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STOCKHOLDERS’ EQUITY | 12 Months Ended
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Dec. 31, 2024
Equity [Abstract] |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Series A Convertible Preferred Stock In January 1997, the Board of Directors authorized the creation of 30,000 class of Series A Convertible Preferred Stock with a par value of $0.01. The Series A Convertible Preferred Stock is convertible into an equal number of common shares at the holder’s option, subject to adjustment for anti-dilution. The holders of Series A Convertible Preferred Stock are entitled to receive dividends as and if declared by the Board of Directors. In the event of liquidation or dissolution of the Company, the holders of Series A Convertible Preferred Stock are entitled to receive all accrued dividends, if applicable, plus the liquidation price of $1.00 per share. As of December 31, 2024, and 2023, there were no outstanding shares of Series A Convertible Preferred Stock. Stock-based Compensation To retain and attract qualified personnel necessary for the success of the Company, the Company adopted the 2015 Omnibus Incentive Plan (the “Plan”) covering up to 5,236,000 of the Company’s common shares, pursuant to which officers, directors, key employees and consultants to the Company are eligible to receive incentive stock options, nonqualified stock options and restricted stock units. All the equity compensation plans prior to the Company’s 2015 Omnibus Incentive Plan have been closed. The Compensation Committee of the Board of Directors administers this Plan and determines the terms and conditions of stock options granted, including the exercise price. The Plan generally provides that all stock options will expire within ten years of the date of grant. Incentive stock options granted under this Plan must be granted at an exercise price that is not less than the fair market value per share at the date of the grant and the exercise price must not be less than 110% of the fair market value per share at the date of the grant for grants to persons owning more than 10% of the voting stock of the Company. The Plan also entitles non-employee directors to receive grants of non-qualified stock options as approved by the Board of Directors. The Company uses the Black-Scholes option pricing model to value the options on the grant date. The table below presents the weighted average expected life of the stock options in years. The Company uses the simplified method for all stock options to estimate the expected life of the option and assumes that stock options will be exercised evenly over the period from vesting until the awards expire. Volatility is determined using changes in historical stock prices. The interest rate for periods within the expected life of the award is based on U.S. Treasury yield curve in effect on the grant date. Options, generally, vest from one year to four years. The compensation expense is recognized over the requisite service period on a straight-line basis, reduced by forfeitures as they occur. Certain option awards are classified as liability awards. The fair values of these awards are determined at each reporting date utilizing a Black-Scholes option pricing model, and the associated compensation expense (credit) is recorded at each reporting period is recorded. The Company recorded $(4) and $(50) of credits to stock-based compensation expense in the years ended December 31, 2024 and 2023, respectively, as a result of the change in fair value of these awards. The fair value of the Company’s stock options granted in 2024 that are being classified as equity awards were estimated using the Black-Scholes option pricing model with the following assumptions and weighted average fair values:
| Year Ended December 31, 2024
Valuation assumptions: |
Grant price | $1.78 – $3.40
Exercise price | $1.78 – $3.40
Expected dividend yield | 0 | %
Expected volatility | 70.68% – 85.82%
Expected life (in years) | 3.37 – 4.37
Risk-free interest rate | 3.70% – 4.40%
Stock option activity during the periods indicated below was as follows:
| Number of Shares Subject to Issuance |  | Weighted- average Exercise Price |  | Weighted- average Remaining Contractual Term |  | Aggregate Intrinsic Value
Outstanding at December 31, 2022 | 1,120,244 |  | $ | 3.68 |  |  | 3.50 years |  | $ | 84 |
Granted | 627,507 |  | 2.91 |  |  |  |  |
Forfeited | (595,037) |  | 4.05 |  |  |  |  |
Outstanding at December 31, 2023 | 1,152,714 |  | $ | 3.07 |  |  | 3.18 years |  | $ | 38 |
Granted | 650,978 |  | 2.00 |  |  |  |  |
Forfeited | (472,713) |  | 2.42 |  |  |  |  |
Exercised | (179,875) |  | 1.72 |  |  |  |  |
Outstanding at December 31, 2024 | 1,151,104 |  | $ | 2.94 |  |  | 3.88 years |  | $ | 536 |
Exercisable at December 31, 2024 | 434,877 |  | $ | 4.07 |  |  | 2.64 years |  | $ | 115 |
The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in- the-money options) that would have been received by the option holders had they all exercised their options on December 31, 2024. This amount changes based upon the fair market value of the Company’s stock. The following is a summary of stock options as of December 31, 2024:
