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Note 10 - Stockholders' Equity and Stock-based Compensation

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Shareholders' Equity and Share-Based Payments [Text Block]

10. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

Stock-based Compensation

The Company includes stock compensation expense within general and administrative expenses in the Condensed Consolidated Statements of Operations. The Company recognized stock compensation expense of $0.0 million and $0.4 million during the three months ended June 30, 2025 and 2024, respectively. During the six months ended June 30, 2025 and 2024, the Company recognized $0.4 million and $0.8 million of stock compensation expense, respectively.

Issuance of Stock-based Awards

The Company has a long-term incentive plan (the “Amended and Restated Plan”) which provides for a maximum number of shares of common stock available for issuance of 5,500,000 shares. The plan was amended in 2023 to increase the maximum number of shares from 4,000,000 to 5,500,000, as approved by shareholders. Awards under the Amended and Restated Plan may be granted to employees, officers and directors of the Company and affiliates, and any other person who provides services to the Company and its affiliates (including independent contractors and consultants of the Company and its subsidiaries). Awards may be granted in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalents, substitute awards, other stock-based awards, cash awards and/or any combination of the foregoing. No participant may receive a grant covering more than 2,000,000 shares of our common stock in any year and a non-employee member of the Board may not be granted more than 100,000 shares in any year.

The Company did not grant any stock-based awards during the six months ended June 30, 2025.

Issuances of Common Stock

During the six months ended June 30, 2025, and 2024, shares of common stock were issued upon vesting of restricted stock units, net of withholding shares for tax payments, totaling 11,287 shares and 11,623 shares, respectively. There were no stock options or stock appreciation rights exercised during the six months ended June 30, 2025 or 2024.

Management Transition

Effective January 31, 2025, the Company and Mr. Ballard agreed that 7,765 unvested restricted stock units and 147,525 unvested stock options granted under the Company's Amended and Restated Long-Term Incentive Plan would vest as of the date of Mr. Ballard’s separation of employment (see Note 6). Additionally, the exercise period of these options plus 1.6 million options which had vested prior to Mr. Ballard’s separation was amended to expire December 31, 2025. The amendment of the exercise period represents a modification of an equity award under U.S. GAAP and the Company recognized $0.4 million in additional non-cash stock compensation expense related to the adjustment of the exercise period of his options to December 31, 2025. The assumptions included in estimating the additional expense include:

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The risk-free rate assumed the average return of a U.S. Treasury bill for 6 months, which was approximately 4% at January 31, 2025,

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$0 dividends, as we have not historically paid dividends,

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An expected option term of 5.5 months, and

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Volatility of 50%.