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STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION

 

14.STOCK-BASED COMPENSATION

 

As of March 31, 2026, 374,683 shares of common stock and 16,000 shares of Series B Preferred Stock are available for grant under the Equity Incentive Plan. Permissible awards include incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, RSUs, performance stock and cash-settled awards and other stock-based awards in the discretion of the Compensation Committee of the Board of Directors including unrestricted stock grants.

 

Certain equity-based RSU agreements contain a provision in which the units shall immediately vest and become converted into common shares at the rate of one share per RSU, immediately after a change in control, as defined in the award agreement.

 

Common and preferred stock RSUs

 

For the three months ended March 31, 2026 and 2025, stock compensation expense of approximately $64,000 and $108,000 was recorded, respectively. Stock compensation expense recorded is based on the value of the shares at the grant date and recognized over the service period. The portion of the stock compensation expense to be used for the payment of withholding and payroll taxes is included in accrued compensation in the condensed consolidated balance sheets. The balance of the stock compensation expense has been recorded as additional paid-in capital.

 

The following table summarizes the RSU transactions related to the common and preferred stock under the Company’s Equity Incentive Plan for the three months ended March 31, 2026 and 2025:

 

   Common Stock   Series A
Preferred Stock		   Series B
Preferred Stock		 
             
Outstanding and unvested shares at January 1, 2026   161,400    -    19,199 
Granted   -    -    - 
Vested   (55,000)   -    - 
Forfeited   -    -    - 
Outstanding and unvested shares at March 31, 2026   106,400    -    19,199 
                
Outstanding and unvested shares at January 1, 2025   242,500    -    19,199 
Granted   -    -    - 
Vested   (88,300)   -    - 
Forfeited   -    -    - 
Outstanding and unvested shares at March 31, 2025   154,200    -    19,199 

 

At March 31, 2026 and December 31, 2025 there was no liability for taxes withheld in connection with the equity awards. No amounts were paid in connection with cash-settled awards during the three months ended March 31, 2026 and 2025.

 

 

Stock-based compensation expense

 

The following table summarizes the components of share-based compensation expense for the three months ended March 31, 2026 and 2025:

   2026   2025 
   Three Months Ended March 31, 
   2026   2025 
   ($ in thousands) 
Direct operating costs  $-   $- 
General and administrative   64    105 
Research and development   -    3 
Selling and marketing   -    - 
Total stock-based compensation expense  $64   $108