 

Beginning in January 2025, the Company began issuing restricted stock units (“RSUs”) to employees, directors and consultants and a portion of the RSUs issued are subject to time-based vesting and a portion are subject to performance-based vesting criteria. The fair value of time-based RSUs is based on the closing price on the day of grant and they vest over zero to four years. Awards of performance-based restricted stock units by the Company have a performance period of one, two and three years with the vesting of each award tranche dependent on the Company’s Total Shareholder Return (“TSR”) relative to the TSR of companies in the Russell 2000 Index over that tranche’s performance period. The fair value for performance-based awards is fixed at the grant date using a Monte Carlo simulation and the amount of compensation expense is not adjusted during the performance period regardless of changes in the level of TSR achievement.

 

The weighted average grant date fair value per share of the RSUs granted was $7.75. The following table summarizes all restricted stock unit activity during the six months ended June 30, 2025 (in thousands except per share prices data):

 

                    
   Time-Based
Units		   Performance-
Based Units		   Total Restricted Stock Units   Weighted-Average Grant Date Fair Value per Share 
Outstanding at January 1, 2025   –    –    –   $– 
Granted   471    251    722   $7.75 
Vested   (27)   –    (27)  $6.33 
Forfeited   (30)   (30)   (60)  $8.21 
Outstanding at June 30, 2025   414    221    635   $7.76