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Note 14 - Equity Incentive Plan

12 Months Ended

Dec. 31, 2025

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE 14 – EQUITY INCENTIVE PLAN

In August 2017, the Company approved and adopted the 2017 Equity Award Plan (the “2017 Plan”). The 2017 Plan permits the granting of stock options, stock appreciation rights, restricted and unrestricted stock awards, phantom stock, performance awards and other stock-based awards for the purpose of attracting and retaining quality employees, directors and consultants. Maximum awards available under the 2017 Plan were initially set at 3,000,000 shares. In October 2021, the Company announced it had registered an additional 4,368,733 shares of its common stock available for issuance under the 2017 Plan.

On April 29, 2024, the Company filed a registration statement on Form S-8 solely to register an additional 7,912,216 shares of its common stock available for issuance under the 2017 Plan. This increase was approved by the Company’s Board of Directors on March 22, 2024, and by the Company’s stockholders on April 18, 2024 at the Company’s annual meeting.

Stock-based compensation expense included in the consolidated statements of operations was as follows (dollars in thousands):

		*Year ended December 31,*
		*2025*				*2024*
Cost of revenue, excluding depreciation and amortization		$	5			$	13
General and administrative expenses			1,907				3,221
Selling and marketing expenses			381				321
Research and development expenses			615				1,274
Total stock-based compensation expense		$	2,908			$	4,829

Stock Options

Stock options granted under the 2017 Plan may be either incentive stock options (“ISOs”) or non-qualified stock options (“NSOs”). ISOs may be granted to employees and NSOs may be granted to employees, directors, or consultants. Stock options are granted at exercise prices as determined by the Board of Directors. The vesting period is generally three years with a contractual term of ten years.

There was no stock compensation expense related to stock options for the years ended December 31, 2025 and 2024.

A summary of stock option activity under the Company’s 2017 Plan for the years ended December 31, 2025 and 2024 is as follows:

		*Number of Shares Subject to Option*				*Weighted Average Exercise Price*				*Weighted Average Remaining Contractual Term (Years)*				*Aggregate Intrinsic Value*
Outstanding balance at January 1, 2024			688,841			$	1.20				3.70			$	1,478,000
Exercised			(198,095	)			1.34
Forfeited			-				-
Expired			(3,880	)			3.81
Outstanding balance at December 31, 2024			486,866			$	1.13				3.76			$	264,000
Exercised			(63,832	)			1.14
Forfeited			-				-
Expired			-				-
Outstanding and exercisable balance at December 31, 2025			423,034			$	1.12				2.63			$	180,000

There were no options granted in the years ended December 31, 2025 and 2024. No shares became vested after grant during the years ended December 31, 2025 and 2024.

As of December 31, 2025 and 2024, there was no unrecognized stock compensation expense related to stock options granted under the 2017 Plan.

Restricted Stock Units

Stock compensation expense related to RSU’s for the years ended December 31, 2025 and 2024 was $2,908,000 and $4,829,000, respectively, and was presented as part of operating expenses in the accompanying consolidated statements of operations.

A summary of RSU activity under the Company’s 2017 Plan for years ended December 31, 2025 and 2024 is as follows:

		*Number of Shares*				*Weighted Average Unit Price*				*Weighted Average Remaining Contractual Term (Years)*
Outstanding balance at January 1, 2024			1,747,458			$	3.79				1.39
Granted			5,556,649				1.17				1.15
Vested			(1,044,280	)			4.29				0.41
Forfeited			(483,401	)			1.86				1.53
Outstanding balance at December 31, 2024			5,776,426			$	1.34				1.09
Granted			234,950				1.41				2.64
Vested			(3,902,812	)			1.42				0.09
Forfeited			(1,454,424	)			1.02				0.36
Outstanding balance at December 31, 2025			654,140			$	1.57				1.53

All RSUs granted vest upon the satisfaction of a service-based vesting condition.

As of December 31, 2025, there was $753,000 of unrecognized stock compensation expense related to unvested RSUs granted under the 2017 Plan that will be recognized over an average remaining period of 1.53 years.