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Note 5 - Stock-based Compensation
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

5.

STOCK-BASED COMPENSATION

 

At September 30, 2024, we had two stock-based compensation plans in effect. We record compensation cost related to unvested stock awards by recognizing the unamortized grant date fair value on a straight-line basis over the vesting periods of each award. We have estimated forfeiture rates based on our historical experience. Stock option compensation expense for the three and nine month periods ended September 30, 2024 and 2023 has been recognized as a component of general and administrative expenses and development expenses in the accompanying Consolidated Financial Statements. We recorded $274,000 and $0 of stock-based compensation expense for the three months ended September 30, 2024 and 2023, respectively, and $859,000 and $150,000 for the nine months ended September 30, 2024 and 2023, respectively.

 

Stock Options

 

As of September 30, 2024, there was no unrecognized compensation cost related to stock options. There were no options exercised during the three and nine months ended September 30, 2024. No options expired unexercised during the quarter. The following table summarizes options as of September 30, 2024:

 

Options Outstanding and Exercisable:

                          

   Range of
Exercise Price

  

Number
Outstanding

    

Wgt. Avg.

Contractual
Life Remaining

(in years)

    

Wgt. Avg.
Exercise Price

    

Aggregate
Intrinsic Value

  

$3.50

 - $3.86     13,000       2.5     $ 3.75     $ 140,020  

$7.80

         8,000       3.7     $ 7.80     $ 53,760  

$19.99

         30,000       4.3     $ 19.99     $ -  

$39.11

         8,000       4.7     $ 39.11     $ -  

$3.50

 - $39.11     59,000       3.9     $ 17.35     $ 193,780  

 

The estimated fair value of options granted is calculated using the Black-Scholes option pricing model with assumptions as previously disclosed in our 2023 Form 10-K.

 

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the third quarter of 2024 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2024. The amount of aggregate intrinsic value will change based on the market value of the Company’s stock.

 

Restricted Stock Units

 

Restricted Stock Units, or RSUs, generally vest at the end of a three-year vesting period. A summary of the Company’s RSU activity was as follows:

 

   

Number of Restricted

Stock Units

    

Weighted-average grant date fair value per share

  

Balance as of December 31, 2023

     -     $ -  

Granted

     287,485       12.34  

Vested

     -       -  

Canceled and forfeited

     (2,473 )     12.34  

Balance as of September 30, 2024

     285,012     $ 12.34  

 

As of September 30, 2024, unrecognized compensation costs related to unvested RSUs was $2.6 million, which we expect to recognize over a weighted-average period of 2.4 years. In October 2024, we granted an additional 198,912 RSUs to long-term employees at a grant date fair value of $2.6 million that vest at the end of a three-year vesting period.