|  | Options Outstanding |  | Options Exercisable
Range of Exercise Prices |  | Number of Options |  | Weighted- average Remaining Life |  | Weighted- average Exercise Price |  | Number of Options |  | Weighted- average Exercise Price
$1.81 to $2.52 |  | 726,877 |  | 4.82 years |  | $ | 2.09 |  |  | 189,208 |  | $ | 2.03 |
$2.53 to $11.50 |  | 424,227 |  | 2.74 years |  | $ | 4.39 |  |  | 245,669 |  | $ | 5.46 |
|  | 1,151,104 |  | 3.98 years |  | $ | 2.94 |  |  | 434,877 |  | $ | 3.97 |
The weighted-average fair value of the options granted during the year ended December 31, 2024 was $2.94. All stock options were issued with an exercise price that is equal or above the fair market value of the Company’s common stock on the date of grant. The amount of unrecognized expense of the options for the year ended December 31, 2024 was $726. Restricted Stock Units The Company periodically issues Restricted Stock Units (“RSUs”) which are equity-based instruments that may be settled in shares of common stock of the Company. The Company issues RSUs to certain directors as compensation which vest with the passage of time. The vesting of all RSUs is contingent on continued board and employment services. The compensation expense incurred by the Company for RSUs is based on the closing market price of the Company’s common stock on the date of grant, is amortized on a straight-line basis over the requisite service period and charged to operating expenses with a corresponding increase to additional paid-in capital, reduced by forfeitures when they occur. The amount of unrecognized expense of the RSUs for the year ended December 31, 2024 was $0. Restricted stock unit activity during the periods indicated below is as follows:
| Number of Shares |  | Weighted Average Grant Date Fair Value
Outstanding at December 31, 2022 | 214,892 |  | $ | 8.43 |
Granted | 249,412 |  | 2.34 |
Forfeited | (70,959) |  | 10.04 |
Vested and Settled in shares | (332,845) |  | 4.29 |
Outstanding at December 31, 2023 | 60,500 |  | $ | 4.23 |
Granted | 223,485 |  | 4.23 |
Forfeited | — |  |  | N/A
Vested and Settled in shares | (246,028) |  | 2.80 |
Outstanding December 31, 2024 | 37,957 |  | $ | 2.51 |
Performance Stock Units On August 7, 2020, the Company issued 265,942 Performance Stock Units (PSUs) to its officers and certain employees as compensation (“PSU Plan”). 50% of the PSUs were to vest based on the Company’s market price and 50% were to vest based on the Company’s Adjusted EBITDA. Both the conditions were to occur over a specified time and were contingent on continued employment services. On November 4, 2021, the Company amended its PSU Plan so that 100% of the PSUs will vest based on the Company’s market price as the sole vesting criteria. As a result of this amendment, the Adjusted EBITDA performance metric is no longer a vesting criterion. The fair value of these awards with a market condition was estimated, at the date of grant, using the Monte Carlo Simulation model with compensation expense being determined on the closing market price of the Company’s common stock on the date of grant and is amortized ratably on a straight-line basis over the requisite service period. Following the amendment mentioned above which provided that the Company's market price is the sole vesting criteria for these awards, compensation expense is charged to operating expenses with a corresponding increase to additional paid-in capital and is not reversed if the vesting criteria is not met. All outstanding PSUs vested during the year ended December 31, 2023 and as of December 31, 2024 there were no outstanding PSUs.
| Number of Shares |  | Weighted Average Grant Date Fair Value
Outstanding at December 31, 2022 | 177,688 |  | $ | 7.91 |
Forfeited | (88,844) |  | 7.91 |
Vested and Settled in shares | (88,844) |  | $ | 7.91 |
Outstanding at December 31, 2023 | — |  | $ | — |
Forfeited | — |  | — |
Vested and Settled in shares | — |  | — |
Outstanding at December 31, 2024 | — |  | $ | — |
As of December 31, 2024, there was $726 of total unrecognized compensation costs, related to all unvested stock options and RSUs. These costs are expected to be recognized as compensation expense over a weighted average period of approximately 3.88 years. Stock-based compensation expense for the years ended December 31, 2024 and 2023 is as follows:
| Years Ended December 31,
| 2024 |  | 2023
Stock options | $ | 467 |  |  | $ | 666 |
Restricted stock units | 409 |  |  | 930 |
Performance stock units | — |  |  | — |
| $ | 876 |  |  | $ | 1,596 |
Stock-based compensation is included in operating expenses as follows:
| Years Ended December 31,
| 2024 |  | 2023
Selling, general and administrative | $ | 821 |  |  | $ | 1,358 |
Research and development | 55 |  |  | 238 |
| $ | 876 |  |  | $ | 1,596 |
As of December 31, 2024, the Company had 736,175 shares available for future grants under the Company’s equity compensation plans.

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