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Note 15 - Share-based Compensation

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

Note 15. Share-Based Compensation

Equity Plans

The Company’s board of directors and stockholders approved the following equity plans:

	●	the 2021 Equity Incentive Plan ("2021 Plan")
	●	the 2023 Equity Inducement Plan ("Inducement Plan")

The Company has issued stock options, restricted stock awards ("RSAs") and restricted stock units ("RSUs") to employees, consultants and non-employee directors. Stock option awards generally vest over a four-year period and have a maximum term of ten years. Stock options under these plans have been granted with an exercise price equal to the fair market value on the date of the grant. Nonqualified and Incentive Stock Options, RSAs and RSUs may be granted from these plans.

Performance Based Incentive Plan

Starting in 2021, certain senior executives were granted performance stock units ("PSUs") under our Amended and Restated 2021 Equity Incentive Plan ("2021 Plan"), which generally vest over a three-year period subject to achievement of certain pre-established performance metrics. The number of shares of common stock that would ultimately be issued to settle PSUs granted ranged from 0% to 200% of the target number of shares granted. We estimate the fair value of the PSUs on the date of grant using a Monte Carlo simulation model, with stock-based compensation expense recognized ratably over the applicable three-year performance period. The Company recognized stock-based compensation expense for the PSUs for the three months ended September 30, 2025 and 2024 of $1.2 million and $3.8 million, respectively. The Company recognized stock-based compensation expense for the PSUs for the nine months ended September 30, 2025 and 2024 of $3.3 million and $5.8 million, respectively.

The following is a summary of PSU activity for the nine months ended September 30, 2025:

						*Weighted*
						*Average*				*Weighted*				*Aggregate*
		*Number of*				*Exercise*				*Average*				*Intrinsic*
		*shares*				*Price*				*Fair Value*				*Value*
		(in thousands, except price data and Contractual Life)
Outstanding at January 1, 2025			1,447				—			$	7.72			$	53,347
Granted			719				—				6.94				8,851
Exercised			(978	)		$	14.76				2.48				14,431
Forfeited			—				—				—				—
Outstanding, September 30, 2025			1,189				—				11.55				30,541
Vested and expected to vest			1,189				—			$	11.55			$	30,541

As of September 30, 2025, there was $6.2 million of unrecognized stock-based compensation expense related to outstanding PSUs, which expense is expected to be recognized over 1.9 years.

Restricted Stock Units

The following is a summary of RSU activity:

						*Weighted*
						*Average Share*				*Weighted*				*Aggregate*
		*Number of*				*Price on Date*				*Average Fair*				*Intrinsic*
		*shares*				*of Release*				*Value*				*Value*
		(in thousands, except price data)
Outstanding, January 1, 2025			2,231				—			$	6.04			$	82,243
Granted			489				—				12.38				6,055
Released			(940	)		$	6.22				22.59				21
Cancelled/Forfeited			(40	)			—				5.91				1,040
Outstanding, September 30, 2025			1,074				—				7.73				45,124
Vested and expected to vest			1,074				—			$	7.73			$	45,124

As of September 30, 2025, there was $12.1 million of unrecognized compensation expense related to these RSUs. This expense is expected to be recognized over 2.3 years.

Share-Based Compensation

Employee share-based compensation expenses recognized for the periods indicated (in thousands):

		*Three months ended*								*Nine months ended*
		*September 30,*								*September 30,*
		*2025*				*2024*				*2025*				*2024*
Share-based compensation - by expense types
Cost of goods sold		$	87			$	116			$	264			$	355
Research and development			293				356				900				1,114
Sales and marketing			275				334				1,097				1,160
General and administrative			2,460				2,137				6,580				9,212
Total share-based compensation expense		$	3,116			$	2,943			$	8,842			$	11,841