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Note 12 - Stock-based Compensation
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

12.

STOCK-BASED COMPENSATION

 

Market-Based Restricted Stock Units

 

In February 2026, the Board of Directors approved grants totaling 1,248,426 market-based RSUs to certain executive officers of the Company that vest based on the achievement of specified market conditions and continued service (the “February 2026 PSU Awards”). In June 2026, the Board of Directors approved additional grants totaling 1,800,000 market-based RSUs with the same vesting conditions (the “June 2026 PSU Awards”).  Vesting occurs in increments of one-third of the total grant when the closing price of the Company's common stock, as reported by NASDAQ, (i) meets or exceeds an average of $3.00 per share for any five (5) consecutive trading days, (ii) meets or exceeds an average of $4.00 per share for any five (5) consecutive trading days, and (iii) meets or exceeds an average of $5.00 per share for any five (5) consecutive trading days, in each case prior to December 31, 2030. The February 2026 PSU Awards will be settled in common stock on a prorated basis to the extent shares are available under the 2021 Equity Incentive Plan (the “Plan”); otherwise, vested awards will be settled in cash based on the fair market value of the Company’s common stock on the settlement date, defined as the five-day trailing average closing price as reported by NASDAQ. The June 2026 PSU Awards do not provide a cash-settlement alternative and will be settled in common stock upon vesting. 

 

The Company estimated the initial grant date fair value of these awards using the Monte Carlo simulation model with the following assumptions: 

 

Expected term (years)

4.6 - 4.9

 

Expected volatility

140.0

 %

Risk-free interest rate

3.7% - 4.2

 %

Dividend yield

—

 %

 

The Company classified these awards as equity at the initial grant date and at June 30, 2026. If, in a future period, the Company does not have sufficient shares available under the Plan to settle the February 2026 PSU Awards upon vesting, some or all of the February 2026 PSU Awards may be reclassified to liability and remeasured to fair value.

 

Stock-Based compensation

 

The following table summarizes stock-based compensation expense recorded in each financial statement line item in the Company’s condensed consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2026 and 2025 (in thousands):

 

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Research and development

 

$304

 

 

$316

 

 

$515

 

 

$1,011

 

Sales and marketing

 

 

167

 

 

 

126

 

 

 

251

 

 

 

255

 

General and administrative

 

 

1,948

 

 

 

718

 

 

 

3,195

 

 

 

2,395

 

Total stock-based compensation

 

$2,419

 

 

$1,160

 

 

$3,961

 

 

$3,661