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STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2025

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

8. STOCK-BASED COMPENSATION

Stock-based compensation awards consist of stock options, restricted stock units and bonus shares issued under the Company’s equity incentive plans, which include the 2013 Plan and the Inducement Plan.

The Company’s stockholders approved amendments to the 2013 Plan to increase the authorized number of shares of Common Stock available and reserved for issuance under the 2013 Plan by 1,500,000 shares on May 10, 2023, and an additional 3,000,000 shares on May 30, 2024.

Under the 2013 Plan, the Company may grant awards of stock options, stock appreciation rights, restricted stock awards, restricted stock units (“RSUs”), unrestricted stock, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards and cash bonus awards to eligible persons. Equity awards under the 2013 Plan are granted from time to time at the discretion of the Compensation Committee of the Board (the “Committee”), with vesting periods and other terms as determined by the Committee with a maximum term of 10 years. The 2013 Plan is administered by the Committee, which can delegate the administration to the Board, other committees or to such other officers and employees of the Company as designated by the Committee and permitted by the 2013 Plan. As of March 31, 2025, 56,803 shares were available for future issuances under the 2013 Plan.

The Inducement Plan provides for the grant of equity-based awards, including RSUs, restricted stock, performance shares and performance units. Under the Inducement Plan, the Company may grant equity awards for the sole purpose of recruiting and hiring new employees. As of March 31, 2025, 114,429 shares were available for future issuances under the Inducement Plan.

The Company has elected to account for forfeitures as they occur rather than estimating forfeitures. Expense associated with an award that is forfeited prior to vesting will be reversed accordingly. For the three months ended March 31, 2025, and the three months ended March 31, 2024, the Company recorded stock-based compensation expense of $0.2 million, in each period. Stock compensation expense is recorded in the “General and administrative expenses” line item within the Condensed Consolidated Statements of Operations.

Stock Options

Stock options are valued using the Black-Scholes option pricing model on the date of grant. The Company accounts for forfeitures upon occurrence.

The following table summarizes stock options outstanding for the three months ended March 31, 2025 and 2024:


		March 31, 2025					March 31, 2024
				Weighted					Weighted
		Number of		Average			Number of		Average
		Stock		Exercise			Stock		Exercise
		Options		Price			Options		Price
Stock options outstanding at beginning of period		649,345		$	1.91		424,826		$	2.66
Stock options outstanding at end of period		649,345			1.91		424,826			2.66
Stock options exercisable at end of period		424,826		$	2.66		307,189		$	3.29

All options outstanding for the three months ended March 31, 2025, were issued under the 2013 Plan. The weighted average remaining term for stock options outstanding as of March 31, 2025, is approximately 7.4 years.

As of March 31, 2025, the Company had less than $0.1 million of unrecognized compensation costs related to non-vested stock options that will be recognized over a period of approximately three months.

Restricted Stock Units

RSUs are granted with vesting conditions determined by the Compensation Committee of the Board. Vesting conditions may include criteria such as time-based, performance-based, and/or a total shareholder return market condition. RSUs are valued at the fair value of the award on the date of grant, which is typically based on the closing share price of the Company’s Common Stock on the date of grant. The final number of shares issued under performance-based RSUs is generally based on the Company’s prior year performance as determined by the Compensation Committee at each vesting date, and the valuation of such awards assumes full satisfaction of applicable vesting criteria. The Company accounts for forfeitures upon occurrence.

The following table summarizes RSU activity for the three months ended March 31, 2025 and 2024:


		March 31,					March 31,
		2025					2024
				Weighted-					Weighted-
				Average					Average
		Number of		Grant Date			Number of		Grant Date
		RSUs		Fair Value			RSUs		Fair Value
Unvested RSUs at beginning of period		4,090,639		$	0.60		1,773,058		$	1.03
Granted		43,200			1.04		—			—
Forfeited/Expired		(110,060)			1.25		(6,784)			3.93
Vested		(1,372,449)			0.65		(548,361)			1.07
Unvested RSUs at end of period		2,651,330		$	0.56		1,217,913		$	1.00

As of March 31, 2025, the Company had $0.5 million of unrecognized compensation costs related to non-vested RSUs that will be recognized over a period of approximately 1.8 years.