SHARE-BASED PAYMENTS

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Abstract]

10. SHARE-BASED PAYMENTS

The Company maintains a long-term incentive plan, the Second Amended and Restated 2018 Equity Incentive Plan (collectively with all amendments referred to as the "2018 Plan"), for employees, non-employee members of its Board of Directors (the "Board"), and consultants. The 2018 Plan, which is administered by the Board, allows the Company to grant equity-based compensation awards, including stock options, stock appreciation rights, performance share units, restricted stock units, restricted stock awards, common stock warrants, or a combination of awards (collectively, "share-based awards"). The Board also has broad authority to determine the terms and conditions of each option or other kind of equity award, adopt, amend and rescind rules and regulations for the administration of the 2018 Plan and amend or modify outstanding options, grants and awards.

The Company accounts for share-based payments through the measurement and recognition of compensation expense for share-based awards, primarily restricted stock units, made to employees, non-employee members of the Board, and consultants of the Company. The Company recorded share-based compensation expense of $0.3 million and $0.5 million in the three months ended March 31, 2026 and 2025, respectively.

Restricted Stock Units

The Company issues restricted stock units to eligible employees, which are subject to forfeiture until the end of an applicable vesting period. The awards generally vest annually or biannually over three to five years following the date of grant, subject to the employee's continuing employment as of that date. Restricted stock units are valued using the market value on the grant date.

Restricted stock unit activity for the three months ended March 31, 2026 is presented in the following table:


	Units	Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2025	1,045,584	$	2.01
Granted	80,000	$	1.27

Forfeited	(25,000)	$	3.35
Nonvested as of March 31, 2026	1,100,584	$	1.92

During the three months ended March 31, 2025, 244 thousand restricted stock units were granted at a weighted average grant date fair value of $1.26. As of March 31, 2026, the Company had approximately $1.5 million of unrecognized share-based compensation related to restricted stock units, which is expected to be recognized over a weighted average period of approximately 1.8 years.