XML 26 R14.htm IDEA: XBRL DOCUMENT v3.25.1
Note 8 - Stock-Based Compensation
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

NOTE 8.     STOCK-BASED COMPENSATION

 

Under the Company’s stock option plans, the Board of Directors may grant restricted stock and options to purchase common shares to the Company’s employees, officers, directors and consultants. The Company accounts for stock options in accordance with FASB ASC Topic 718, Compensation - Stock Compensation, with stock-based compensation expense recognized over the vesting period based on the fair value on the grant date utilizing the Black-Scholes model, which includes a number of estimates that affect the grant date fair value and the amount of expense to recognize.

 

The Company recognized approximately $451,000 in stock-based compensation expense during the three months ended March 31, 2025, as compared with $1,128,000 for the three months ended March 31, 2024.

 

Stock option activity is summarized as follows:

           

Weighted average

  
   

Number of options

    

exercise price

  

Outstanding at December 31, 2024

     7,638,458     $ 5.50  

Granted

     842,250     $ 1.42  

Exercised

     —     $ -  

Canceled and forfeited

     (533,305 )   $ 5.46  

Outstanding at March 31, 2025

     7,947,403     $ 5.07  

 

The Company allows stock option holders to exercise stock-based awards by surrendering stock-based awards with an intrinsic value equal to the cumulative exercise price of the stock-based awards being exercised, referred to as net settlements. These surrenders are included in stock options exercised in the options rollforward above. There were no such exercises for the three months ended March 31, 2025. For the three months ended March 31, 2024, the Company received 531 options as payment in the exercise of 38 options. 

 

Common shares required to be issued upon the exercise of stock options would be issued from authorized and unissued shares. The Company calculated the grant date fair value of options granted in 2025 (“2025 Grants”) utilizing a Black-Scholes model.

 

   

2025 Grants

  

Strike price

  

1.42 -1.53

  

Risk-free rate

     4.5 %

Expected dividend yield

     —  

Expected volatility

     96.2% - 96.3%  

Expected term (in years)

     6  

Grant date fair value

     1.12 -1.21  

 

On April 9, 2025, the Company granted non-officer employees approximately 300,000 options to purchase common shares of the Company's stock at an exercise price of $0.90. All options granted were pursuant to the plans noted above. The employee options vest over a period of three years.